Tyco Electronics profit tops forecasts
NEW YORK (Reuters) - Tyco Electronics Ltd (TEL.N: Quote, Profile, Research), which makes connectors and other components for cars, airplanes and industrial uses, reported a higher-than-expected quarterly profit on Wednesday, but gave a forecast that disappointed some analysts.
The company posted net earnings of $330 million, or 68 cents per share, for the third quarter ended on June 27, compared with a year-earlier loss of $1.37 billion, or $2.75 per share, that included big charges.
Excluding litigation and restructuring charges, earnings in the latest quarter were 70 cents per share, 3 cents above Wall Street estimates.
Sales rose 19 percent to $3.9 billion, also ahead of forecasts.
Tyco Electronics' biggest division, which makes connectors and switches, posted a 15 percent sales increase as operating profit rose 33 percent. It cited strong demand from the industrial and communications sectors, as well as productivity improvements.
But other markets are slowing, the company said.
"Over the past two months, we've seen order rates soften a bit, particularly in consumer-related segments, including automotive," Chief Executive Tom Lynch told analysts on a conference call.
The auto sector accounts for about 30 percent of the company's total sales.
Tyco Electronics will provide 2009 forecasts next quarter, Lynch said. Continued...
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