Tyco Shares Climb As 4Q Profit Doubles

Net income for conglomerate rises to $917 million, up from $454 million


Tyco International Ltd., a conglomerate which makes security, health care and other products, said Wednesday its fiscal fourth-quarter net income doubled, as results benefited from a low tax rate. Its shares rose 5 percent in early trading.

For the quarter ended Sept. 30, net income rose to $917 million, or 44 cents per share, from $454 million, or 22 cents per share.

Income from continuing operations rose to $876 million, or 42 cents per share, from $576 million, or 27 cents per share.

Per-share results in the current quarter included net charges of 6 cents, including a gain of 10 cents for the resolution of certain legacy matters, offset by charges for legal matters, debt retirement and divestitures.

Last year's results included net charges of 18 cents per share related to the early retirement of debt, as well as restructuring and divestiture charges.

Revenue in the quater was $10.03 billion, up from $9.99 billion a year ago.

Beginning in the fourth quarter, the plastics and adhesives segment was classified as a discontinued operation. It had operating income of $32 million on revenue of $465 million.

On average, analysts surveyed by Thomson Financial forecast revenue of $10.61 billion.

The company's fourth-quarter tax rate was about 1 percent, while the fourth quarter tax rate adjusted for special items was 21 percent.

Tyco shares rose $1.43, or 5.2 percent, to $28.83 in monring trading on the New York Stock Exchange.

In fiscal 2006, Tyco expects earnings per share from continuing operations excluding special items to increase by about 10 percent over full-year 2005 results.

Tyco said it will adopt an accounting rule in the first quarter requiring the expensing of stock options. The change is expected to reduce per-share earnings by 6 cents to 7 cents for the full year.

For the first quarter, Tyco expects to earn 40 cents to 42 cents per share from continuing operations, excluding special items but including costs of about 2 cents from the adoption of stock expensing.

Analysts surveyed by Thomson Financial predict income of 44 cents per share for the December quarter and $2.05 per share for fiscal 2006.


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