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US: Johnson Controls reports 26% gain in earnings

By just-auto.com editorial team | 23 October 2007

Johnson Controls, Inc. today reported record sales and earnings for its 2007 fourth quarter. Diluted earnings per share from continuing operations totalled US$0.78, up 26% from US$0.62 last year.

Sales for the 2007 fourth quarter totalled US$9.0bn, up 11% from US$8.2bn in 2006 as the company increased its share of its global markets. Income from continuing operations was US$469m versus US$368m last year, an increase of 27% as a result of the higher revenues and increased operational efficiencies.

For the 2007 fiscal year, Johnson Controls sales totalled US$34.6bn compared with US$32.2bn for 2006, an increase of 7%. Income from continuing operations increased 25% to US$1.3bn. Diluted earnings per share from continuing operations in 2007 were US$2.16 versus US$1.75.

Excluding a non-recurring tax benefit in the second quarter, 2007 diluted earnings per share from continuing operations were US$2.10.

"We are pleased to deliver record results for the fourth quarter and for the full fiscal year," said Chief Executive Officer Stephen A. Roell.

"We expect to continue to win share and grow at a faster pace than our underlying industries through our innovation, cost advantages and world-class quality."

Automotive sales in the quarter were US$4.2bn, 3% higher than US$4.0bn in 2006. North American sales increased 2% and European sales rose 5%, approximately in line with overall vehicle production levels. Sales in the Asia/Pacific region declined 3% due to lower volumes in Japan.

Unconsolidated sales in China increased 48%.

For the first quarter of 2008, the company expects diluted earnings per share to increase 25% - 32% versus the 2007 first quarter, to a range of US$0.35 to US$0.37.

"We have excellent visibility to our expected 2008 sales through our large and growing backlogs of new business," Mr. Roell said. "We are executing well on our growth strategies and expect a strong start to 2008."