Summary
Johnson Controls International plc (JCI) reported its third quarter 2016 results, reflecting a period marked by significant strategic developments and ongoing operational performance. Net revenue for the quarter decreased by 4.1% year-over-year to $2.33 billion, influenced by unfavorable foreign currency impacts and divestitures, although acquisitions provided a partial offset. On an organic basis, net revenue saw a slight decline of 1.0%. The most prominent event during this period was the announcement and progression of the merger with Johnson Controls, Inc. This significant transaction is expected to create a larger, more diversified entity. While the merger introduces associated costs and integration challenges, it also presents opportunities for synergies and expanded market reach. The company is actively managing its operations amidst this transformative period, focusing on efficiency and strategic alignment.
Financial Highlights
54 data points| Revenue | $4.73B |
| Cost of Revenue | $3.45B |
| Gross Profit | $1.29B |
| SG&A Expenses | $899.00M |
| Operating Income | $225.00M |
| Interest Expense | $65.00M |
| Net Income | -$530.00M |
| EPS (Basic) | $-0.82 |
| EPS (Diluted) | $-0.81 |
| Shares Outstanding (Basic) | 648.20M |
| Shares Outstanding (Diluted) | 652.10M |
Key Highlights
- 1Net revenue for the quarter decreased by 4.1% to $2.33 billion compared to the prior year, with organic revenue declining by 1.0%.
- 2The company incurred $26 million in merger costs related to the proposed combination with Johnson Controls.
- 3Operating income saw a slight increase of 1.8% to $225 million, driven by reduced restructuring charges and legacy legal gains, partially offset by merger costs.
- 4The ROW Integrated Solutions & Services segment experienced a significant revenue decline of 9.3%, largely due to foreign currency impacts, divestitures, and challenges in the high-hazard industrial sector.
- 5The NA Integrated Solutions & Services segment showed modest growth with a net revenue increase of 0.3%, driven by integrated solutions revenue.
- 6The company entered into a $4 billion term loan facility and a $1 billion revolving credit agreement to finance the pending merger with Johnson Controls.
- 7A tentative settlement with the IRS regarding intercompany debt issues was reached, potentially resulting in a cash payment between $475 million and $525 million, shared among Tyco, Covidien, and TE Connectivity.