Tyco Plans To Spin Off Unit, Posts 2Q Profit

NEW YORK (AP) -- Tyco International Ltd. returned to a profit in its fiscal second quarter on Tuesday, helped by the lack of a massive write-off that weighed down results last year.

Adjusted earnings and revenue results topped Wall Street's expectations.

The Switzerland-based diversified manufacturer also said it plans to spin off its electrical and metal products division into an independent publicly traded U.S. company by the first half of fiscal 2011.

The unit designs, makes and sells galvanized steel tubes and pipes, electrical conduit, armored wire and cable, metal framing systems and building components.

The proposed tax-free spinoff needs approval from both Tyco's board and its shareholders.

For the period ended March 26, Tyco earned $310 million, or 65 cents per share. That compares with a loss of $2.57 billion, or $5.42 per share, a year earlier.

The prior-year period included about $2.72 billion in goodwill and intangible asset impairment charges.

Removing 6 cents per share in special items, earnings from continuing operations were $284 million, or 59 cents per share, in the latest quarter.

Revenue edged up 1 percent to $4.17 billion from $4.15 billion, helped by strong results from its ADT Worldwide unit and a slight improvement in its electrical and metal products division.

The performance beat Wall Street's expectations, with analysts polled by Thomson Reuters forecasting a profit of 55 cents per share on revenue of $4.14 billion. These estimates normally exclude one-time items.

The company credited results to continued strength in its recurring revenue and service operations.

"We continue to see the benefits of our cost-management and restructuring actions and order activity is improving in a number of our businesses which increases our confidence about the second half of our fiscal year," Tyco Chairman and CEO Ed Breen said in a statement.

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