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Tyco restating results to ’98

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PORTSMOUTH, N.H. — Tyco International Ltd. said Monday it will restate its financial results dating back to 1998 based on previously announced charges against earnings.

The restatements, which come after discussions with the Securities and Exchange Commission, will lower results for fiscal years 1998-2001 but improve them for 2002 and the first six months of this year, the company said in a statement.

"No new charges will be required in connection with the restatement, and the restatement will have no impact on the company's reported balance sheet as of March 31," Tyco said.

The company said the restatement will push back the charges, which were announced last month, to the historical periods to which they relate.

"Tyco does not anticipate that the restatement will have any adverse impact on its operating results or cash flows for the remainder of fiscal 2003 or future years," it said.

Based in Bermuda, the conglomerate has its U.S. headquarters in Portsmouth. It makes everything from coat hangers to fiber optic cable.

Tyco shares gained 27 cents Monday to close at $19.57 on the New York Stock Exchange. They dropped 16 cents in extended trading, after the restatements were announced.

Tyco has either restated results or taken accounting-related charges four times since October. That included $1.4 billion in charges announced May 1.

The company said it and the SEC are discussing whether more of the charges should be restated to prior periods, especially pretax charges of $364.5 million and $265.5 million involving its ADT security systems business.

The company also said its fiscal third-quarter earnings would be reduced by $152 million, or 7 cents per share, based on its repurchase of some debt. The repurchased debt was issued in June 1998 by a subsidiary, Tyco International Group, and was due in 15 years.

Tyco has annual revenues of about $36 billion.

Last year, Tyco was rocked by criminal charges against its two former top executives, both of whom have pleaded innocent. They are accused of looting $600 million from the company through unauthorized compensation and illicit stock sales.

A shakeup begun by new chief executive Ed Breen included replacing the entire board.