NEW YORK (AP) -- Tyco International Ltd. on Wednesday forecast higher sales and margins at its fire and security business this fiscal year.
The segment, which includes ADT Alarm Systems and various fire protection and security products, forecast revenue of at least $12 billion for the fiscal year ending Sept. 30 compared with $11.29 billion the year before.
It forecast an increase in operating margins of 1.3 percentage points to 2 percentage points from last year's 7.7 percent, which excludes the effect of potential divestitures and restructuring.
Free cash flow should climb to at least $1.3 billion from the $807 million reported in fiscal 2003.
Tyco made the projections at an investor meeting in New York to discuss its fire and security business.
Segment President Dave Robinson said the business is talking with potential buyers for its Sonitrol security unit. The business is good but competes with Tyco's important ADT brand and a sale may close soon, he said.
Most divestitures in the segment will be related to fire, with fewer in security, Robinson said. The segment -- one of five at Bermuda-registered conglomerate Tyco -- so far has sold four small operations, all outside the United States, he said.
Overall, Robinson said fire and security expects to divest about 25 businesses, worth some $1 billion in revenue, as part of a broader divestiture and restructuring program at its parent.
Fire and security is the main subject of the Tyco program unveiled in November. The segment is set to close 184 facilities and shed 5,000 jobs.
Under new management since 2002, when former Chief Executive L. Dennis Kozlowski resigned amid much scandal, Tyco has tried to show that it has moved to reform the company's culture, governance and operations. Tyco was an amalgamation of businesses acquired under its last CEO, and Tyco now wants to streamline itself and make operations more efficient and profitable.
The fire and security business, especially ADT, has been especially in focus, partly because it was the source of much of Tyco's past accounting irregularities.
Shares of Tyco were at $28.80 early Wednesday afternoon, down 45 cents, or 1.5 percent, on the New York Stock Exchange.
