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Tyco 1Q profit jumps
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January 15, 2002: 11:08 a.m. ET
Diversified manufacturer tops forecasts but warns; stock sinks.
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NEW YORK (CNN/Money) - Tyco International Ltd. posted sharply higher profits for the latest quarter, topping Wall Street forecasts, but the diversified manufacturer also warned Tuesday that its results in the current quarter would fall short of expectations.
For its first quarter ended Dec. 31, the maker of fire extinguishers, electronic connectors, crutches and other products said it earned $1.5 billion, or 74 cents a share, excluding certain items, up from $997 million, or 63 cents a share, a year earlier. The company restated year-ago results in accordance with a new accounting principle.
Analysts on average expected a profit of 73 cents a share, according to earnings tracker First Call.
Sales rose to $10 billion from $8 billion.
The Pembroke, Bermuda-based company also lowered its second-quarter earnings estimate to about 81 cents a share, citing near-term uncertainty in the electronics business, versus Wall Street forecasts of 86 cents a share for the quarter.
Tyco (TYC: down $4.73 to $47.67, Research, Estimates) stock sank in morning trading.
In addition to connectors, the company's electronics unit, its biggest, makes printed circuit boards and other products.
The company said its free cash flow, which it defines as cash generated from operations minus capital spending and dividends, came in at negative $215 million, compared with positive $227 million a year earlier.
Tyco cited seasonal slowness and the payment of employee cash bonuses for the negative cash flow in the first quarter.
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It said it still expects earnings of $3.70 a share for the full year, above Wall Street estimates of $3.67. It expects free cash flow of about $800 million to $1 billion in the second quarter and $4 billion for the entire fiscal year. 
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