Tyco Q4 Earnings Conference Call Nuggets: Europe and the Comcast Board
John Inch – Bank of America Merrill Lynch asked: Let’s start with Europe. You reported your results on an EMEA basis, but is there a way to isolate continental Europe? What are you seeing there and could you give us some margin color for security in Europe?
Edward D. Breen – Chairman and CEO responded: We’re not seeing any real change. If you put it in context, our revenues in Europe for the company–and just a yearly–are about $3.5 billion of $17.5 billion or so.
For the company, our organic growth in the quarter was 3 percent.
Europe has been our lowest region all along and it actually came in slightly above–something like 0.5 point above last quarter. I’m not seeing any change.
In our guidance for this new year, I am being a little cautious as you can see with our organic revenue of 4.5 to 5.5. We are concerned about some softening in Europe, but I would say we’ve seen nothing at this point.
Also, we had very nice margin movement in the security business, to your question about security and EMEA, this quarter. We now have the margins up to 12.7 percent.
This was a very nice move here during the last year.
Antonella Franzen – IR followed with the question: Did this compare to a margin of slightly below 12 percent in the third quarter?
Breen responded: Yes, and mid single-digits a year ago.
John Inch – Bank of America Merrill Lynch followed up : Why would the margin…
Breen responded: We’re just not seeing anything yet. Again, it is our lowest growth region but nothing new relative on what’s going on in the world.
Stepping Down from the Comcast Board
John Inch – Bank of America Merrill Lynch asked: I see you are stepping down from the Comcast (NASDAQ:CMCSA) Board. People may speculate but is there an official reason?
Edward D. Breen – Chairman and CEO responded: I think an 8-K had been filed and John has been precise but I’ll add a few things.
The separation of ADT into its own standalone company, which I plan on being a consultant with afterward and on the Board of the other two companies.
I have held conversations with cable operators, with (indiscernible) operators, with other players and industries that are somewhat associated around this. I don’t want any appearance of conflict as we move forward with the standalone security company.
That and the amount of work with the separation was really the decision behind it.