Tyco International posted a higher-than-expected quarterly profit on strength at its ADT Worldwide security unit, and the industrial conglomerate said business conditions were improving.
The maker of security and fire control systems, as well as industrial valves, reported net earnings of $266 million, or 53 cents per share, for the fourth quarter ended Sept. 24, compared with $205 million, or 43 cents per share, a year earlier.
Profit from continuing operations, excluding items, was 74 cents a share, 8 cents ahead of Wall Street estimates, according to Thomson Reuters I/B/E/S.
Sales were up 4 percent at $4.49 billion, slightly ahead of Wall Street forecasts.
Tyco's biggest unit, ADT Worldwide, which provides security systems and services, posted revenue of $1.95 billion, up 8 percent, but operating income jumped 24 percent. Tyco cited cost cuts and its acquisition of Broadview Security.
Separately, Tyco said it would sell a majority stake in its electrical and metal products unit, which it had previously planned to spin off, for $720 million in cash. The sale, to private equity firm Clayton Dubilier & Rice, will enable Tyco to speed up a $1 billion stock buyback it announced in September.
The company said it was "encouraged by strengthening business conditions," but did not immediately provide a fiscal 2011 profit forecast.
Tyco, which rejoined the S&P 500 index this year, has been remaking its portfolio of businesses since the 2007 spinoff of its electronics business and Covidien healthcare unit. It paid $1.9 billion for Brink's Home Security holdings and has divested its European waterworks business.
Covidien earnings also topped analyst forecasts on Tuesday.
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