Tyco Q4 Profits Soar 38% to $1.27 Billion

Nov.16.06 | About: Tyco International (TYC)

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Tyco 4th-Quarter Profit Rises [AP]

Summary: Tyco International reported a 38% increase in its Q4 profit. Net income reached $1.27 billion, or 62 cents/share up from Q4:05's $917 million or 44 cents/share. Revenue increased 8% from $9.94 billion to $10.76 billion, beating analyst estimates of $10.5 billion. Tyco shares were down 3 cents to $29.90 yesterday. Tyco also said they will have to restate financial records from 1999 through 2002, the years during which the now-convicted Dennis Kozlowski served as CEO. "Sloppy bookkeeping" issues surrounding stock-options grants from this period will cost the company $171 million in after-tax expenses. The company also announced a restructuring program that promises to save Tyco $50 million in 2007 and $200 million in 2008. Analysts were pleased with these results.
Related links: Media coverage: MarketWatch, BusinessWeek . Commentary: Looking Beyond the Scandal at TycoTyco Heeded Warning on Options Backdating.
Potentially impacted stocks and ETFs: Tyco International (NYSE:TYC). Competitors: Johnson & Johnson (NYSE:JNJ), Molex Inc (NASDAQ:MOLX) • ETFs: Vanguard Industrials VIPERs (NYSEARCA:VIS), iShares Dow Jones US Industrial (NYSEARCA:IYJ), Industrial Select Sector SPDR (NYSEARCA:XLI).

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