01—Abstract
Summary
Summary of the 10-K filed November 15, 2021. Cited figures are marked; the original filing is the authoritative source.
Johnson Controls International plc (JCI) reported for the fiscal year ended September 29, 2021, a net sales increase of 6% to $23.7 billiona, driven by organic growth and favorable foreign currency translation.
Net income attributable to Johnson Controls significantly increased to $1.64 billionb from $631 million in the prior year, reflecting improved gross profit, lower SG&A expenses, and reduced restructuring costs, partially offset by a higher income tax provision. The company continues its strategic focus on smart, healthy, and sustainable buildings, leveraging its OpenBlue software platform.
Significant headwinds were noted from supply chain disruptions and increased input material costs, which the company actively mitigated through various measures. The company also highlighted its ongoing commitment to shareholder returns through a substantial share repurchase program and dividend payments.
02—Key points
Key Highlights
- Net sales increased by 6% to $23.7 billion in fiscal year 2021, driven by organic growth, favorable foreign currency translation, and acquisitions.
- Net income attributable to Johnson Controls surged to $1.64 billion, a significant improvement from $631 million in fiscal year 2020.
- Segment EBITA increased by 15% to $3.4 billion, with strong performance in the Global Products and Building Solutions EMEA/LA segments.
- The company repurchased approximately $1.3 billion of its ordinary shares in fiscal year 2021 under its share repurchase program.
- Johnson Controls announced plans to optimize its cost structure, aiming for annualized savings of $300 million in SG&A and $250 million in cost of sales by fiscal year 2023.
- The company is investing 75% of its new product R&D in climate-related innovation to develop sustainable products and services.
- Despite experiencing supply chain disruptions and increased commodity costs, the company demonstrated effective mitigation strategies, though these trends are expected to continue into fiscal year 2022.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Johnson Controls International plc kept $0.07.
- Revenue$23.67B100.0%
- Cost of revenue−$15.61B65.9%
- Gross profit$8.06B34.1%
- Operating costs−$6.55B27.7%
- Operating income$1.51B6.4%
- Interest, other & tax$124.0M0.5%
- Net income$1.64B6.9%
Where FY2021 revenue went
$23.67B- Cost of revenue: $15.61B, 66% of revenue
- SG&A: $5.26B, 22% of revenue
- Operating income: $1.51B, 6.4% of revenue
- R&D: $275.0M, 1.2% of revenue
- Other operating costs: $1.01B, 4.3% of revenue
Kept 6.4% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed November 15, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $23.67B$22.32B | +6.1% |
| Cost of Revenue | $15.61B$14.91B | +4.7% |
| Gross Profit | $8.06B$7.41B | +8.7% |
| R&D Expenses | $275.00M$274.00M | +0.4% |
| SG&A Expenses | $5.26B$5.67B | −7.2% |
| Operating Income | $1.51B$631.00M | +139.8% |
| Interest Expense | $219.00M$240.00M | −8.7% |
| Net Income | $1.64B$631.00M | +159.4% |
| EPS (Basic) | $2.28$0.84 | +171.4% |
| EPS (Diluted) | $2.27$0.84 | +170.2% |
| Shares Outstanding (Basic) | 716.60M751.00M | −4.6% |
| Shares Outstanding (Diluted) | 721.10M753.60M | −4.3% |
05—Questions
Frequently Asked Questions
What was Johnson Controls' financial performance in fiscal year 2021?
In fiscal year 2021, Johnson Controls reported a 6% increase in net sales to $23.7 billion and a significant rise in net income attributable to Johnson Controls to $1.64 billion, up from $631 million in fiscal year 2020. This performance was driven by organic growth, favorable foreign currency, acquisitions, and successful cost management initiatives.
What are Johnson Controls' key strategic priorities?
Johnson Controls' strategic priorities include capitalizing on key growth vectors like decarbonization, healthy buildings, and smart buildings; accelerating growth in high-growth digital services, regions, and verticals; and sustaining a high-performance, customer-centric culture. The company is particularly focused on leveraging its OpenBlue software platform to deliver outcome-based solutions.
What challenges did Johnson Controls face in fiscal year 2021, and how did they address them?
The company faced challenges from supply chain disruptions, increased commodity costs, and labor shortages, largely due to global macroeconomic trends and the ongoing impact of the COVID-19 pandemic. Johnson Controls mitigated these issues through proactive measures such as adjusting purchasing strategies, expanding its supplier network, implementing price increases, and driving productivity improvements. However, the company anticipates these trends will continue into fiscal year 2022.
06—Continue