Tyco raises sales forecast
NEW YORK (Bloomberg) - Bermuda-based Tyco International Ltd., the world's biggest maker of connectors, raised its 2008 forecast on higher sales at its ADT and flow control units and said first-quarter revenue and margins topped previous projections.
Tyco climbed the most in more than four years in New York trading. Profit for the year ending in September will be $2.60 to $2.70 a share, excluding some items, Tyco said in a statement yesterday. That is more than $2.59, the average estimate from 12 analysts polled by Bloomberg, and chief executive officer Ed Breen's prior forecast of $2.50 to $2.65.
Sales at the ADT security systems unit and the flow control division, which makes valves used by municipalities and the oil and gas industries, has fueled growth. Revenue in the first quarter, which ended in December, rose 12 percent, higher than the eight percent previously forecast, Tyco said. The company will post complete first-quarter results on February 5.
Tyco climbed $1.38, or 4.1 percent, to $35.10 at 1.13 p.m. in New York Stock Exchange composite trading. Earlier, the stock reached $36.33, the biggest increase since March 17, 2003. The stock has declined 28 percent in the past 12 months.
During the first quarter, revenue increased at all five divisions. Operating income was $499 million. Excluding some items, it totaled $523 million, a 55 percent rise over last year. Lower corporate expenses helped boost operating margin to 10.7 percent, excluding some items, higher than the 9 percent previously forecast.
The company did not provide a per-share number for first- quarter results. Mr. Breen last year split Tyco into three publicly traded companies, staying to run the remaining security, fire and industrial valve units. Tyco is run from West Windsor, New Jersey.