Tyco International posted a $2.32 billion quarterly loss today.
The losses were mostly due to charges associated with restructurings and the conglomerate's recent sale of CIT Group.
As Tyco works to reduce debt and restore investor confidence after the abrupt resignation of its longtime chairman, the conglomerate's cash machine sputtered in the fiscal third quarter that ended June 30th. Tyco also said fiscal 2003 earnings would be well below analysts' estimates.
Tyco's quarterly cash flow tumbled to $657 million, far below the company's initial estimate of $900 million to $1.1 billion, largely from stricter payment terms as suppliers fear a cash crunch at Tyco.
Tyco's ongoing operations, which includes diaper, ADT burglar alarms, and electronics, recorded net charges of nearly $1 billion before taxes.
Tyco took a goodwill write-off of $513 million before taxes on impaired telecommunications and engineered products and services assets. It also took charges at its ADT security and health care businesses.
Tyco shares are off nearly 80 per cent this year, underperforming the 29 per cent decline on the S&P 500 index.
The stock has been hammered by an about-face on corporate strategy, questions about its accounting, and the departure of chairman Mr Dennis Kozlowski just before he was indicted on charges he evaded paying $1 million in sales taxes.