Tyco International shares continue decline

Tyco shares fell $1.73, or 8 percent, to close at $20.01 and earlier hit a new year low of $19.90. Tyco shares had closed 14 percent lower on Tuesday.

Tyco, which makes a range of products from security systems to valves, pipes and steel tubes, said Tuesday it expects earnings per share between $2.20 and $2.50 for fiscal 2009. It said falling steel prices are expected to cause trouble for its electrical and metal products unit that makes galvanized steel for construction in addition to other products.

The company also warned that currency translation could cut per-share earnings.

Analysts surveyed by Thomson Reuters expect earnings per share of $3.01 per share in the year ending September 2009.

Citi analyst Jeffrey T. Sprague cut his earnings-per-share estimate to $2.35 from $3.20 for fiscal 2009 and to $2.90 from $3.65 for fiscal 2010.

Sprague also cut his share price target to $24 from $42 and maintained his "Hold" rating.

Tyco's portfolio "still offers a semblance of relative stability" at several of the manufacturer's businesses, he said.

"However, macro pressures are weighing on the entire portfolio, which likely will keep a lid on the stock," he said.

Separately, Goldman Sachs analyst Terry Darling forecast earnings per share of $2.20 for fiscal 2009 and 2010. Previously, he forecast earnings per share $2.70 for 2009 and $2.65 for 2010.