Summary
Johnson Controls International plc (JCI) reported its financial results for the quarter ending December 25, 2009. The company saw a slight decrease in net revenue, down 4.1% year-over-year to $4.25 billion. This was primarily attributed to lower product sales, impacted by declining steel prices and weaker commercial market conditions, partially offset by favorable foreign currency movements. Operating income remained stable at $414 million, benefiting from cost containment measures and previous restructuring efforts, despite lower volumes in several segments. Key strategic developments include the agreement to acquire Brink's Home Security Holdings, Inc. for approximately $2.0 billion, which is expected to significantly bolster the ADT Worldwide segment. The company also continues to refine its portfolio by exiting non-core businesses and pursuing restructuring opportunities to drive future cost savings. While facing ongoing litigation and investigations, JCI's liquidity remains strong with a cash balance of $2.5 billion and available credit facilities, positioning it to fund growth initiatives and return capital to shareholders.
Financial Highlights
51 data points| Revenue | $4.16B |
| Cost of Revenue | $2.62B |
| Gross Profit | $1.54B |
| SG&A Expenses | $1.12B |
| Operating Income | $405.00M |
| Interest Expense | $75.00M |
| Net Income | $302.00M |
| EPS (Basic) | $0.64 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 476.00M |
| Shares Outstanding (Diluted) | 479.00M |
Key Highlights
- 1Net revenue for the quarter decreased by 4.1% to $4.25 billion, influenced by reduced product sales and market weakness, although offset by favorable foreign currency exchange rates.
- 2Operating income remained stable at $414 million, demonstrating resilience through cost management and restructuring efforts despite revenue pressures.
- 3The company announced a significant agreement to acquire Brink's Home Security Holdings, Inc. for approximately $2.0 billion, a strategic move to strengthen its ADT Worldwide segment.
- 4ADT Worldwide saw a 1.3% increase in net revenue, driven by a 9.4% rise in recurring service revenue and growth in customer accounts.
- 5Flow Control and Safety Products segments experienced revenue declines due to reduced volumes and market conditions.
- 6Electrical and Metal Products faced a significant revenue drop of 28.6% due to lower steel prices and reduced volumes.
- 7The company ended the quarter with a strong cash position of $2.5 billion and substantial available credit facilities, supporting operational needs and strategic investments.