(By Balaseshan) Tyco International Ltd. (NYSE: TYC), a pure-play fire protection and security company, slipped to a quarterly loss due to spin-off and separation costs. Despite revenue exceeding consensus, adjusted earnings missed Street's expectations.
Loss from continuing operations for the fourth quarter was $629 million or $1.36 per share, compared to a profit of $174 million or $0.37 per share last year. Adjusted earnings per share (EPS) from continuing operations fell to $0.33 from $0.43.
Total revenue declined 2.5% to $2.73 billion. This included a 3% decline due to foreign currency, a 4% decline related to the impact of the benefit of the 53rd week in 2011, and a 4% benefit from acquisitions.
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Organic revenue grew 1% in the quarter with 9% growth in products, 2% growth in service and a 4% decline in installation revenue.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.35 per share on revenue of $2.72 billion for the fourth quarter.
Revenue from North America Systems Installation & Services decreased 5% primarily driven by the benefit of an additional week of revenue in the prior year. Service revenue was in-line with the prior year, while installation revenue declined 2% organically for a net organic revenue decline of 1%.
Revenue from Rest of World Systems Installation & Services fell 7% including a 6% decline due to foreign currency. Organic revenue declined 1% with 4% growth in service and a 7% decline in installation.
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Global Products revenue increased 15% including a 3% decline due to foreign currency. Organic revenue grew 9% with 3% growth in fire products, 24% growth in security products and 10% growth in life safety products.
Tyco is one of three remaining pieces of an industrial conglomerate that broke up in September, according to Reuters. A North American security arm, ADT, is now a separate company, while Tyco's former flow control unit merged with Pentair Ltd.
TYC closed Tuesday's regular session down 0.29% at $27.33. The stock has been trading between $26.43 and $58.12 for the past 25 weeks.