Summary
Johnson Controls International plc (JCI) reported its financial results for the quarter ended March 31, 2020. The company experienced a notable decrease in net sales, down 6% for the quarter and 2% year-to-date, largely attributed to the impact of the COVID-19 pandemic and unfavorable foreign currency translation. Net income attributable to Johnson Controls declined significantly, reflecting the impact of lower sales, increased restructuring and impairment charges, and the absence of income from discontinued operations compared to the prior year. Despite the headwinds, the company maintained a strong liquidity position with $1.0 billion in cash and $3.0 billion in revolving credit facilities, and took proactive steps to bolster financial flexibility by raising additional debt and suspending its share repurchase program. Management is focusing on cost mitigation actions and believes its capital resources are adequate to meet projected needs.
Financial Highlights
51 data points| Revenue | $5.44B |
| Cost of Revenue | $3.64B |
| Gross Profit | $1.80B |
| SG&A Expenses | $1.45B |
| Operating Income | $372.00M |
| Interest Expense | $62.00M |
| Net Income | $213.00M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 754.80M |
| Shares Outstanding (Diluted) | 757.10M |
Key Highlights
- 1Consolidated net sales decreased by 6% to $5.44 billion for the three months ended March 31, 2020, compared to $5.78 billion in the prior year, primarily due to lower organic sales (down 5% excluding currency and divestitures) impacted by COVID-19.
- 2Net income attributable to Johnson Controls decreased by 59% to $213 million for the three months ended March 31, 2020, down from $515 million in the prior year, impacted by lower sales and increased charges.
- 3Diluted earnings per share (EPS) decreased to $0.28 for the quarter, compared to $0.57 in the same period last year.
- 4The company reported restructuring and impairment costs of $62 million for the quarter, compared to none in the prior year's quarter, reflecting ongoing strategic initiatives and asset impairments.
- 5Cash provided by operating activities from continuing operations was $666 million for the six months ended March 31, 2020, an increase from $103 million in the prior year, driven by timing of tax payments and favorable changes in accounts receivable.
- 6Total debt remained relatively stable at $7.07 billion, but net debt increased by 37% to $6.06 billion due to a decrease in cash and cash equivalents.
- 7The company maintained a strong liquidity position, ending the quarter with $1.0 billion in cash and cash equivalents and $3.0 billion in available revolving credit facilities. Proactive measures to enhance liquidity were taken in April 2020, including raising additional debt and suspending share repurchases.