Tyco Electronics 4Q profit plunges

By The Associated Press

posted: 23 DAYS 17 HOURS AGO

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-Tyco Electronics Ltd. said Wednesday its fiscal fourth-quarter profit fell more than 50 percent, though its adjusted earnings beat Wall Street estimates. Shares surged in morning trading.

Net income of $93 million, or 20 cents per share, was down from $202 million, or 43 cents per share in the same quarter last year.

However, the maker of engineered electronic components, networking equipment and undersea telecommunications equipment said that adjusting for restructuring charges, taxes and retirement of debt, earnings were $140 million, or 30 cents per share.

Analysts surveyed by Thomson Reuters expected earnings to be 27 cents per share. Analysts typically exclude one-time gains and charges.

Revenue for the period ended Sept. 25 was $2.7 billion, down 25 percent from $3.58 billion in the year-ago quarter.

Analysts expected revenue of $2.6 billion.

CEO Tom Lynch cited a "significant deterioration" in demand, particularly in global consumer markets served by the company's electronic components business. In addition, sales fell 31 percent from the previous year in Tyco Electronics' automotive business.

For the full year, Tyco Electronics lost $3.3 billion, or $7.09 per share, down sharply from a profit of $1.8 billion, or $3.67 per share for fiscal 2008.

Adjusting for restructuring and impairment charges and tax and other items, adjusted income for the year was $380 million, or 83 cents per share.

Analysts expected earnings to be 79 cents per share, according to a survey by Thomson Reuters.

Revenue for the year was $10.26 billion, down 29 percent from $14.37 billion.

Analysts expected revenue of $10.77 billion for the year.

For the fiscal first quarter of 2010, the Swiss-based company said it expects to earn between 25 cents per share and 29 cents per share, including restructuring and other charges of about 10 cents per share, on revenue of $2.7 billion to $2.8 billion. That would be flat to down slightly from the first quarter of 2008.

Tyco said it expects its electronic components business to keep improving as the undersea telecommunications business continues to slow.

In morning trading, shares rose $1.43, or 6.6 percent, to $23.14.

2009-11-04 10:04:20