Income before extraordinary items for the first half of fiscal 1998 rose to $517.0 million, or 91 cents per share, a 49% increase over last year's per share earnings of 61 cents. Revenues for the first half increased to $5.54 billion, 20% higher than last year's $4.62 billion.
"The strength of these results, marking another record quarter for Tyco, demonstrates the continued excellent performance of our core businesses and the success of the assimilation of recent acquisitions into our existing operations," said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "We expect even further benefits from the integration of these acquisitions, supplemented by additional earnings as our recent acquisitions of Sherwood - Davis & Geck and CONFAB, and the proposed acquisition of Wells Fargo Alarm are integrated into Tyco's Disposable and Specialty Products and Fire and Security Services units. Tyco's internal growth prospects continue to be enhanced by our expanding geographic presence and our broadening product lines, as well as our focus on productivity enhancements to improve operating margins."
Disposable and Specialty Products
Earnings at Tyco's Disposable and Specialty Products group grew to $149.4 million, a 35 percent increase over the $110.7 million reached a year ago. Sales for the segment grew to $785.6 million versus last year's $646.7 million. Kendall's healthcare operations again reported strong earnings in all areas, including the recently acquired Sherwood operations. These results reflect a commitment to ongoing productivity improvements and lower operating costs, as well as an expanded base of product offerings.
Fire and Security Services
At Tyco's Fire and Security Services group, quarterly earnings increased 41 percent to $149.8 million versus $106.0 million last year. Sales reached $1.10 billion compared to $1.00 billion in the year earlier period. Tyco's continued emphasis on service and recurring revenues in its fire protection and security businesses on a worldwide basis is providing both increased sales and operating margins. Additionally, the recent integration of Holmes Protection and the announced acquisition of Wells Fargo Alarm will provide additional opportunities for increased sales and higher operating margins.
Flow Control
Quarterly earnings at the Tyco Flow Control group increased 25 percent to $73.4 million from $58.5 million last year. Sales were $548.8 million compared to the prior year's $537.3 million. Increased sales volume in all businesses within the group was partially offset by the effect of foreign currency fluctuations. Earnings increased across all business and geographic areas in the group, including Allied, Mueller, Grinnell and Keystone.
Electrical And Electronic Components
At Tyco's Electrical and Electronic Components group, which includes the results of Tyco Submarine Systems, acquired in July, 1997, earnings increased to $92.5 million versus the $28.8 million in the same quarter last year. Sales rose to $421.9 million compared with $145.1 million in the prior year. Tyco's Printed Circuit Group also had strong increases in both sales and earnings reflecting healthy organic growth coupled with manufacturing productivity improvements.
Tyco International Ltd. a diversified manufacturing and service company, is the world's largest manufacturer and installer of fire protection systems, the largest provider of electronic security services, and has strong leadership positions in disposable medical products, packaging materials, flow control products, electrical and electronic components and underwater telecommunications systems. The Company operates in more than 75 countries around the world and will have annual revenues in excess of $13 billion.
Forward Looking Information
Certain statements in this release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All forward looking statements involve risks and uncertainties. In particular, any statements contained herein regarding the consummation and benefits of future acquisitions, as well as expectations with respect to future sales, operating efficiencies and product expansion, are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of the Company, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward looking statements include, among other things, overall economic and business conditions, the demand for the Company's goods and services, competitive factors in the industries in which the Company competes, changes in government regulation and the timing, impact and other uncertainties of future acquisitions.