Johnson Controls reports 26% increase in fourth-quarter 2007, earnings per share from continuing operations
Geschrieben am 26-10-2007 |
Milwaukee, Wisc. (ots) - Johnson Controls, Inc. today reported record sales and earnings for its 2007 fourth quarter. Diluted earnings per share from continuing operations totaled $0.78, up 26% from $0.62 last year.
Sales for the 2007 fourth quarter totaled $9.0 billion, up 11% from $8.2 billion in 2006 as the company increased its share of its global markets. Income from continuing operations was $469 million versus $368 million 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 totaled $34.6 billion compared with $32.2 billion for 2006, an increase of 7%. Income from continuing operations increased 25% to $1.3 billion. Diluted earnings per share from continuing operations in 2007 were $2.16 versus $1.75. Excluding a non-recurring tax benefit in the second quarter, 2007 diluted earnings per share from continuing operations were $2.10. Fiscal year 2007 is the company's 61st consecutive year of sales increases and 17th consecutive year of earnings increases.
All earnings per share amounts reflect the company's 3-for-1 stock split on October 2, 2007.
"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."
He continued, "It is a core part of our company's culture to understand customers' emerging needs and to deliver unique, practical solutions. Our employees around the world continue to show an outstanding commitment to our customers, and I thank them for another record year."
Fourth Quarter Results
Building efficiency sales were $3.6 billion, up 15% compared with 2006 revenues of $3.1 billion. The increase reflects strong commercial buildings markets globally and higher demand for the company's solutions to improve energy efficiency and lower operating costs in non-residential buildings. Segment income increased 23% to $316 million from $257 million as a result of the higher revenues as well as cost structure improvements associated with the company's branch office network and manufacturing operations. The backlog of uncompleted commercial systems and services contracts at September 30, 2007 was $4.2 billion, an increase of 14% over the prior year amount, reflecting continued market share gains.
Automotive experience sales in the quarter were $4.2 billion, 3% higher than $4.0 billion 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%. Segment income was $183 million, up 24% from $148 million last year as a result of a substantial improvement in North American profitability and a continued strong performance in Europe.
Power solutions sales increased 27%, to $1.3 billion from $1.0 billion last year due to higher unit prices resulting from the pass-through of increased lead costs, as well as slightly higher unit shipments. Segment income increased to $161 million, up 7% from $150 million in the 2006 fourth quarter due to the higher volume and improved operational efficiencies.
The company said its net debt to total capitalization at September 30, 2007 was 30%, versus 35% at June 30, 2007.
2008 Outlook
On October 9, 2007, the company issued guidance on its expected financial performance in 2008. Johnson Controls anticipates a sales increase of 10%, to approximately $38 billion. Income from continuing operations is estimated to increase approximately 18%, to $2.45 - $2.50 per diluted share. The company said the strong performance will be the result of its participation in growth markets, its exposure to non-cyclical sectors, its global capabilities and technology leadership as well as its cost discipline.
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 $0.35 to $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."
Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal year 2008 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact are statements that are or could be deemed forward-looking statements and include terms such as "outlook," "expectations," "estimates," or "forecast." For those statements, the Company cautions that numerous important factors, such as automotive vehicle production levels and schedules, energy prices, the ability to mitigate the impact of higher raw material costs, the strength of the U.S. or other economies, currency exchange rates, cancellation of commercial contracts, changes to domestic and foreign tax rates, labor interruptions as well as those factors discussed in the Company's most recent Form 10-K filing (dated December 5, 2006) could affect the Company's actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, the Company.
Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit www.johnsoncontrols.com .
Originaltext: Johnson Controls GmbH digital press kits: http://www.presseportal.de/pm/19526 press kits via RSS: http://www.presseportal.de/rss/pm_19526.rss2
Further information is available from: Johnson Controls Gmbh Automotive Experience Industriestraße 20-30 51399 Burscheid Germany
Astrid Schafmeister Tel.: +49 2174 65-3189 Fax: +49 2174 65-3219 E-mail: astrid.schafmeister@jci.com
Ina Longwitz Tel.: +49 2174 65-4343 E-mail: ina.longwitz@jci.com
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