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City View: Tyco cuts estimates as it takes pounds 1.6bn charge.

Tyco International yesterday slashed its profits outlook for the current quarter and said it would take a charge of up to pounds 1.6 billion. New chief executive Edward Breen abandoned the earnings estimates given by previous bosses - accused of orchestrating a massive fraud scheme during the regime of former chairman Dennis Kozlowski.

But Mr Breen said no new accounting irregularities had been found following a forensic accounting review, and the company's revenue stream would remain steady.

He said fiscal fourth-quarter revenue would be about pounds 5.9 billion, or level with the previous quarter.

However, in his first public comments to analysts and investors since being named chief executive in July, Mr Breen said he expected Tyco to earn 30-33 cents a share, excluding special items, in the three months to September against a previous estimate of 45-47 cents a share.

The charge will write off most of the investment in the company's undersea fibre-optic cable business TyCom.

Mr Kozlowski is under criminal indictment along with former chief financial officer Mark Swartz and former general counsel Mark Belnick.

Mr Breen blamed a higherthan-expected tax rate and weakness in the telecom sector of its electronics business for the reduced profits forecast.

In the West Midlands Tyco owns Dudley-based How Fire, JW Singer & Sons, and the former control systems operations of IMI. It also has around 70 per cent of UK steel tube producing through acquisitions from Senior Engineering and Glynwed.
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Title Annotation:Business
Publication:The Birmingham Post (England)
Geographic Code:5BERM
Date:Sep 26, 2002
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