Bermuda-based manufacturing giant Tyco International yesterday announced better than expected first quarter earnings, with a huge rise of 48 percent in earnings per share.

And Dennis Kozlowski, the company's chairman and chief executive officer, said about the company `prospects have never been better'.

He also spoke about the company's plans for a stock buy-back.

Tyco earnings better than expected That stock buy-back will to finance a new telecommunications company which was announced on Monday.

Mr. Kozlowski said that the prosperity of the company was due to "organic growth''.

The diversified manufacturer posted first-quarter earnings of $784.3 million, or 46 cents per diluted share, compared with year-ago earnings of $509.3 million, or 31 cents a share.

Analysts had forecast Tyco would earn 45 cents a share in its first quarter, which ended December 31, according to estimates compiled by First Call/Thomson Financial. Including charges and credits related to Tyco's acquisitions of AMP and US Surgical, Tyco's year-earlier results would have totaled a loss of 7 cents per share, the company said.

Tyco said first-quarter sales rose 27 percent to $6.64 billion, from $5.21 billion a year earlier.

Investors welcomed the results, as Tyco shares surged $3 1/16 to close at $37 5 yesterday.

Mr. Kozlowski said that growth across each of Tyco's four segments -- telecommunications and electronics; health care and speciality products; fire and security services; and flow control products and services -- had pushed the company forward in the past year.

"The strength of our core businesses combined with strong cash flows are indicative of another strong year for Tyco,'' Mr. Kozlowski said.

Tyco also said its board of directors has authorised a share buy back of up to $2 billion.

The timing and amount of the buy back are subject to market conditions, the company said.

On Monday, Tyco announced plans to build and operate a global undersea fiber optic communications network and offer 20 percent of the new firm in an initial public offering.