Tyco sees higher than expected Q1 revenues

Company continues to grow service and recurring revenue


Operating income was $54 million and the operating margin was 15.1%. Operating income before special items was $53 million and the operating margin before special items was 14.8%. The benefits from cost-containment actions and restructuring activities were more than offset by the impact of the organic revenue decline and product mix.

OTHER ITEMS

• On January 18, 2010, Tyco announced a definitive agreement to acquire Brinks Home Security Holdings, Inc., now operating as Broadview Security, in a transaction valued at approximately $2.0 billion. The transaction is expected to close in the second half of Tyco's 2010 fiscal year.
• On January 15, 2010, the company announced that its Board of Directors recommended shareholder approval of an annual Swiss Franc dividend equal to $0.84 per share at the company's annual general meeting of shareholders to be held on March 10, 2010. The proposed dividend represents a five percent increase over the $0.80 per share approved by shareholders in 2009.
• On December 14, 2009, Tyco's Flow Control business acquired two Brazilian valve companies in a move to expand its product and service offerings in Brazil and South America.
• Corporate expense was $98 million in the quarter and included special items of $2 million.
• The company incurred pre-tax charges of $11 million in the quarter related to restructuring activities.
• Other income in the quarter of $9 million resulted from the increase in receivables from Covidien and Tyco Electronics related to tax liabilities for periods prior to Tyco's separation into three companies in 2007.
• The tax rate for the quarter was 14.9%.