Tyco net rises 29% in Q3

Aug 2 | Updated: Aug 3 2005, 05:30am hrs
Tyco International Ltd, the worlds biggest maker of electronic connectors, said third-quarter profit rose 29%. The conglomerate cut its 2005 profit forecast because of a weak demand for automotive electronics and lower prices for steel tubing and casing.

Net income in the period ended July 1 climbed to $1.19 billion, or 56 cents a share, from $923 million, or 43 cents, a year earlier, bolstered by asset sales. Revenue rose a less-than-estimated 3.3% to $10.6 billion, the Pembroke, Bermuda-based company said in a statement.

Chief executive officer Edward Breen cut the 2005 forecast because of lower prices and volumes in its engineered products unit, North Americas largest supplier of steel tubing. Weaker-than-expected results from the European auto market, which accounts for about 25% of sales in the companys electronics business, will also hurt profit.

Tyco reduced its annual profit forecasts excluding some costs and gains to $1.85 to $1.87 a share, from $1.88 to $1.93 a share.