Wireless communications component manufacturer Tyco Electronics has reported a 31% decline in profit for its fourth quarter ended September 2007. The net profit decreased to $256m from $369m in the previous year period due to restructuring and separation costs.
The company reported fourth quarter revenues of $3.6 billion, a year-on-year increase of 11% from $3.2 billion in 2006. Its operating profit increased by 180% to $443m compared to $158m in 2006. Earnings per share decreased to $0.51 compared to $0.74 in the previous year.
The company took $59m in restructuring charges in the recent quarter, compared with $5m in the same quarter of 2006. It also reported a $20m charge related to the separation from Tyco International.
All reportable segments of the company showed year-on-year increase in revenues. Electronic components segment revenues increased 8% to $2.6 billion, while network solutions and wireless systems segments revenues increase by 13% and 1%, respectively, to $522m and $254m, respectively. The undersea telecommunications segment recorded a 120% increase in revenues, reaching $213m. International markets accounted for 60% of the company’s total sales.
Cash provided by operating activities was $655 million in the quarter, an increase of 11% over the prior-year quarter, while the free cash flow was $545 million. The increase was largely due to improved inventory performance compared to the prior-year quarter.
For the full year 2008, the company expects sales growth of 6% to 8% and EPS from continuing operations of $2.23 to $2.33, including restructuring and separation related costs of approximately $130 million.
The competitors of Tyco Electronics have also reported losses in the quarter ended September 2007, with Molex recording a 30% year-on-year decline in net loss to $53.3m from $76.5m in 2006. Its revenues decreased 4.4% to $792.6m compared to $829.5m in 2006.
Source: ComputerWire daily updates