http://www.morningstar.com/earnings/45241685-tyco-international-ltd-tyc-q4-2012.aspx

Tyco International Ltd TYC
Q4 2012 Earnings Call Transcript

Transcript Call Date 11/14/2012

Operator: Welcome to the Tyco Fourth Quarter Earnings Conference Call. All participants have been placed on a listen-only mode until the question-and-answer session. Today’s call is being recorded. If you have any objections, please disconnect at this time.

I will now turn the call over to Antonella Franzen, Vice President of Investor Relations. You may begin.

Antonella Franzen - IR: Good morning, and thank you for joining our conference call to discuss Tyco's fourth quarter results for fiscal year 2012 and the press release issued earlier this morning.

With me today are Tyco's Chief Executive Officer, George Oliver; and our Chief Financial Officer, Arun Nayar.

I'd like to remind you that during the course of today’s call, we will be providing certain forward-looking information. We ask that you look at today's press release and read through the forward-looking, cautionary, informational statements that we've included there.

In addition, we will use certain non-GAAP measures in our discussions, and we ask that you read through the sections of our press release that address the use of these items. The press release issued this morning and all related tables, as well as the conference call slides can be found on the Investor Relations portion of our website at tyco.com. Please also note that we will be filing our Annual SEC Form 10-K in the next several days.

In discussing our segment operations, when we refer to changes in backlog and order activity, these figures exclude the impact of foreign currency. Additionally, references to our operating margins during the call exclude special items and these metrics are non-GAAP measures. Again, these non-GAAP measures are reconciled in the schedules attached to our press release.

As we discussed in our third quarter earnings call, our full year and fourth quarter of fiscal 2011 included an extra week of results compared to fiscal 2012. In order to more accurately reflect the underlying organic growth of the businesses, we have adjusted both organic revenue and orders growth to exclude the estimated impact of this additional week as we did in the prior year. All references to organic revenue and orders growth discussed in today's call exclude the estimated impact of the extra week.

As we completed the separation and subsequent merger of Flow Control with Pentair on September 28, our results reflect the operation of ADT and Flow Control as discontinued operations. As such, this earnings call will be focused on our continuing operations which we now report under the following three segments.

North America Installation and Services, Rest of World Installation and Services, which when combined represent our direct sales channel and Global Products, which drives our innovation and technology as well as the manufacturing of our fire protection, security and life safety products for both our internal and indirect sales channels.

Now, let me quickly recap this quarter's results. Revenue in the quarter of $2.7 billion decreased 2.5% year-over-year. The decline in revenue include 3 percentage point negative impact related to foreign currency. Additionally, the comparison was negatively impacted by the extra week of revenue in 2011, which offset the additional revenue related to acquisitions. Organic revenue grew 1% in the quarter.

Read our Earnings Call Transcript disclaimer.
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