10-QPeriod: Q3 FY2011

Johnson Controls International plc Quarterly Report for Q3 Ended Jun 24, 2011

Filed July 28, 2011For Securities:JCI

Summary

Johnson Controls International plc (JCI), during its fiscal third quarter ending June 24, 2011, demonstrated resilience and strategic execution amidst ongoing global economic conditions. The company reported a modest increase in net revenue to $4.3 billion, up 0.4% year-over-year, driven by solid performance in its Tyco Security Solutions and Tyco Fire Protection segments, with favorable foreign currency exchange rates contributing positively. Operating income saw a significant increase of 26.7% to $475 million, reflecting improved operational efficiencies and cost containment measures. The company's strategic focus on its core businesses—Tyco Security Solutions, Tyco Fire Protection, and Tyco Flow Control—is evident through ongoing segment realignments and targeted acquisitions, such as the recent acquisition of Signature Security Group. Furthermore, JCI continued its commitment to returning capital to shareholders, evidenced by its ongoing share repurchase program and dividend payments. The company's strong cash generation and solid balance sheet provide a stable foundation for future growth and shareholder returns.

Financial Highlights

52 data points
Beta

Revenue

$4.29B

38.5% Gross Margin

Net Income

$359.00M

8.4% Net Margin

EPS (Diluted)

$0.76

Total Assets

$26.98B

Cash & Equivalents

$1.63B

Free Cash Flow

$708.00M

Financial Statements
Beta
Revenue$4.29B
Cost of Revenue$2.64B
Gross Profit$1.65B
SG&A Expenses$1.14B
Operating Income$475.00M
Interest Expense$59.00M
Net Income$359.00M
EPS (Basic)$0.77
EPS (Diluted)$0.76
Shares Outstanding (Basic)468.00M
Shares Outstanding (Diluted)475.00M

Key Highlights

  • 1Net revenue increased slightly by 0.4% to $4.3 billion for the quarter ended June 24, 2011, compared to the prior year period.
  • 2Operating income saw a substantial increase of 26.7% to $475 million, indicating improved profitability and operational efficiency.
  • 3Tyco Security Solutions demonstrated strong growth, with net revenue up 12.7% to $2.17 billion and operating income up 41.6% to $327 million.
  • 4The company completed a majority sale of its Electrical and Metal Products business, resulting in a significant gain of $259 million recognized in the quarter.
  • 5Tyco continued to actively manage its capital structure, repurchasing approximately $1.3 billion of its common shares during the nine months ended June 24, 2011.
  • 6The company reported a healthy cash position of $1.6 billion as of June 24, 2011, supported by strong operating cash flows.
  • 7Strategic acquisitions, including Signature Security Group, were completed to bolster the Tyco Security Solutions segment.

Frequently Asked Questions

Johnson Controls reported a net revenue of $4.3 billion for the quarter ended June 24, 2011, a slight increase of 0.4% compared to the same period last year. Operating income showed a significant improvement, rising by 26.7% to $475 million, driven by strong performance in key segments and effective cost management.

The Tyco Security Solutions segment was a standout performer, with net revenue growing by 12.7% to $2.17 billion and operating income increasing by 41.6% to $327 million. The Tyco Fire Protection segment also saw growth, with net revenue up 7.7% to $1.2 billion. The Tyco Flow Control segment experienced a 9.3% increase in net revenue to $928 million, though operating income saw a slight decrease.

Johnson Controls reported the completion of the sale of a majority interest in its Electrical and Metal Products business, resulting in a significant gain of $259 million. This strategic divestiture aligns with the company's focus on its three core businesses: Tyco Security Solutions, Tyco Fire Protection, and Tyco Flow Control.

The company maintained a strong liquidity position with $1.6 billion in cash and cash equivalents as of June 24, 2011. Johnson Controls actively repurchased approximately $1.3 billion of its common shares during the nine months ended June 24, 2011, demonstrating a commitment to returning capital to shareholders. Dividend payments were also maintained.