Tyco International Ltd. reported Aug. 7 a $3.55 billion loss
for the third quarter as it pays for lawsuits and breakup costs tied to its
former convicted chief executive officer.
Tyco
settled a $3.31 billion shareholder lawsuit in the quarter over the misdeeds of
L. Dennis Kozlowski, the company’s
former CEO convicted of stealing $600 million from the company. Kozlowski was
sentenced in 2005 to serve at least eight years in prison, but the term could
be as long as 25 years.
The
loss compares with $868 million in net income for the third quarter of 2006. Third-quarter revenue increased 7.8 percent
to $5.09 billion from $4.72 billion, above the company’s forecast of 5.5
percent to 6.5 percent growth.
The results marked the first reported by Tyco
since completing the spin off of its health care and electronics businesses
last June. The results reported today only include Tyco International
divisions, which include fire and safety products, flow controls and security
systems.
Operating earnings for
Tyco’s flow control business increased 43 percent to $124 million on a 22
percent increase in sales.
Tyco said it expected sales
would be up 6 percent to 7 percent for the fourth quarter and estimated an
operating profit.
