Income before non-recurring items, extraordinary items and cumulative effect of accounting change for the nine months ended June 30, 2001 rose to $3.5 billion, or $1.94 per diluted share, a 32 percent increase over last year's first nine months' earnings of $2.6 billion, or $1.54 per diluted share. Revenues for the first nine months of fiscal 2001 increased to $26.2 billion, 24 percent higher than last year's first nine months' revenues of $21.1 billion. After giving effect to non-recurring items, diluted earnings per share before extraordinary items and cumulative effect of accounting change were $1.89, or $3.4 billion, for the first nine months of fiscal 2001 compared to $1.52, or $2.6 billion, in fiscal 2000.
"Tyco's strong results in the quarter exemplify our longstanding strategy of building our base of recurring and service revenues and non-cyclical businesses. Expansion of our recurring revenue base in the Fire and Security segment and growth in our Healthcare business more than offset weakness in Electronics," said L. Dennis Kozlowski, Chairman and Chief Executive Officer of Tyco.
"The strength and diversity of our business mix makes us comfortable with the outlook for Tyco during the remainder of fiscal 2001 as well as fiscal 2002," Kozlowski continued. "Assuming current business trends, we expect to achieve our previously stated guidance of $2.77-2.78 earnings per share and, while it's early to make specific predictions, we believe that $3.45 per share is a reasonable estimate for fiscal 2002."
"On the acquisition front, we remain very much on plan. The acquisition of CIT was completed on June 1, 2001, and its integration is proceeding smoothly. Cost reductions have been implemented, less desirable assets are being divested, and the opportunities for financing the needs of Tyco's customer base are being actively pursued. We are also on plan with integration and cost reductions at SecurityLink and we look forward to closing the C.R. Bard acquisition during the fourth calendar quarter," Kozlowski concluded.
The quarterly segment profits and margins for the Company's Electronics, Healthcare and Specialty Products, Fire and Security Services and Telecommunications segments that are presented in the discussions below are operating profits before non-recurring items and goodwill amortization. Results for the Company's Financial Services subsidiary are pre-tax profits before goodwill amortization for the month of June (CIT was acquired on June 1, 2001). All dollar amounts are stated in millions. We have reclassified our Flow Control results for the prior year to the Fire and Security and Electronics segments to conform with current internal reporting structures.