Tyco International Ltd. reported $0.55 in diluted earnings per share (EPS) from continuing operations for the fiscal fourth quarter of 2010 and diluted EPS from continuing operations before special items of $0.74 per share. Revenue in the quarter was $4.5 billion with organic revenue growth of 2% year-over-year.
For full year 2010, the company reported $2.31 in diluted EPS from continuing operations and diluted EPS from continuing operations before special items of $2.68 per share. Revenue increased 1% to $17.0 billion. Cash from operating activities was $2.63 billion. Free cash flow of $1.38 billion included cash payments of $198 million primarily for restructuring.
Commenting on Tyco's results, Chairman and Chief Executive Officer Ed Breen said: "Looking at the quarter, we are encouraged by strengthening business conditions, continued operating margin improvement and strong earnings and cash flow. Our integration of Broadview Security is proceeding on track and contributed to our growth in the quarter. We finished the year in sound financial condition with a strong balance sheet and the financial flexibility to invest in the future growth of our businesses."
"For the full year, we increased our earnings per share 15% reflecting a sustained reduction in our overall cost structure. At the same time, we strengthened the focus of our portfolio around our core security, fire and flow control platforms through a series of transactions highlighted by the Broadview acquisition and our decision to pursue a disposition of our Electrical & Metal Products business."
Segment Results:
- ADT Worldwide
Full year revenue of $7.4 billion increased 4% year-over-year. Operating income was $1.06 billion and included $48 million of special items. Operating income before special items was $1.10 billion and the operating margin before special items improved 180 basis points to 15.0%. The operating margin improvement benefited from growth in ADT's higher-margin recurring revenue business, improvement in the commercial business in all geographic regions and the continued benefit of restructuring and cost reduction activities.
- Fire Protection Services
Full year revenue of $3.4 billion decreased 2% with an organic revenue decline of 5%. Operating income was $272 million and the operating margin was 8.1%. Despite the organic revenue decline, operating income before special items of $306 million increased $11 million due to the benefit of restructuring and cost containment actions.
- Safety Products
Full year revenue of $1.5 billion remained flat and operating income was $221 million, which included $12 million of special items. Operating income before special items was $233 million.
