Summary
Johnson Controls International plc reported solid financial performance for the quarter ending March 31, 2021, with a notable increase in net income attributable to shareholders and diluted earnings per share compared to the prior year. Net sales saw a modest increase of 3% for the quarter, driven by favorable foreign currency translation and organic growth, although the six-month period showed a slight decrease primarily due to COVID-19 impacts. The company demonstrated improved profitability, with gross profit increasing 8% for the quarter and 2% year-to-date, leading to an expansion in gross profit margin. Selling, general, and administrative (SG&A) expenses were significantly reduced, both in absolute terms and as a percentage of sales, primarily due to favorable pension mark-to-market adjustments and ongoing cost mitigation efforts. The company also saw a substantial increase in income from discontinued operations, positively impacting the overall financial results for the six-month period. Johnson Controls continues to focus on its strategic direction, emphasizing smart, energy-efficient, and sustainable buildings. The company is also actively managing its capital structure, with a strong liquidity position and significant capacity for share repurchases. However, investors should remain aware of ongoing legal proceedings and environmental matters, particularly those related to PFAS, which could present future financial risks.
Financial Highlights
51 data points| Revenue | $5.59B |
| Cost of Revenue | $3.65B |
| Gross Profit | $1.94B |
| SG&A Expenses | $1.25B |
| Operating Income | $670.00M |
| Interest Expense | $53.00M |
| Net Income | $343.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 717.10M |
| Shares Outstanding (Diluted) | 721.30M |
Key Highlights
- 1Net income attributable to Johnson Controls increased by 61% to $343 million for the three months ended March 31, 2021, compared to $213 million in the prior year.
- 2Diluted earnings per share (EPS) rose to $0.48 for the three months ended March 31, 2021, from $0.28 in the same period last year.
- 3Consolidated net sales for the three months ended March 31, 2021, increased by 3% to $5.59 billion, driven by favorable foreign currency translation and organic sales growth.
- 4Gross profit increased by 8% to $1.94 billion for the three months ended March 31, 2021, with gross profit margin improving to 34.7% from 33.1% in the prior year.
- 5Selling, general, and administrative (SG&A) expenses decreased by 14% to $1.25 billion for the three months ended March 31, 2021, reflecting cost mitigation actions and favorable pension mark-to-market adjustments.
- 6The company generated $1.16 billion in cash from operating activities for the six months ended March 31, 2021, a significant increase from $666 million in the prior year.
- 7Johnson Controls announced a definitive agreement to acquire Silent-Aire for up to $870 million, expected to close in Q3 fiscal 2021, which will be reported within the Global Products segment.