Security systems, valves, and fire protection equipment maker Tyco International
Let's dig deeper.
Construction and architectural billing has been on the rise over the past quarter. This is an important indicator for industries dealing in related products such as electric and systems security. The improving construction industry boosted demand (although demand remains volatile). Compared to the same quarter last year and excluding results of Tyco's sale of a majority interest of its electrical and metal products business, Tyco's sales were up 14% to $4.69 billion, beating the market expectation of $4.51 billion.
All three of the company's businesses -- security, fire protection, and flow control -- saw double-digit revenue growth. The security solution business, which accounts for nearly half of Tyco's sales, grew 11%. Benefited by a growing infrastructure, Honeywell International's
Flow-control products maker Flowserve
Tyco's net income increased to $402 million, an impressive 50% increase over last year. Earnings per share at $0.92 beat the Street's $0.86 per share view. Over the past year, Tyco has spent $1.3 billion on stock buybacks and is continuing to do so.
In fiscal 2012, Tyco expects to earn an average revenue of $17.7 billion, which is a little below analysts' expectations of $17.9 billion. Whether Tyco is successful in splitting itself into three separate companies will determine the future for the leftover security and fire-suppression systems company.
The Foolish bottom line
Tyco's bottom line has benefited largely from greater demand. The company remains fundamentally strong. Tyco's better-than-expected performance comes as no surprise.