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Tyco Int'l 1Q beats Street
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January 19, 1999: 7:39 a.m. ET
Manufacturer reports 42 percent jump in diluted earnings per share from year ago
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NEW YORK (CNNfn) - Tyco International Ltd. reported Tuesday a 42 percent increase in diluted earnings per share in its first quarter compared with a year earlier, beating analysts' estimates by three cents. The company attributed its results to strong growth in all four of its business segments.
The manufacturing and service company said before charges related to its merger with U.S. Surgical and extraordinary items, its diluted earnings per share for the quarter ended Dec. 31, 1998 were 61 cents a share, compared with 43 cents per share in the year-ago period.
Analysts polled by the research firm First Call had expected Tyco (TYC) to post earnings of 58 cents a share in the first quarter.
The company reported that income before acquisition-related charges and the extraordinary item was $401.6 million, a 52 percent increase over last year's $265 million. The company posted $3.82 billion in sales for the quarter, a 28 percent rise from the $2.99 billion reported in the same period in 1997.
Each of Tyco's divisions reported growth in their first-quarter results. The healthcare and specialty products group posted earnings of $273.8 million, a 74 percent increase over the $157.3 million a year earlier. The fire and security services group earnings grew 40 percent to $205.4 million versus $146.3 million in 1997. The Tyco flow control group earnings moved up 30 percent to $93.5 million from $71.9 million last year. And in the electrical and electronic components segment, earnings jumped 33 percent to $95.0 million from $71.6 million reached a year earlier.
"Strong organic growth across each of our four business segments and all geographies drove Tyco's record performance in the first quarter," said L. Dennis Kozlowski, Tyco's chairman and chief executive officer in a statement. "We remain on track to meet our year-end goals of record revenues, earnings and cash flows. Additionally, the acquisition of AMP, which will close in late March, will further strengthen our business mix and immediately add to earnings per share."
Tyco noted that its results for 1997 were restated to reflect its merger with U.S. Surgical, which was accounted for as a pooling of interests, and are before a non-recurring $2.4 million charge to retire debt. Including the charges, the company said its loss per share was 4 cents in 1998 compared to diluted earnings per share of 41 cents in 1997.
Shares of Tyco closed up 1-1/6 at 73-3/16 on the New York Stock Exchange Friday. 
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Tyco International
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