Summary
Johnson Controls International plc (JCI), reporting as Tyco International Ltd. for the fiscal year ending September 27, 2007, has undergone a significant strategic transformation with the spin-off of its Healthcare and Electronics businesses (Covidien and Tyco Electronics) into separate publicly traded companies. This strategic move has reshaped the company's operational focus, now centered on five core segments: ADT Worldwide, Fire Protection Services, Flow Control, Safety Products, and Electrical and Metal Products. The company emphasizes its leading market positions, global reach, diverse product portfolio, and a stable, recurring revenue base as key competitive strengths. Management is focused on expanding its customer base, generating new business from existing customers, improving productivity and efficiency, and pursuing disciplined acquisitions to drive growth and enhance profitability. Despite significant restructuring costs and the material weakness identified in internal controls over financial reporting related to income taxes, the company highlights its strong cash flow generation and experienced management team, led by CEO Ed Breen, who have navigated significant operational changes and corporate governance improvements.
Financial Highlights
29 data points| Revenue | $11.82B |
| Cost of Revenue | $8.49B |
| Gross Profit | $3.32B |
| SG&A Expenses | $4.78B |
| Operating Income | -$1.73B |
| Interest Expense | $313.00M |
| Net Income | -$1.74B |
| EPS (Basic) | $-3.52 |
| EPS (Diluted) | $-3.52 |
| Shares Outstanding (Basic) | 495.00M |
| Shares Outstanding (Diluted) | 495.00M |
Key Highlights
- 1Completion of the spin-off of Covidien and Tyco Electronics, creating three independent, publicly traded companies, with Tyco now focused on security, fire, flow control, and industrial products.
- 2Restructuring of the business into five core segments: ADT Worldwide, Fire Protection Services, Flow Control, Safety Products, and Electrical and Metal Products.
- 3Significant net revenue growth of 8.3% to $18.8 billion, driven by strong performance across all segments, particularly Flow Control and ADT Worldwide.
- 4A substantial charge of $2.862 billion related to a class action settlement was a major factor impacting reported net income for the year.
- 5Identified a material weakness in internal control over financial reporting related to accounting for income taxes, with ongoing remediation efforts.
- 6Strong cash flow generation noted, providing financial flexibility for investments and acquisitions.
- 7Exploration of divestitures for under-performing or non-strategic businesses, including the approved divestiture of Infrastructure Services.