Johnson Controls Inc (JCI) has posted net income for its fiscal fourth quarter up 25% on last year, in line with analyst expectations. It also forecast that earnings would rise 30% in the next quarter, the first of its fiscal 2014.
Excluding restructuring and non-recurring items in the 2013 and 2012 fiscal fourth quarters, highlights (non-GAAP) include:
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- Net revenues of US$11.0 billion vs. US$10.4 billion in Q4 2012, up 6%
- Record net income of $657 million versus $526 million in Q4 2012, up 25%
The diversified group performed well in its major business segments.
“While the macro-economic environment continues to be challenging, each of our businesses generated top line growth in the fourth quarter. Even more importantly, they all had significant improvements in profitability. It is particularly pleasing that our efforts to improve execution and control costs are gaining traction,” said Alex Molinaroli, Johnson Controls chief executive officer.
‘Automotive Experience’ revenues in the quarter grew nine percent to US$5.5 billion versus US$5.0 billion last year on industry production growth of five percent in North America and a production decline of one percent in Europe. Revenues in China, which are primarily related to seating and generated through non-consolidated joint ventures, increased 20% to $1.6 billion, while industry production increased six percent versus last year.
JCI said its automotive activity income was US$233 million, 47% higher than the same quarter last year. Seating segment income increased by 58% while interiors reported a profit versus a loss last year due to improved operational efficiencies and the benefits of earlier restructuring actions. Electronics segment income declined 17 percent “due primarily to higher engineering”.
Johnson Controls also announced its intention to “explore strategic options to enhance the position and financial capacity of its Automotive Interiors business as part of the company’s previously stated intention to build its multi-industry portfolio.” Revenues from the Interiors business totaled US$4.2 billion in fiscal 2013, with a loss of US$13 million.
Johnson Controls noted that its Automotive Electronics segment results include the full-year profit contribution from the HomeLink business, which was sold on September 27, 2013 [to Gentex]. The company announced its intentions to sell its entire Automotive Electronics business earlier in 2013. An announcement regarding the sale of the remaining Electronics business is expected to be made by the end of the calendar year, the company said.
