Tyco International plc (Ireland) Ordinary Share (NYSE:TYC) Board of Directors approved a 14% increase in the quarterly dividend to $0.205 a share. The company posted 2Q2015 earnings from continuing operations came at $0.55 a share excluding special items. The GAAP earnings came at $0.43 a share. The revenue surged 4% to $2.4 billion excluding the impact of cross currency rates. As per the report, 2% increase came from organic growth and 2% from acquisitions.
In 2Q2015, Tyco International concluded the purchase of Industrial Safety Technologies, a global leader firm in gas and flame detection. It projected the earnings in 3Q to come in a range of $0.55 per share to $0.57 per share. The earnings per share for FY2015 is expected to come in a range of $2.30 to $2.40 compared to initial forecast of $2.23 to $2.27 per share. The forecast is reduced due to headwinds arising from foreign currency exchange rates. The sharp drop in the oil and gas market also will have an impact on the earnings per share.
The expert view
George R. Oliver, the CEO of Tyco, said that the management continued to offer strong profitability in 2Q, with EPS surging 17% YOY before special items. The segment operating margin extended 50 basis points measured on a normalized basis. The productivity measures and restructuring benefits were offset by geographies mix leading to growth.
He added that looking ahead to FY2015, despite existing headwinds from the sharp plunge in the oil and gas segment, and the stronger U.S. currency, the management anticipates delivering EPS growth excluding special items of 12%-14%. The focus is on to make investments to extend the technology and capabilities. The required measures will be taken to streamline the operations. All the efforts will position the company to achieve double-digit earnings growth in FY2015.
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