Johnson Controls on Tuesday reported fiscal 2009 fourth quarter net sales of US$7.9bn and diluted earnings per share of $0.47. Segment income was $409m versus $605m in the 2008 fourth quarter. Excluding non-recurring items, earnings per share were $0.52 compared with $0.73 in the 2008 period.
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The $0.52 earnings per share was consistent with quarterly guidance issued earlier this month.
Net income in the 2009 fourth quarter was $300m ($0.47 per diluted share), compared with $16m ($0.03 per diluted share) a year ago.
“We entered 2009 with two of our markets already depressed – North American automotive and residential HVAC. As the year progressed, we navigated through customer and supplier bankruptcies and deteriorating global economic conditions,” said Johnson Controls chairman and CEO Steve Roell. “We responded throughout the year with actions to significantly improve our cost structure and liquidity.”
‘Automotive experience’ (interiors) sales in the quarter declined 14% to $3.5bn versus $4.1bn last year due to lower production volumes in North America and Europe. Excluding the impact of foreign currency, revenues declined 12%.
The unit returned to profitability in the fourth quarter with segment income of $77m due primarily to reduced costs.
‘Power solutions’ (batteries) sales in the fourth quarter were $1.1bn, down 17% from $1.3bn in the year ago period. Excluding the impact of lower lead prices and currency translation, sales were comparable to last year, as were unit shipments. Segment income was $194m in the fourth quarter, up 37% from $142m last year as a result of operational efficiencies and a favourable product mix.
Johnson Controls said that in the fourth quarter it received the single largest grant, $299m, from the United States Department of Energy under the American Recovery and Reinvestment Act (ARRA) to build domestic manufacturing capacity for advanced batteries for hybrid and electric vehicles. It also said it had secured new hybrid battery agreements with Jaguar Land Rover and Volkswagen and that it expects to announce additional new business in early 2010.
For the full year the company booked a $318m operating loss versus a $1.32bn profit in 2008 on sales of $28.5bn ($38bn).
Net loss was $338m compared with a $979m profit a year ago.
For the 2010 financial year Johnson Controls anticipates a sales increase of 9%, to approximately $31bn. Earnings are expected to increase to approximately $1.35 – $1.45 per diluted share, significantly higher than 2009. Sales, earnings and margin improvements are expected in all three of its businesses in 2010.
