Johnson Controls Reports 26% Increase in Fourth-Quarter 2007, Earnings per Share From Continuing Operations
26/10/2007 15:45
PR Newswire
MILWAUKEE, Wisconsin, October 26 /PRNewswire/ -- Johnson Controls, Inc. today reported record sales and earnings for its
2007 fourth quarter. Diluted earnings per share from continuing operations
totaled US$0.78, up 26% from US$0.62 last year.
Sales for the 2007 fourth quarter totaled US$9.0 billion, up 11% from
US$8.2 billion in 2006 as the company increased its share of its global
markets. Income from continuing operations was US$469 million versus US$368
million last year, an increase of 27% as a result of the higher revenues and
increased operational efficiencies.
For the 2007 fiscal year, Johnson Controls sales totaled US$34.6 billion
compared with US$32.2 billion for 2006, an increase of 7%. Income from
continuing operations increased 25% to US$1.3 billion. Diluted earnings per
share from continuing operations in 2007 were US$2.16 versus US$1.75.
Excluding a non-recurring tax benefit in the second quarter, 2007 diluted
earnings per share from continuing operations were US$2.10. Fiscal year 2007
is the company's 61st consecutive year of sales increases and 17th
consecutive year of earnings increases.
All earnings per share amounts reflect the company's 3-for-1 stock split
on October 2, 2007.
"We are pleased to deliver record results for the fourth quarter and for
the full fiscal year," said Chief Executive Officer Stephen A. Roell. "We
expect to continue to win share and grow at a faster pace than our underlying
industries through our innovation, cost advantages and world-class quality."
He continued, "It is a core part of our company's culture to understand
customers' emerging needs and to deliver unique, practical solutions. Our
employees around the world continue to show an outstanding commitment to our
customers, and I thank them for another record year."
Fourth Quarter Results
Building efficiency sales were US$3.6 billion, up 15% compared with 2006
revenues of US$3.1 billion. The increase reflects strong commercial buildings
markets globally and higher demand for the company's solutions to improve
energy efficiency and lower operating costs in non-residential buildings.
Segment income increased 23% to US$316 million from US$257 million as a
result of the higher revenues as well as cost structure improvements
associated with the company's branch office network and manufacturing
operations. The backlog of uncompleted commercial systems and services
contracts at September 30, 2007 was US$4.2 billion, an increase of 14% over
the prior year amount, reflecting continued market share gains.
Automotive experience sales in the quarter were US$4.2 billion, 3% higher
than US$4.0 billion in 2006. North American sales increased 2% and European
sales rose 5%, approximately in line with overall vehicle production levels.
Sales in the Asia/Pacific region declined 3% due to lower volumes in Japan.
Unconsolidated sales in China increased 48%. Segment income was US$183
million, up 24% from US$148 million last year as a result of a substantial
improvement in North American profitability and a continued strong
performance in Europe.
Power solutions sales increased 27%, to US$1.3 billion from US$1.0
billion last year due to higher unit prices resulting from the pass-through
of increased lead costs, as well as slightly higher unit shipments. Segment
income increased to US$161 million, up 7% from US$150 million in the 2006
fourth quarter due to the higher volume and improved operational
efficiencies.
The company said its net debt to total capitalization at September 30,
2007 was 30%, versus 35% at June 30, 2007.
2008 Outlook
On October 9, 2007, the company issued guidance on its expected financial
performance in 2008. Johnson Controls anticipates a sales increase of 10%, to
approximately US$38 billion. Income from continuing operations is estimated
to increase approximately 18%, to US$2.45 - US$2.50 per diluted share. The
company said the strong performance will be the result of its participation
in growth markets, its exposure to non-cyclical sectors, its global
capabilities and technology leadership as well as its cost discipline.
For the first quarter of 2008, the company expects diluted earnings per
share to increase 25% - 32% versus the 2007 first quarter, to a range of
US$0.35 to US$0.37.
"We have excellent visibility to our expected 2008 sales through our
large and growing backlogs of new business," Mr. Roell said. "We are
executing well on our growth strategies and expect a strong start to 2008."
Johnson Controls, Inc. ("the Company") has made forward-looking
statements in this document pertaining to its financial results for fiscal
year 2008 and beyond that are based on preliminary data and are subject to
risks and uncertainties. All statements other than statements of historical
fact are statements that are or could be deemed forward-looking statements
and include terms such as "outlook," "expectations," "estimates," or
"forecast." For those statements, the Company cautions that numerous
important factors, such as automotive vehicle production levels and
schedules, energy prices, the ability to mitigate the impact of higher raw
material costs, the strength of the U.S. or other economies, currency
exchange rates, cancellation of commercial contracts, changes to domestic and
foreign tax rates, labor interruptions as well as those factors discussed in
the Company's most recent Form 10-K filing (dated December 5, 2006) could
affect the Company's actual results and could cause its actual consolidated
results to differ materially from those expressed in any forward-looking
statement made by, or on behalf of, the Company.
Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity
to the places where people live, work and travel. By integrating
technologies, products and services, we create smart environments that
redefine the relationships between people and their surroundings. Our team of
140,000 employees creates a more comfortable, safe and sustainable world
through our products and services for more than 200 million vehicles, 12
million homes and one million commercial buildings. Our commitment to
sustainability drives our environmental stewardship, good corporate
citizenship in our workplaces and communities, and the products and services
we provide to customers. For additional information, please visit
http://www.johnsoncontrols.com.
Further information is available from:
Johnson Controls GmbH
Automotive Experience
Industriestrasse 20-30
51399 Burscheid
Germany
Astrid Schafmeister
Tel.: +49-2174-65-3189
Fax: +49-2174-65-3219
E-mail: astrid.schafmeister@jci.com
Ina Longwitz
Tel.: +49-2174-65-4343
E-mail: ina.longwitz@jci.com
Further information is available from: Johnson Controls GmbH, Automotive Experience, Industriestrasse 20-30, 51399 Burscheid, Germany; Astrid Schafmeister, Tel.: +49-2174-65-3189, Fax: +49-2174-65-3219, E-mail: astrid.schafmeister@jci.com; Ina Longwitz, Tel.: +49-2174-65-4343, E-mail: ina.longwitz@jci.com