On June 29, Motley Fool Inside Value recommendation Tyco International (NYSE:TYC) completed its long-anticipated breakup into three companies. It also announced the settlement of a class action lawsuit that was hanging over its head. On Tuesday, Tyco reported third-quarter results, giving some initial insight into its prospects.

A little more than a month ago, Tyco completed the spinoff of its health-care and electronics businesses, which are now referred to as Covidien (NYSE:COV) and Tyco Electronics (NYSE:TEL). What remains with Tyco are five reporting segments, including ADT electronic security, fire protection services, and safety, electrical, and metal products units.

ADT is the most identifiable brand, accounting for about 38% of total third-quarter revenue, and it anchored the company's total sales growth of 8%. Flow control deals with the stodgy business of selling and servicing valves, pipes, and other industrial products, and it experienced the highest sales growth -- 22% -- and was also one of the most profitable segments, based on operating margin. Management said that it expects operating margin to reach 9% to 9.5% next quarter.

In total, Tyco's quarter looked decent from an operating basis, but spinoff costs, losses from the spun-off businesses, and a hefty $2.9 billion settlement related to the tainted Dennis Kozlowski era were the primary culprits behind the astounding $3.5 billion loss on the bottom line. Fortunately, the current management team has worked to shore up the balance sheet -- the company ended the quarter with more than $1 billion in cash -- and said it was "comfortable" with $4.1 billion in long-term debt.

During the earnings conference call, management said that the recent class action settlement will lay to rest most of its obligations, and it expects much lower expenses related to splitting into three companies. For the fourth quarter, it expects sales growth of 6% to 7%, and it plans to update investors on Tyco's fiscal 2008 prospects during the next earnings conference call.

Overall, it's still too early to tell how Tyco, Covidien, or Tyco Electronics will perform on a stand-alone basis. However, company splits can bring welcome opportunities for cost-cutting, margin improvements, and a renewed focus on core operations. It will be interesting to see how Tyco performs as it puts its tainted past behind it and begins to compete with archrivals Brinks (NYSE:BCO), Honeywell (NYSE:HON), Flowserve (NYSE:FLS), and other diversified industrial firms.                                                

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.