TYCO INTERNATIONAL LTD. (SWITZERLAND) (TYC, Financial) filed Quarterly Report for the period ended 2009-06-26.
Tyco International Ltd. a diversified manufacturing and service company is the world\'s largest manufacturer and servicer of electrical and electronic components and undersea telecommunications systems the world\'s largest manufacturer installer and provider of fire protection systems and electronic security services has strong leadership positions in disposable medical products plastics and adhesives and is the largest manufacturer of flow control valves. (press release) TYCO INTERNATIONAL LTD. (SWITZERLAND) has a market cap of $13.63 billion; its shares were traded at around $28.8 with a P/E ratio of 10.1 and P/S ratio of 0.7. The dividend yield of TYCO INTERNATIONAL LTD. (SWITZERLAND) stocks is 2.8%.
All of our reportable segments experienced declines in operating income for both the quarter and nine months ended June 26, 2009. On a consolidated basis, operating income for the quarter and nine months ended June 26, 2009 declined $238 million to $339 million and $3.3 billion to $(1.8) billion, respectively, primarily as a result of lower sales volume of steel products at our Electrical and Metal Products segment. The operating loss included goodwill and intangible asset impairments of $2.7 billion for the nine months ended June 26, 2009. The decrease included restructuring, asset impairment and divestiture charges, net of $37 million for the quarter ended June 26, 2009. Additionally, in the quarter ended June 26, 2009 management estimates that $10 million of additional charges were incurred resulting from restructuring actions. The nine months ended June 26, 2009 included legacy legal settlement charges of $110 million as well as restructuring, asset impairment and divestiture charges, net of $147 million. Additionally, in the nine months ended June 26, 2009 management estimates that $14 million of additional charges were incurred resulting from restructuring actions. Additionally, the quarter and nine months ended June 26, 2009, were negatively impacted by $35 million and $43 million, respectively, due to unfavorable changes in foreign currency exchange rates.
In response to the economic downturn, cost containment actions have been initiated across all of our businesses and corporate. We are also pursuing cost savings through restructuring activities in fiscal 2009 and expect to incur restructuring and restructuring related charges of approximately $200 million in fiscal 2009, of which $34 million and $142 million was incurred during the quarter and nine months ended June 26, 2009, respectively. Additionally, management estimates that $10 million and $14 million of additional charges were incurred resulting from these restructuring actions during the quarter and nine months ended June 26, 2009, respectively. We believe these restructuring activities will strengthen our competitive position over the long term.
Operating income decreased $238 million to $339 million for the quarter ended June 26, 2009. Operating income decreased $3.3 billion to $(1.8) billion for the nine months ended June 26, 2009. The operating loss included an aggregate goodwill impairment charge of $2.6 billion relating to reporting units in our Electrical and Metal Products, ADT Worldwide, Fire Protection Services and Safety Products segments and intangible asset impairment charges of $64 million relating to assets at our ADT Worldwide and Safety Products segments for the nine months ended June 26, 2009. Additionally, lower volumes primarily in our Electrical and Metal Products and Safety Products segments negatively impacted operating income. The decrease included restructuring, asset impairment and divestiture charges, net of $37 million for the quarter ended June 26, 2009. Additionally, management estimates that $10 million of additional charges resulting from restructuring actions were incurred during the quarter ended June 26, 2009. The nine months ended June 26, 2009 included legacy legal settlement charges of $110 million as well as restructuring, asset impairment and divestiture charges, net of $147 million. Additionally, management estimates that $14 million of additional charges resulting from restructuring actions were incurred during the nine months ended June 26, 2009. Operating income for the quarter ended June 27, 2008 included restructuring, asset impairment and divestiture charges, net of $53 million and a legacy legal settlement charge of $9 million, offset by a credit of $7 million for class action recoveries. The nine months ended June 27, 2008 included Separation related costs of $5 million, restructuring, asset impairment and divestiture charges, net of $110 million and a legacy settlement charge of $29 million, offset by a credit of $7 million for class action settlement recoveries. Changes in foreign currency exchange rates negatively affected operating income by $35 million and $43 million for the quarter and nine months ended June 26, 2009.
