Summary
Johnson Controls International plc (JCI) reported a net loss of $182 million for the three months ended June 30, 2020, a significant shift from the net income of $4.19 billion in the prior year period. This was primarily driven by the absence of a large gain from discontinued operations that was recognized in the prior year, coupled with increased restructuring and impairment costs and the ongoing impact of the COVID-19 pandemic. Net sales for the quarter decreased by 17% to $5.34 billion, largely due to lower organic sales impacted by the pandemic. While gross profit as a percentage of sales improved slightly to 34.3%, substantial restructuring and impairment charges of $610 million negatively impacted profitability. The company maintained a strong liquidity position, ending the quarter with $2.34 billion in cash and cash equivalents. Despite the near-term challenges, JCI highlighted its focus on employee safety, operational continuity, and strategic initiatives like cost mitigation and resuming its share repurchase program. For the nine-month period ended June 30, 2020, net income attributable to Johnson Controls was $190 million, down from $5.06 billion in the prior year, reflecting similar factors including the absence of prior year discontinued operations gains and increased restructuring costs. The company continues to navigate the uncertain economic environment driven by the COVID-19 pandemic while focusing on its strategic priorities.
Financial Highlights
51 data points| Revenue | $5.34B |
| Cost of Revenue | $3.51B |
| Gross Profit | $1.83B |
| SG&A Expenses | $1.33B |
| Operating Income | $190.00M |
| Interest Expense | $58.00M |
| Net Income | -$182.00M |
| EPS (Basic) | $-0.24 |
| EPS (Diluted) | $-0.24 |
| Shares Outstanding (Basic) | 744.00M |
| Shares Outstanding (Diluted) | 744.00M |
Key Highlights
- 1Net loss of $182 million for the three months ended June 30, 2020, compared to a net income of $4.19 billion in the prior year, primarily due to the absence of discontinued operations gains.
- 2Net sales declined 17% to $5.34 billion for the quarter, impacted by COVID-19 related demand reduction across all segments.
- 3Significant increase in restructuring and impairment costs to $610 million for the quarter, compared to $235 million in the prior year, reflecting ongoing restructuring plans and asset impairments.
- 4Despite the net loss, the company ended the quarter with $2.34 billion in cash and cash equivalents, demonstrating a solid liquidity position.
- 5Company resumed its share repurchase program in the fourth quarter of fiscal 2020 after a temporary suspension due to COVID-19 uncertainty.
- 6Positive trends in gross profit margin, which increased to 34.3% for the quarter, indicating some operational efficiencies.
- 7The company recorded a goodwill impairment charge of $424 million related to its North America Retail reporting unit due to COVID-19 impacts.