BOSTON (Bloomberg) - Tyco International Ltd., the world's biggest maker of security and fire systems, beat analysts' third-quarter profit estimates as sales of industrial valves increased. The company said earnings this year will exceed its previous forecast.

Profit from continuing operations was $199 million, or 41 cents a share, in the quarter ended June 27, compared with a loss of $3.05 billion, or $6.17, a year earlier, Bermuda-based Tyco said in a statement on Thursday. Excluding some items, profit was 88 cents a share, exceeding the 67-cent average of 13 analyst estimates in a Bloomberg survey.

Sales climbed in all five units and operating income rose at least 10 percent in each, led by electrical and metal products, and flow control, the world's biggest industrial valve maker. Sluggish North American retail demand limited sales growth at the ADT security unit to five percent, while profit rose 17 percent.

Full-year profit excluding some items will be $2.97 to $2.99 a share, up from an earlier projection of $2.65 to $2.75, Tyco said. Analysts, on average, predicted 2008 earnings of $2.75 a share.

CEO Edward Breen is divesting slower- growing divisions and moving plants to lower-cost areas. Total operating margins of 12.1 percent exceeded the company's own forecast of 10 percent, with one-third of the difference coming from the ADT and fire protection services divisions, Breen said.

"This was clearly a good quarter and we continue to make solid progress refining our portfolio and carefully allocating our capital," Mr. Breen, 52, told investors on a conference call. "Our results were strong in almost every area, which was satisfying."

Revenue rose 11 percent to $5.2 billion. The year-ago loss stemmed from costs to settle a lawsuit and to split into three publicly traded companies in June 2007.

Profit at ADT, the largest unit, rose to $239 million on $2 billion in sales as margins improved 1.3 percentage points to 12 percent. Sales outside the US helped temper a one-percent decline in systems and installation revenue because of the slowing retail market.

Profit at the flow control segment, which sells valves to the oil and gas industry as well as municipalities, rose 23 percent to $152 million, helped by the sales of thermal control products. Profit at the electrical and metal division rose three-fold to $141 million on a 26-percent increase in revenue. Tyco was able to pass on price increases in steel and other metals for tubing and conduit.

The safety products division had a profit increase of 10 percent to $79 million on a 16-percent sales gain, while the fire protection division posted a 67 percent increase in earnings to $97 million on an eight-percent revenue gain.

l NEW YORK (Reuters) - Tyco Electronics Ltd., which makes connectors and other components for cars, airplanes and industrial uses, reported a higher-than-expected quarterly profit on Wednesday, but gave a forecast that disappointed some analysts.

The company posted net earnings of $330 million, or 68 cents per share, for the third quarter ended on June 27, compared with a year-earlier loss of $1.37 billion, or $2.75 per share, that included big charges.

Excluding litigation and restructuring charges, earnings in the latest quarter were 70 cents per share, three cents above Wall Street estimates.

Sales rose 19 percent to $3.9 billion, also ahead of forecasts.

Tyco Electronics' biggest division, which makes connectors and switches, posted a 15-percent sales increase as operating profit rose 33 percent. It cited strong demand from the industrial and communications sectors, as well as productivity improvements.