Tyco Reports Fourth Quarter Earnings of 0.22 Per Share

Nov. 1, 2004
Company completes closures and layoffs, strengthens balance sheet

Tyco International reported today that its fourth quarter earnings were $0.22 per share, marking the end of the company's fiscal year on Saturday, Sept. 30.

According to the company, the earning per share amount also included charges of $0.11 per share for early retirement of debt, $0.05 per share for restructuring and $.07 per share from divestitures. Tyco's revenue grew 13 percent to $10.4 billion.

Net income for the quarter was reported at $454 million; the company posted a net loss of $297 million in the same quarter one year ago.

According to a company report, Tyco International had a revenue of $40.2 billion for the entire fiscal year, organic growth of 5 percent (compared to 7 percent for fourth quarter 2004). Diluted GAAP earnings per share were $1.35 per shared (compared to $0.49 for fiscal year ending in 2003).

The company reported that cash flow from operations totaled $1.4 billion. For the full year, the company had revenue of $40.2 billion, with organic revenue growth of 5 percent. Diluted GAAP EPS was $1.35 per share compared with $0.49 per share in 2003. Cash flow from operating activities totaled $5.4 billion and the company had free cash flow of $4.8 billion for the year. Both cash flow measures were reduced by approximately $575 million of voluntary pension contributions.

Tyco's debt-to-capital ration declined to 35.6 percent, which strengthened the company's balance sheet, and in this past quarter, Fitch boosted the company's debt ratings to BBB+. The company also increased its investment in research and development by 18 percent. During the fourth quarter, the company also completed its year-long restructuring program with closed 227 facilities and saw layoffs of 8.100 employees.

"Our results this quarter were a strong finish to a year of important operational progress for Tyco," said Chairman and Chief Executive Officer Ed Breen in a Nov. 1 press release. "Over the course of 2004, we experienced good growth in revenue, we expanded our margins and we used our strong cash flow to further strengthen Tyco's balance sheet."