Summary
Johnson Controls International plc (JCI) reported its financial results for the quarter and six months ended March 26, 2010. For the quarter, the company saw a slight increase in net revenue of 0.5% to $4.17 billion, driven by favorable foreign currency fluctuations partially offset by volume declines and weakness in commercial markets. Operating income significantly improved to $427 million, a substantial rebound from the $2.55 billion operating loss in the prior year quarter, largely due to the absence of substantial goodwill and intangible asset impairment charges recorded in fiscal 2009. The company also announced its agreement to acquire Brink's Home Security Holdings, Inc. for approximately $2.0 billion, which is expected to be financed through a mix of cash and Tyco common shares and will be integrated into the ADT Worldwide segment. For the six-month period, net revenue slightly decreased by 1.9% to $8.42 billion, also impacted by unfavorable selling prices and market weakness, but cushioned by favorable currency movements. Operating income for the six months improved significantly to $841 million, compared to an operating loss of $2.14 billion in the prior year period, again benefiting from the lack of significant impairment charges and cost containment measures. The company maintained a strong cash position of $2.7 billion and focused on funding internal growth, strategic acquisitions like BHS, and returning capital to shareholders.
Financial Highlights
51 data points| Revenue | $4.09B |
| Cost of Revenue | $2.60B |
| Gross Profit | $1.49B |
| SG&A Expenses | $1.09B |
| Operating Income | $425.00M |
| Interest Expense | $75.00M |
| Net Income | $310.00M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 476.00M |
| Shares Outstanding (Diluted) | 478.00M |
Key Highlights
- 1Net revenue for the quarter ended March 26, 2010, was $4.17 billion, a 0.5% increase year-over-year, primarily driven by favorable foreign currency exchange rates.
- 2Operating income for the quarter was $427 million, a significant improvement from the operating loss of $2.55 billion in the prior year quarter, due to the absence of large impairment charges.
- 3The company announced an agreement to acquire Brink's Home Security Holdings, Inc. (BHS) for approximately $2.0 billion, to be financed with cash and Tyco common shares.
- 4For the six months ended March 26, 2010, net revenue was $8.42 billion, a 1.9% decrease year-over-year, impacted by lower selling prices and market weakness, partially offset by currency benefits.
- 5Operating income for the six months improved to $841 million, from an operating loss of $2.14 billion in the prior year period.
- 6The company's cash and cash equivalents increased to $2.73 billion as of March 26, 2010, from $2.35 billion at September 25, 2009.
- 7Standard & Poor's Rating Services raised the company's long-term debt rating to A- from BBB+ on April 12, 2010.