Summary
Johnson Controls International plc (JCI), filing as Tyco International Ltd. for the fiscal year ended September 25, 2009, reported a net loss of $1.8 billion on revenues of $17.2 billion. This performance was significantly impacted by a substantial goodwill and intangible asset impairment charge of $2.7 billion, primarily driven by the challenging economic environment and weakness in key end markets, particularly in the Electrical and Metal Products segment. Despite revenue decline, the company noted a continued growth in service revenue as a percentage of total revenue, signaling a shift towards more recurring and stable income streams across its ADT Worldwide and Fire Protection Services segments. Looking ahead, Tyco's management highlighted plans to continue portfolio refinement by divesting underperforming businesses and focusing on cost containment and restructuring actions expected to yield significant future savings. The company also reported a strong cash position and available credit facilities, indicating sufficient liquidity to manage operations and pursue strategic opportunities, including potential acquisitions in its core segments. Investors should note the company's significant international presence and the associated foreign currency exchange rate risks, as well as ongoing legal matters, particularly those related to legacy securities litigation.
Financial Highlights
54 data points| Revenue | $16.88B |
| Cost of Revenue | $10.87B |
| Gross Profit | $6.01B |
| R&D Expenses | $116.00M |
| SG&A Expenses | $4.60B |
| Operating Income | -$1.51B |
| Interest Expense | $301.00M |
| Net Income | -$1.80B |
| EPS (Basic) | $-3.80 |
| EPS (Diluted) | $-3.80 |
| Shares Outstanding (Basic) | 473.00M |
| Shares Outstanding (Diluted) | 473.00M |
Key Highlights
- 1Reported a net loss of $1.8 billion for the fiscal year ended September 25, 2009, significantly impacted by $2.7 billion in goodwill and intangible asset impairment charges.
- 2Total revenues for the fiscal year were $17.2 billion, a decrease from $20.2 billion in the prior year, reflecting adverse economic conditions and a 14.7% revenue decline.
- 3Service revenue continued to grow as a percentage of total revenue, reaching 39% (from 35% in FY2008), indicating a strategic shift towards more stable recurring revenue streams.
- 4The ADT Worldwide segment, comprising 41% of revenue, saw service revenue decline 5.4% and product revenue fall 16.6% year-over-year.
- 5The Electrical and Metal Products segment experienced a significant revenue decrease of 38.7%, driven by lower volumes and selling prices for steel products amidst a declining commercial market.
- 6The company ended the fiscal year with a strong cash balance of $2.4 billion and maintained $1.69 billion in available credit facilities, ensuring sufficient liquidity.
- 7Tyco is undertaking restructuring and portfolio refinement efforts, including plans to sell a business within the ADT Worldwide segment, to improve future profitability and strategic alignment.