Summary
Johnson Controls International plc (JCI) reported its fiscal second-quarter and year-to-date results for the period ending March 25, 2011. The company experienced a slight decline in net revenue for the quarter, primarily due to the divestiture of its Electrical and Metal Products business. However, revenue saw an increase on a six-month basis, driven by growth in the Tyco Security Solutions and Tyco Fire Protection segments. Operating income showed improvement, particularly for the six-month period, benefiting from a significant gain on the divestiture of the Electrical and Metal Products business. The company continues to focus on operational efficiency, cost savings through restructuring initiatives, and returning capital to shareholders via share repurchases and dividends. The balance sheet remains solid, with a strong cash position and manageable debt levels.
Financial Highlights
52 data points| Revenue | $3.99B |
| Cost of Revenue | $2.44B |
| Gross Profit | $1.55B |
| SG&A Expenses | $1.08B |
| Operating Income | $437.00M |
| Interest Expense | $63.00M |
| Net Income | $315.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 472.00M |
| Shares Outstanding (Diluted) | 477.00M |
Key Highlights
- 1Net revenue for the quarter decreased by 2.5% year-over-year to $3.99 billion, impacted by divestitures, but increased 1.5% year-over-year to $8.37 billion for the six-month period.
- 2Operating income increased by 2.8% to $437 million for the quarter and significantly by 37.7% to $1.14 billion for the six-month period, the latter boosted by a $250 million gain from the sale of the Electrical and Metal Products business.
- 3Tyco Security Solutions demonstrated robust growth, with net revenue increasing by 12.3% for the quarter and 11.2% for the six-month period, largely driven by the acquisition of Broadview Security and organic growth in recurring revenue.
- 4Tyco Fire Protection reported modest net revenue growth of 2.5% for the quarter and 0.6% for the six-month period, with product sales and service revenue showing positive trends.
- 5Tyco Flow Control experienced a slight decrease in net revenue of 2.4% for the quarter and 1.6% for the six-month period, mainly due to a decline in the Water & Environmental Systems business.
- 6The company generated strong operating cash flow of $913 million for the six months ended March 25, 2011.
- 7Significant capital allocation activities included $1 billion in share repurchases and $224 million in dividend payments during the six months ended March 25, 2011.