Conglomerate Tyco International Ltd., which is in the process of splitting into three publicly traded companies, reported higher quarterly profit on Tuesday, citing increased demand for its electronics and fire and security technology.
Net earnings rose 43 percent to $793 million, or 39 cents per share, in the first quarter ended December 29, from $556 million, or 27 cents per share, a year earlier.
Profit from continuing operations was 37 cents per share. Excluding charges of 8 cents for restructuring and for the separation, profit was 45 cents per share, 1 cent ahead of Wall Street forecasts, according to Reuters Estimates.
Revenue rose 8 percent to $10.3 billion, compared with Wall Street forecasts of $10.27 billion.
Three of Tyco’s four divisions posted higher sales and higher operating profits for the quarter, but its health care segment reported lower profit because of restructuring and other charges.
The electronics segment reported strong demand from the automotive and industrial sectors, offset by lower growth in computers and the communications market.
Tyco, which plans to spin off its health care and electronics divisions early in the second quarter, said it felt good about the global economic environment, despite slowing in some electronics markets. It expects second-quarter sales to rise 6 percent to 7 percent.
Tyco shares have gained more than 30 percent over the past year, double the rise of the Standard & Poor’s 500-stock index.
