Tyco International Ltd. reported today a $3.55 billion loss for the third quarter as it pays for lawsuits and breakup costs tied to its former convicted chief executive officer.
Tyco settled a $3.31 billion shareholder lawsuit in the
quarter over the misdeeds of
Dennis Kozlowski, the company’s former CEO convicted of stealing
$600 million from the company. Kozlowski was sentenced in 2005 to serve at
least eight years in prison, but the term could be as long as 25 years.
The loss compares with $868 million in net income for the
third quarter of 2006. Third-quarter
revenue increased 7.8 percent to $5.09 billion from $4.72 billion, above the
company’s forecast of 5.5 to 6.5 percent growth.
The results marked
the first reported by Tyco since completing the spin-off of its health care and
electronics businesses last June. The results reported today only include Tyco
International divisions, which include fire and safety products, flow controls
and security systems.
for Tyco’s flow control business increased 43 percent to $124 million on a 22
percent increase in sales.
Tyco said it expected sales would be up 6 to 7
percent for the fourth quarter and estimated an operating profit.
Aug. 7, 2007 -Tyco Post 3Q Loss, But Higher Earnings For Flow Controls
August 7, 2007