In a filing to the US SEC confirming its fourth quarter results (period ended September 30), Johnson Controls revealed that its automotive division has US$2.5bn of backlog business to be executed within the next three fiscal years.
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However, it said that the backlog figure at the end of September compares with US$4.5bn a year earlier, noting that the decrease is ‘primarily due to lower industry volumes in North America and Europe and program cancellations and/or deferrals by our OE customers’.
The automotive backlog is generally subject to a number of risks and uncertainties, such as related vehicle production volumes, the timing of related production launches and changes in customer development plans, JCI said.
Automotive sales in the quarter declined 14% to US$3.5bn versus US$4.1bn last year due to lower production volumes in North America and Europe.
However, JCI said that automotive returned to profitability in the fourth quarter with segment income of US$77m due primarily to the company’s improved cost structure.
See also: US: Johnson Controls Q4 net down but auto unit profits
