Johnson Controls has posted a 15% fiscal first quarter sales increase to US$8.4bn ($7.3bn in Q1 2009) and record income from business segments of $406m versus a Q1 2009 loss. It also booked record net income with earnings per share of $0.52 ($0.43 a share excluding non-recurring items).
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JCI said income from business segments in the 2010 first quarter totalled $406m compared with a loss of $310m (or a loss of $48m excluding non-recurring items) in the fiscal 2009 quarter.
Net income was $350m versus a year ago loss of $608m. Earnings per share of $0.52 in the first quarter of 2010 compared with a loss of $1.02 last year.
The 2010 quarter included a non-recurring tax benefit of $62m, or $0.09 per share.
“We achieved record results in the first quarter despite what is still a very challenging economic environment in all of our markets. We benefited from higher sales supported by the cost improvement initiatives we took over the past year,” said chairman and CEO Stephen Roell.
Automotive interior sales in the quarter rose 31% to $4.1bn versus $3.1bn last year due primarily to higher production volumes in Europe and North America.
North American revenues rose 14% while European sales were up 47%. Sales in China, mostly generated through unconsolidated joint ventures, more than doubled.
Segment income of $121m, compared with a loss of $219m (excluding non-recurring items) last year due to higher volumes, operational efficiencies and higher profitability of the automotive joint ventures.
Power Solutions [battery] sales in the first quarter of 2010 increased 15% to $1.3bn from $1.1bn reflecting higher aftermarket and original equipment unit shipments.
Aftermarket unit sales increased 9% due to new customers and improved markets. Higher global automotive production and incremental volume from customers resulted in a 19% increase in original equipment battery sales.
Power Solutions segment income was $181m versus $40m in the first quarter of 2009, which included a negative $50m inventory valuation charge. The higher 2010 income was due to higher volumes, improved capacity use and operational efficiencies.
Johnson Controls noted that in the first quarter it launched production of lithium-ion battery systems for the BMW 7-series hybrid and won a contract to supply lithium-ion hybrid batteries for Ford’s 2010 electric Transit van.
The supplier now forecasts 2010 revenues up 16% to $33bn versus $31bn previously and earnings per share of $1.70 – $1.75 ($1.35-$1.45).
Its automotive production assumption for North America is now 10.3m versus an earlier estimate of 9.8m
“Our markets are still well below their historic levels and the global economic environment remains challenging. We believe there will be meaningful improvements by the end of the fiscal year and we are well positioned to take advantage of the growth opportunities that will arise,” Roell added.
See also: FEATURE: Johnson Controls turns heads with its strong fourth quarter results
