Johnson Controls has reported record sales and earnings for the fourth quarter and full year 2004.
Operating income increased 12% to $1.3 billion for the year ended September 30, 2003, compared with the prior year’s $1.2 billion. Net income for fiscal 2004 was $818 million, up 20% from $683 million.
The net income increase was aided by higher equity income and a lower effective tax rate. Earnings per share for 2004 were 18% higher, reaching $4.24 compared with $3.60 for the prior year.
Sales totalled $26.6 billion, 17% higher. The growth in revenues reflects a 20% increase in automotive group sales of seating, interiors and batteries, and a 9% increase in sales by the controls group.
Included in 2004 selling, general and administrative expenses (SG&A), and recorded during the second quarter, was an $84.4 million non-cash gain on the transfer of certain pension obligations and related plan assets, associated with automotive group employees in Japan, to the Japanese government. Also recorded in SG&A in the second quarter were $82.4 million of restructuring costs involving workforce reductions and plant consolidations.
Sales for the three months ended September 30, 2004 increased 13% to $6.8 billion from $6.0 billion for the same period of 2003. Operating income was $414 million, up 15% from last year’s $360 million. Net income rose 24% to $273 million, up from $220 million for the fourth quarter of 2003. The increase was aided by a lower effective tax rate and lower “miscellaneous-net” expenses. Earnings per share increased 22% to $1.41 for 2004 from $1.16.