RIF at ADT helped balance sheet
ADT's parent company, Tyco International, reported its Q3 earnings last week. Click here for a look at the press release. According to Bloomberg, cost and workforce reductions, which took place at ADT and elsewhere are having the intended effect. Here's their story From the story:
The company, [Tyco] which is run from New Jersey, pledged to reduce costs by $200 million during the 2009 fiscal year as the global recession hurts demand for its products. The company has cut its workforce by 5,000 this year, Chief Executive Officer Ed Breen said in May. Most of the cost reductions were at ADT, which pulled out of some less profitable regions. â€œWe are actively addressing our cost structure through both restructuring activities and tighter cost management, and these efforts were reflected in our margins,â€ Breen told investors on a conference call today. Tyco International rose 84 cents or 2.9 percent, to $29.64 at 4:15 p.m. in New York Stock Exchange composite trading. The shares increased 37 percent this year.Here's a story I wrote about cost reductions at ADT in April.