Tyco Posts $1.75 Billion Loss, Restates Some Prior Results

Jan. 13, 2005
By Agence France-Presse Embattled conglomerate Tyco International Ltd. announced a quarterly loss of $1.75 billion, hurt by a whopping $2.8 billion write-down for restructuring and other charges. Tyco, whose former top executive faces criminal charges ...
By Agence France-Presse Embattled conglomerate Tyco International Ltd. announced a quarterly loss of $1.75 billion, hurt by a whopping $2.8 billion write-down for restructuring and other charges. Tyco, whose former top executive faces criminal charges of looting the company, also restated some of its earlier results based on reviews of its accounting practices. Excluding special charges, the Bermuda-based industrial giant said it had earnings of 30 cents per share for the fiscal fourth quarter, below the Wall Street consensus estimate of 32 cents per share. Overall revenues from continuing operations in the fourth quarter were $9.36 billion, up 9.9% from the same period last year. The bulk of the special charges in the latest quarter were the result of a $2.2 billion write-down of the value of the firm's Tyco Telecommunications (TyCom) unit. There were also write-downs of certain investments, accounts receivable and inventory, the company said. TyCom also dented already-weak margins at the company's electronics division, which accounted for $2.6 billion of Tyco's revenues in the period. Tyco Chairman and CEO Ed Breen said the company posted "strong cash flow and revenues that exceeded the expectations we outlined in our Sept. 25 conference call ... [despite] a difficult economic environment and the issues facing the company." Tyco investigative lawyer David Boies said it is possible that the company will make further restatements of past earnings. Boies, who has been brought in to oversee a forensic accounting review of Tyco's books, said the review is about 60% complete. "It's possible that some disclosures will be made in addition to what was discussed," said the Boies. "But we have not found anything that would meaningfully diminish current earnings." Chief Financial Officer David Fitzpatrick said that the company has restated earnings related to its ADT unit after discovering that $135 million in fees on contracts had been booked up front instead of being deferred over the life of the contracts. Tyco's U.S. headquarters are in Exeter, N.H.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!