Swiss security products maker Tyco International Ltd. (TYC) Friday said first-quarter profit declined from the prior year, amid a marginal drop in revenues due to adverse currency. However, adjusted earnings met expectations and organically, revenue grew. Further, the company lowered its earnings outlook for the year, to reflect a strong U.S. dollar.
Net income attributable to ordinary shareholders fell to $162 million from $270 million reported last year. Earnings per share dropped to $0.38 from $0.57 last year.
Income from continuing operations fell to $0.38 from $0.52. Adjusted earnings per share from continuing operations were $0.49, while it totaled $0.42 last year.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue edged down to $2.479 billion from $2.493 billion last year. Analysts expected revenues of $2.50 billion.
According to the company, revenue grew 2 percent on an organic basis, led by the Global Products segment with organic growth of 10 percent.
In North America Installation & Services, revenue slipped 1 percent to $951 million, due to the weakening of the Canadian dollar.
Rest of World Installation & Services reported revenues of $917 million that decreased 6 percent, driven by a 7 percent unfavorable impact related to changes in foreign currency exchange rates.
Global Products' revenues climbed 8 percent to $611 million. For the division, organic revenue growth was 10 percent, driven by strong growth across all three platforms, led by Security Products and Life Safety Products.
Looking ahead, the firm expects second-quarter earnings per share before special items of $0.48 - $0.50. Analysts expect earnings per share of $0.56 for the quarter.
Further, the company revised its guidance for full year 2015 earnings per share before special items to a range of $2.30 - $2.40 from the previous projection of $2.35 - $2.45, adjusting for incremental $0.09 headwind from foreign currency exchange rates, offset by $0.04 benefit from recent acquisitions and additional productivity. Wall Street looks for fiscal year earnings of $2.41 per share.
Tyco CEO George Oliver said, "While we continue to deliver strong operating performance, the sustained strengthening of the U.S. dollar is putting additional pressure on our results...We are able to partially offset this incremental headwind with the benefit of recent acquisitions and additional productivity. As a result, we are updating our full year EPS guidance to a range of $2.30 to $2.40 before special items, which at the midpoint would represent an 18% year-over-year improvement."
TYC closed up 1.2 percent on Thursday at $41.71.
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