Tyco Flow Control Reports Second Quarter Earnings

Tyco Flow Control revenue of $899 million declined 3% in the quarter with an organic revenue decline of 13%. Organic revenue growth of 2% in Thermal Controls was more than offset by a 19% decline in the Valves business and a 7% decline in Water. Backlog of $1.6 billion was flat on a quarter sequential basis excluding the impact of foreign currency.

Operating income was $93 million and the operating margin was 10.3%. Special items of $8 million consisted primarily of restructuring charges. Operating income before special items was $101 million and included a charge of $9 million for an anticipated loss on a project retained from the 2008 divestiture of Earth Tech, Inc. The operating margin before special items decreased to 11.2% as the benefits from cost-containment and restructuring actions were more than offset by the impact of the organic revenue decline and product mix. More…