Summary
Johnson Controls International plc (JCI), operating as Tyco International plc in this filing, reported a 6.4% decrease in net revenue for the third quarter of fiscal year 2015, reaching $2.5 billion compared to $2.7 billion in the prior year period. This decline was primarily driven by unfavorable foreign currency exchange rates, which had a 6.9% negative impact, and a 1.1% organic revenue decrease, primarily in the Global Products and ROW Installation & Services segments. Operating income also saw a significant decrease of 14.8% to $253 million, largely due to a $35 million increase in restructuring and repositioning charges. Despite revenue headwinds, the company continued strategic initiatives, including acquisitions that contributed positively to revenue and ongoing efforts in cost savings and productivity improvements. Investors should note the ongoing restructuring efforts and the impact of currency fluctuations as key factors influencing recent performance.
Financial Highlights
52 data points| Revenue | $2.49B |
| Cost of Revenue | $1.02B |
| Gross Profit | $1.46B |
| SG&A Expenses | $625.00M |
| Operating Income | $253.00M |
| Interest Expense | $26.00M |
| Net Income | $156.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 421.00M |
| Shares Outstanding (Diluted) | 427.00M |
Key Highlights
- 1Net revenue for the quarter decreased by 6.4% to $2.5 billion, impacted by a 6.9% unfavorable foreign currency exchange rate effect.
- 2Organic revenue declined by 1.1%, primarily in the Global Products and ROW Installation & Services segments.
- 3Operating income decreased by 14.8% to $253 million, largely due to a $35 million increase in restructuring and repositioning charges.
- 4NA Installation & Services segment showed modest net revenue growth of 0.4%, with operating income increasing by 36.8%.
- 5ROW Installation & Services segment experienced a significant revenue decline of 15.7%, with operating income down 44.1%, impacted by currency and industry pressures.
- 6Global Products segment saw a 2.6% revenue decrease, though organic revenue for the nine-month period grew by 4.3%, supported by acquisitions.
- 7The company repurchased approximately 10 million shares for $417 million in the nine months ended June 26, 2015, as part of its share repurchase program.