Tyco International Ltd.'s telecom and electronics unit outpaced the conglomerate's three remaining unit during the fiscal 2000 third quarter with a 128% rise in operating profit as the group's profit margins strengthened and newly acquired units recorded strong sales growth.
Tyco, Pembroke, Bermuda, said operating profits at its telecom and electronics business more than doubled to $811.7 million in the quarter ended June 30, from $356.8 million. Sales rose 66%, to $3.3 billion from $2 billion in the year-ago quarter.
Companies acquired in the fiscal 1999 period-including Raychem, Siemens Electromechanical components and Praegitzer-and several new high-speed connectors, passive and active fiber optic components introduced during the period gave the unit a lift, Tyco said.
"The integration of the acquisitions we completed this year have served to enhance our performance, and will provide for continued improvements as we complete this fiscal year and move into fiscal year 2001," said Dennis Kozlowski, Tyco's chairman and chief executive, in a statement.
Tyco's overall sales rose 28%, to $7.4 billion from $5.8 billion in the year-ago comparable period, while net income climbed 370%, to $997.3 million, or 58 cents a share, from $211.7 million, or 13 cents per share, in the third quarter of the company's fiscal 1999 period.
The company's telecom and electronics business accounted for 43% of overall sales and 49% of total operating profit, up from about 32%, in the year-ago quarter.
"Operating profits more than doubled due to higher margins at Tyco Electronics as both volume and pricing continued to improve and the benefits from rationalizing acquired facilities were realized," the company said.