MILWAUKEE , Jan. 18 /PRNewswire-FirstCall/ -- Johnson Controls, Inc.
(NYSE: JCI) today reported record sales and income from continuing operations
for the first quarter of fiscal 2008, with diluted earnings per share from
continuing operations increasing 39% to $0.39 from $0.28 last year (adjusted
for a 3-for-1 stock split effective October 2 , 2007). The company also
reconfirmed its October earnings guidance of 18% year-over-year growth.
Chairman and Chief Executive Officer Stephen A. Roell said, "We continue
to deliver record results with strength in both the domestic markets as well
as higher growth international markets. Building efficiency continues to
generate double-digit sales and earnings improvements and automotive
experience profitability is increasing as planned. Our exposure to global
markets and focus on cost and quality improvements continue to positively
impact our performance. We believe we are on track to achieve another year of
strong sales and earnings growth."
First-Quarter 2008 Results
Sales for the quarter ended December 31, 2007 rose 16% to a record
$9.5 billion from $8.2 billion last year, reflecting growth by all three
businesses. Segment income was $374 million, up 25% from $300 million in the
2007 quarter, as a result of the higher volume and margin expansion. Income
from continuing operations was $235 million, 40% higher than the prior year's
$168 million due to the higher segment income and a lower effective tax rate.
Building efficiency sales increased 11% to $3.2 billion from $2.9 billion
due to increased global demand for the company's offerings for nonresidential
buildings that improve energy efficiency and reduce greenhouse gas emissions.
The company reported strong revenue increases for its systems, services and
global workplace solutions revenues. Segment income increased 33% to
$163 million from $123 million in 2007, due to the higher global volumes and
operational efficiencies. The backlog of uncompleted contracts at December
31, 2007 was $4.4 billion, up 13% versus the previous year, reflecting strong
demand in domestic and international markets.
Power solutions sales were up 55% to $1.7 billion from $1.1 billion. The
increase was primarily due to higher prices resulting from the pass-through of
increased lead costs, as well as increased unit shipments. Segment income
decreased 6% to $133 million from $142 million in the 2007 quarter, which
included a one-time benefit of $11 million. Income in the 2008 quarter was
impacted by additional investments in the company's hybrid vehicle battery
capabilities. Johnson Controls is expected to launch production of the
industry's first lithium-ion battery systems later in the year.
Automotive experience sales for the first quarter of 2008 totaled
$4.6 billion, up 9% from $4.2 billion. Revenues in Europe increased 14% while
North American sales were 5% higher. Industry light vehicle production in
Western Europe and North America was approximately 5% and 1% higher,
respectively, than the prior year amounts. Unconsolidated sales in China
increased over 40% reflecting the strong vehicle production environment and
new business. Segment income more than doubled to $78 million versus
$35 million for the prior year quarter. In North America , income increased to
$10 million from a loss of $52 million a year ago due to operational
efficiencies and improved pricing.
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