High-tech manufacturing and services conglomerate Tyco International Ltd. said Wednesday that its fiscal fourth-quarter profit climbed 38 percent. But the company also said it found errors in its stock-option granting practices from 1999 through early 2002 that will result in $171 million in added after-tax expenses.

Tyco will restate results for prior periods in its fiscal year 2006 financial statement to reflect additional stock-based compensation expense.

The company also unveiled a restructuring program designed to improve its operating efficiency and leading to savings of $50 million in 2007 and $200 million the following year. It offered no immediate details on job cuts and plant closings.

Its shares rose more than 2 percent in morning trading.

Net income increased to $1.27 billion, or 62 cents per share, in the three months ended Sept. 29 from $917 million or 44 cents per share, during the same period last year.

This year's results include a 12 cents per share gain from special items.

Analysts polled by Thomson Financial were looking for fourth-quarter earnings of 49 cents per share. Those estimates typically exclude one-time items.

Quarterly revenue rose 8 percent to $10.76 billion from $9.94 billion, topping Wall Street's estimate of $10.5 billion.

Full-year earnings grew 22 percent to $3.71 billion, or $1.80 per share, compared with $3.03 billion, or $1.43 per share, in the prior-year period.

Full-year revenue climbed 4 percent to $40.96 billion from $39.31 billion last year.

The company said it anticipates first-quarter 2007 earnings from continuing operations in a range of 42 cents to 44 cents per share, excluding special items and restructuring charges.

On the stock options matter, Tyco said an audit committee reviewed its equity incentive plan practices and approvals between October 1999 and June 2006.

As a result, it said errors were found related to stock-option granting practices due to incomplete documentation, unintentional misapplication of generally accepted accounting principles and the absence of adequate control procedures in 1999 through early 2002.

Tyco will record compensation expense of $171 million after tax relating to grants awarded before the end of 2002.

Separately, Tyco identified an error related to the recognition of compensation expense under the company's employee stock purchase program in the U.K., resulting in additional expenses of about $20 million after tax.

Its shares rose 69 cents, or 2.3 percent, to $30.63 in morning trading on the New York Stock Exchange.