Johnson Controls has reported record results for the third quarter of fiscal 2005 with earnings of $1.31 per diluted share (EPS) from continuing operations, up 21% over $1.08 for the prior year.
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Sales for the 2005 third quarter increased 9%, to $7.1 billion, from $6.5 billion in the 2004 quarter, reflecting growth by each of its businesses.
Operating income for the 2005 quarter was $368 million, up 7% from $343 million. Income from continuing operations increased 22%, to $255 million versus $209 million.
On April 1, 2005, a seating and interiors joint venture was deconsolidated due to a change in operating control. The deconsolidation, which had no impact on after-tax income from continuing operations, reduced third quarter sales and operating income as the company’s interest in the joint venture is now reported as equity income.
All 2004 amounts have been restated to reflect the 2005 divestitures of the company’s engine electronics and world services businesses.
For the fourth quarter and full year of 2005, Johnson Controls expects consolidated sales of approximately $7 billion, an estimated 8-9% increase over $6.4 billion for 2004; full-year sales of nearly $28 billion, up from $25.4 billion for 2004.
Fourth-quarter EPS from continuing operations of $1.48 to $1.52 are expected, approximately 21% to 25% higher than $1.22 for 2004. For the 2005 full-year, EPS from continuing operations of $4.39 to $4.43 are forecast, a 16-17% increase from $3.79 for 2004.
Capital expenditures in the 2005 third quarter were $104 million, down from $186 million the prior year. For the first nine months of 2005, capital expenditures totaled $396 million, down from the $595 million for the same period of 2004. The anticipated decline in spending from the unusually high 2004 level of capital projects also reflects the company’s focus on improving the productivity of its existing assets.
