Tyco International Ltd, one of the world's largest maker of security systems through its ADT unit, said first-quarter profit fell 24 per cent because of a higher US dollar and weak demand in North America and Europe.
Profit from continuing operations declined to $272 million (Dh999m), or 57 cents a share, from $360m, or 72 cents, a year earlier, the Bermuda-based company, said yesterday in a statement. Revenue in the quarter ended December 26 dropped 8.5 per cent to $4.43 billion. Excluding some items, profit exceeded analysts' estimates.
Sales and profit fell in each of Tyco's five main divisions. While results were hurt by the strengthening dollar, the company said total revenue was at the high end of its expectations. More than half its sales comes from outside the US. Year-earlier earnings were helped by a large order from Australia in the valve unit. ADT, the company's largest unit, is being hurt by slowing sales to retailers.
"Falling steel prices and production volumes will leave Tyco with high-priced inventories and narrowing price/cost spreads," Jeffrey Sprague, a New York-based analyst at Citigroup, wrote in a note to investors before results were released.
Excluding some items, Tyco International earned 61 cents a share.
The average of 12 analysts' estimates compiled by Bloomberg was for 47 cents.
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