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Tyco back on the road to recovery with first quarter profit.

Shamed conglomerate Tyco International yesterday posted a quarterly profit, reversing the loss of a year ago, as it restated results dating back to 1998 in a bid to clean up the accounting mess left by its former leadership.

Tyco's healthcare division accounted for nearly 45 per cent of the Bermuda-based company's operating profit, while other key operations produced lacklustre results.

Total revenue would have dropped without foreign currency benefits.

Tyco, which in the Midlands owns Dudley-based How Fire, JW Singer & Sons, IMI's former safety flow control systems business and most of the UK's steel tube production, posted earnings of pounds 350 million in the fiscal third quarter to the end of June, compared with a net loss of pounds 1.6 billion a year earlier.

Foreign currency effects boosted quarterly revenue to pounds 5.8 billion from pounds 5.6 billion in 2002, helping operations that range from burglar alarms and duct tape to electronic connectors and plastics.

However, Tyco's engineered products, plastics and adhesives units were hurt by higher raw material costs and a soft global economy.

Tyco chairman Edward Breen said the fire and security unit, which includes ADT burglar alarms, continued to be in a 'turnaround situation' under new management.

As expected, Tyco restated financial results that reflect performance over a five and a half year period following discussions with the US Securities and Exchange Commission over the accounting methods used during the tenure of disgraced former chairman Dennis Kozlowski.

The restatement includes previously recorded pre-tax charges of pounds 388 million, reflecting more conservative accounting methods. Tyco said it does not anticipate the restatement will have any adverse impact on its operating results or cash flow for the remainder of 2003 or future years.
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Title Annotation:Business
Publication:The Birmingham Post (England)
Geographic Code:1USA
Date:Jul 30, 2003
Words:287
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