Summary
Johnson Controls International plc (JCI) reported its first quarter results for fiscal year 2009, ending December 26, 2008. Net revenue for the quarter was $4.43 billion, a decrease of 8.5% compared to the prior year's $4.84 billion. This decline was primarily attributed to the unfavorable impact of foreign currency exchange rates, which reduced revenue by $424 million. Operating income also saw a decrease, falling to $413 million from $493 million in the prior year's quarter, with foreign currency headwinds contributing $48 million to this decline. The company is navigating a challenging economic environment, with slowing commercial markets impacting various segments. Despite these headwinds, JCI is actively pursuing cost-saving initiatives, including restructuring programs, and prudently managing its capital. The company also announced its intention to move its jurisdiction of incorporation from Bermuda to Switzerland, a move expected to provide economic and operational benefits. While the company faces ongoing legal proceedings and investigations, it believes these will not have a material adverse effect on its financial position.
Financial Highlights
29 data points| Revenue | $4.34B |
| Cost of Revenue | $1.98B |
| Gross Profit | $1.54B |
| SG&A Expenses | $1.14B |
| Operating Income | $413.00M |
| Interest Expense | $73.00M |
| Net Income | $277.00M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 473.00M |
| Shares Outstanding (Diluted) | 475.00M |
Key Highlights
- 1Net revenue decreased by 8.5% to $4.43 billion, largely due to a significant negative impact from foreign currency fluctuations ($424 million).
- 2Operating income declined by 16.2% to $413 million, also affected by currency headwinds ($48 million) and lower volumes in key segments.
- 3The company is actively managing costs through ongoing restructuring programs, expecting to incur $100-$150 million in charges in fiscal year 2009.
- 4A plan to change the company's jurisdiction of incorporation from Bermuda to Switzerland was announced, anticipating economic and operational benefits.
- 5Safety Products segment acquired Vue Technology, Inc. for $43 million to enhance its RFID capabilities.
- 6Cash and cash equivalents decreased to $1.19 billion from $1.52 billion in the prior quarter.
- 7Attrition rates in ADT Worldwide business increased to 13.2% on a trailing 12-month basis, attributed to adverse macroeconomic factors.