Tyco adjusts guidance for Fire & Security segment, shareholders approve of spinoffs
SCHAFFHAUSEN, Switzerland – Tyco, announced today that shareholders have approved the spinoffs of ADT and Flow Control International.
The company, which one year ago announced it would split into three public companies, expects to complete the distributions of equity interests to shareholders of record on Sept. 28.
Tyco also adjusted its 2012 fiscal fourth quarter guidance for the Fire and Security segment, from $2.75 billion down to $2.5 billion. Originally Tyco expected this segment to have an operating margin before special items expanding 50 basis points to 13.5 percent.
The adjustment is due to “aged receivables related to security contracts in China” that may not be collectible. As a result, the company expects to record a charge between $40 and $60 million to increase its reserve for these receivables. Based on revenue expected from these projects in the quarter, the company has decreased its revenue guidance. Due solely to that charge, the company expects to report an operating margin in its Fire and Security segment, before special items, of approximately 11.2 percent to 12 percent.