Tyco International plc (NYSE:TYC) Q1 2015 Earnings Conference Call - Final Transcript

Jan 30, 2015 • 08:00 am ET


Tyco International plc (NYSE:TYC) Q1 2015 Earnings Conference Call - Final Transcript


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Welcome to the Tyco First Quarter 2015 Earnings Conference Call. All participants have been placed on a listen-only mode until the question-and-answer session. [Operator Instructions] Today's conference 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

Good morning and thank you for joining our conference call to discuss Tyco's first quarter results for fiscal year 2015 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 would 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 our non-GAAP measures in our discussion and we ask that you read through the sections of our press release that addressed the use of these items. The press release issued this morning and all related tables, as well as the conference call slides, which George and Arun will refer to, can be found on the investor relations portion of our website at tyco.com. Please also note that we will be filing our quarterly SEC Form 10-Q later today.

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 operating margins during the call excludes special items and this metric is a non-GAAP measure and is reconciled in the schedules attached to our press release.

Now, let me quickly recap this quarter's results. Revenue in the quarter of $2.48 billion declined 1% year-over- year on a reported basis. Organic revenue growth of 2% and a 1% benefit from acquisitions was more than offset by a 4% negative impacts related to changes in foreign currency exchange rate.

Earnings per share from continuing operations attributable to Tyco ordinary shareholders was $0.38, and include a net charges of $0.11 related to special items. These special items related primarily to restructuring and repositioning charges. Earnings per share from continuing operations before special items was $0.49.

Now, let me turn the call over to George.

George R. Oliver

Thanks, Antonella, and good morning everyone. We are off to a solid start as we enter the final year of our initial three-year plan as a new Tyco. Although the economic environment in certain regions is shaping up to be a bit more challenging than we had initially expected. The execution of our growth strategy and our disciplined capital allocation position us to accelerate top line growth, expand operating margins and deliver strong earnings growth in 2015.

Our growth strategy is supported by internal initiatives within our control driven by our transformation into an integrated fire and security operating company. We have a proven track record of delivering productivity and are beginning to change how we do