Johnson Controls has announced a big swing to loss on the back of lower production volumes and restructuring charges.
For the fiscal second quarter that ended March 31, the firm chalked up a net loss of $193m, compared with net income of $289m during the same quarter last year. Revenue fell to $6.3bn in the quarter, from $9.4bn a year earlier.
The second quarter results include restructuring charges of $230m.
"As we indicated three months ago, the second fiscal quarter was going to be challenging due to the depressed automotive production volumes. During the quarter, we implemented additional cost reduction initiatives and actions to enhance our liquidity position," said Stephen A. Roell, Johnson Controls Chairman and Chief Executive Officer.
Roell predicted improvement in the coming quarters.
"We started to see improvements in the financial performance of our Automotive Experience business toward the end of the second quarter, and we expect significantly lower operating losses in the third quarter.
"We believe the automotive improvement, combined with the solid profitability of our Building Efficiency and Power Solutions businesses, will enable us to report positive earnings for the remainder of 2009."
Sectors: Components, Financial
Companies: Johnson Controls
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