Tyco International Ltd. reported higher quarterly operating earnings on Tuesday, helped by sharply higher profit at its flow control division, which serves booming energy markets.
In June, the company completed the spinoff of Tyco Electronics and the health care business, now called Covidien.
Earnings from continuing operations before special items rose 10 percent to $277 million, or 55 cents per share, in the third quarter ended on June 29 from $252 million, or 49 cents per share, a year earlier.
Analysts on average expected profit of 47 cents per share, according to Reuters Estimates. Forecasts ranged from 29 cents to 52 cents as analysts tried to understand the new company, its growth prospects, tax structure and other factors.
Revenue from continuing operations, which strips out the divested businesses, was up 8 percent to $5.09 billion, compared with Wall Street forecasts for sales of $5.01 billion.
Tyco, whose divisions now include ADT security systems, fire and safety products, as well as valves as industrial controls, said four of its divisions posted higher quarterly sales, while sales fell in its electrical and metal products segment.
Operating profits fell at three divisions, including ADT where margins slid to 10.7 percent from 13.4 percent a year earlier.
Tyco's safety products segment reported a profit, reversing a year-earlier loss. The flow control segment, which makes valves, pipes and other products for the energy and water industries, reported a 22 percent sales increase and said operating profits jumped 43 percent, reflecting strong global demand.
Tyco said it expected sales would be up 6 percent to 7 percent in its fourth quarter and estimated an operating profit margin before special items of 9 percent to 9.5 percent.
Shares of Tyco, which closed Monday at $48, were down about 1 percent in premarket trading.
Tyco broke itself up to give investors a clearer choice and to move past its reputation as a scandal-ridden company.
(Reporting by Nick Zieminski)