Operating income decreased $45 million during the quarter ended June 26, 2009 compared to the same period in the prior year. The decline is attributable to decreased sales volume as discussed above. Operating margins were negatively impacted by restructuring, asset impairment and divestiture charges of $6 million for the quarter ended June 26, 2009. Additionally, management estimates that $5 million of additional charges resulting from restructuring actions were incurred during the quarter ended June 26, 2009. The same period in the prior year included restructuring and asset impairment charges of $12 million. Operating income also decreased by $3 million due to unfavorable changes in foreign currency exchange rates.
Corporate expense in the quarter ended June 26, 2009 was $31 million lower compared to the same period in the prior year. Corporate expenses for the quarter included $2 million of restructuring and divestiture charges. Corporate expense for the quarter ended June 27, 2008 included net charges of $4 million comprised of a $9 million charge for a legacy legal settlement and $2 million of restructuring charges partially offset by a credit of $7 million for class action settlement recoveries. The decrease in Corporate expense is related to savings realized through cost containment actions.
Read the The complete ReportTYC is in the portfolios of Michael Price of MFP Investors LLC, Wallace Weitz of Weitz Wallace R & Co, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, David Williams of Columbia Value and Restructuring Fund, Bill Nygren of Oak Mark Fund, Chris Davis of Davis Selected Advisers, Dodge & Cox, Donald Yacktman of Yacktman Asset Management Co., John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Richard Pzena of Pzena Investment Management LLC, Murray Stahl of Horizon Asset Management, Murray Stahl of Horizon Asset Management.
Tyco International Ltd. a diversified manufacturing and service company is the world\'s largest manufacturer and servicer of electrical and electronic components and undersea telecommunications systems the world\'s largest manufacturer installer and provider of fire protection systems and electronic security services has strong leadership positions in disposable medical products plastics and adhesives and is the largest manufacturer of flow control valves. (press release) TYCO INTERNATIONAL LTD. (SWITZERLAND) has a market cap of $13.63 billion; its shares were traded at around $28.8 with a P/E ratio of 10.1 and P/S ratio of 0.7. The dividend yield of TYCO INTERNATIONAL LTD. (SWITZERLAND) stocks is 2.8%.
Highlight of Business Operations:
Primarily as a result of changes in foreign currencies and volume decreases in our Electrical and Metal Products business, net revenue for the quarter ended June 26, 2009 decreased $975 million from $5.2 billion for the comparable period ended June 27, 2008 to $4.2 billion in the quarter ended June 26, 2009. Net revenue for the nine months ended June 26, 2009 decreased $2.1 billion from $14.9 billion for the comparable period ended June 27, 2008 to $12.8 billion in the quarter ended June 26, 2009. The significant appreciation of the U.S. dollar against most major currencies for the quarter and nine months ended June 26, 2009 over the comparable periods ended June 27, 2008 negatively impacted our revenue by $407 million and $1.3 billion, respectively, as nearly 50% of ourAll of our reportable segments experienced declines in operating income for both the quarter and nine months ended June 26, 2009. On a consolidated basis, operating income for the quarter and nine months ended June 26, 2009 declined $238 million to $339 million and $3.3 billion to $(1.8) billion, respectively, primarily as a result of lower sales volume of steel products at our Electrical and Metal Products segment. The operating loss included goodwill and intangible asset impairments of $2.7 billion for the nine months ended June 26, 2009. The decrease included restructuring, asset impairment and divestiture charges, net of $37 million for the quarter ended June 26, 2009. Additionally, in the quarter ended June 26, 2009 management estimates that $10 million of additional charges were incurred resulting from restructuring actions. The nine months ended June 26, 2009 included legacy legal settlement charges of $110 million as well as restructuring, asset impairment and divestiture charges, net of $147 million. Additionally, in the nine months ended June 26, 2009 management estimates that $14 million of additional charges were incurred resulting from restructuring actions. Additionally, the quarter and nine months ended June 26, 2009, were negatively impacted by $35 million and $43 million, respectively, due to unfavorable changes in foreign currency exchange rates.
