Industrial conglomerate Tyco International Inc. (NYSE: TYC) posted weaker than expected earnings for its fiscal second quarter on Tuesday, as the company incurs costs for a planned breakup later this year.
The company said net income fell 7 percent to $835 million for the quarter, or 41 cents per share, compared with $895 million, or 43 cents per share seen in the same period last year.
Overall, revenue rose by 7 percent to $10.8 billion, compared to the same quarter a year ago. It also saw organic revenue growth of 4.4 percent.
Analysts had expected earnings of 47 cents per share on $10.77 billion in revenue, according to a poll by Thomson Financial.
Despite an increase in revenue, profit dropped due to expenses related to a plan to split the company into three publicly traded firms later this year.
In January, the firm filed to divide itself into Tyco Healthcare, to be renamed Covidien, Tyco Electronics and Tyco International, which will include the company's fire security and engineered products unit.
Profit from continuing operations fell to $838 million, or 42 cents per share, compared to $960 million, or 46 cents per share a year ago.
Electronics and engineered products businesses helped soften the decline in computer and communication service provider markets. The units grew 10 percent, and 9 percent respectively.
Tyco said growth was strong in Europe and Asia. Its North American division saw a â€˜modestâ€™ drop in revenue, with the exception of â€˜strongâ€™ growth in its undersea telecommunications business.
Shares of the company fell slightly in pre-market trading, shedding 9 cents, or 0.27 percent to $32.72.