In response to the economic downturn, cost containment actions have been initiated across all of our businesses and corporate. We are also pursuing cost savings through restructuring activities in fiscal 2009 and expect to incur restructuring and restructuring related charges of approximately $200 million in fiscal 2009, of which $34 million and $142 million was incurred during the quarter and nine months ended June 26, 2009, respectively. Additionally, management estimates that $10 million and $14 million of additional charges were incurred resulting from these restructuring actions during the quarter and nine months ended June 26, 2009, respectively. We believe these restructuring activities will strengthen our competitive position over the long term.
Operating income decreased $238 million to $339 million for the quarter ended June 26, 2009. Operating income decreased $3.3 billion to $(1.8) billion for the nine months ended June 26, 2009. The operating loss included an aggregate goodwill impairment charge of $2.6 billion relating to reporting units in our Electrical and Metal Products, ADT Worldwide, Fire Protection Services and Safety Products segments and intangible asset impairment charges of $64 million relating to assets at our ADT Worldwide and Safety Products segments for the nine months ended June 26, 2009. Additionally, lower volumes primarily in our Electrical and Metal Products and Safety Products segments negatively impacted operating income. The decrease included restructuring, asset impairment and divestiture charges, net of $37 million for the quarter ended June 26, 2009. Additionally, management estimates that $10 million of additional charges resulting from restructuring actions were incurred during the quarter ended June 26, 2009. The nine months ended June 26, 2009 included legacy legal settlement charges of $110 million as well as restructuring, asset impairment and divestiture charges, net of $147 million. Additionally, management estimates that $14 million of additional charges resulting from restructuring actions were incurred during the nine months ended June 26, 2009. Operating income for the quarter ended June 27, 2008 included restructuring, asset impairment and divestiture charges, net of $53 million and a legacy legal settlement charge of $9 million, offset by a credit of $7 million for class action recoveries. The nine months ended June 27, 2008 included Separation related costs of $5 million, restructuring, asset impairment and divestiture charges, net of $110 million and a legacy settlement charge of $29 million, offset by a credit of $7 million for class action settlement recoveries. Changes in foreign currency exchange rates negatively affected operating income by $35 million and $43 million for the quarter and nine months ended June 26, 2009.
Operating income decreased $45 million during the quarter ended June 26, 2009 compared to the same period in the prior year. The decline is attributable to decreased sales volume as discussed above. Operating margins were negatively impacted by restructuring, asset impairment and divestiture charges of $6 million for the quarter ended June 26, 2009. Additionally, management estimates that $5 million of additional charges resulting from restructuring actions were incurred during the quarter ended June 26, 2009. The same period in the prior year included restructuring and asset impairment charges of $12 million. Operating income also decreased by $3 million due to unfavorable changes in foreign currency exchange rates.
Corporate expense in the quarter ended June 26, 2009 was $31 million lower compared to the same period in the prior year. Corporate expenses for the quarter included $2 million of restructuring and divestiture charges. Corporate expense for the quarter ended June 27, 2008 included net charges of $4 million comprised of a $9 million charge for a legacy legal settlement and $2 million of restructuring charges partially offset by a credit of $7 million for class action settlement recoveries. The decrease in Corporate expense is related to savings realized through cost containment actions.
Read the The complete ReportTYC is in the portfolios of Michael Price of MFP Investors LLC, Wallace Weitz of Weitz Wallace R & Co, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, David Williams of Columbia Value and Restructuring Fund, Bill Nygren of Oak Mark Fund, Chris Davis of Davis Selected Advisers, Dodge & Cox, Donald Yacktman of Yacktman Asset Management Co., John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Richard Pzena of Pzena Investment Management LLC, Murray Stahl of Horizon Asset Management, Murray Stahl of Horizon Asset Management.
