Summary
Johnson Controls International plc reported a strong third quarter for fiscal year 2021, with net sales increasing by 19% to $6.3 billion compared to the prior year. This growth was driven by higher organic sales across all segments, particularly in Global Products and Building Solutions EMEA/LA, reflecting a recovery in demand post-COVID-19. Net income attributable to Johnson Controls significantly improved, reaching $574 million, a substantial turnaround from a net loss of $182 million in the same period last year. This improvement was largely due to lower restructuring and impairment costs, coupled with robust gross profit growth. Operationally, the company demonstrated solid execution, with segment EBITA increasing by 22% year-over-year. Cash flow from operating activities of continuing operations for the nine-month period saw a healthy increase, reflecting effective working capital management. The company also continued its strategic capital allocation by repurchasing shares, demonstrating confidence in its financial position and future prospects. However, investors should note the ongoing risks related to supply chain disruptions, input cost inflation, and potential environmental liabilities, particularly concerning PFAS, which require ongoing monitoring.
Financial Highlights
51 data points| Revenue | $6.34B |
| Cost of Revenue | $4.14B |
| Gross Profit | $2.20B |
| SG&A Expenses | $1.37B |
| Operating Income | $1.24B |
| Interest Expense | $55.00M |
| Net Income | $574.00M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 714.50M |
| Shares Outstanding (Diluted) | 719.70M |
Key Highlights
- 1Net sales increased 19% to $6.3 billion in Q3 FY2021 compared to Q3 FY2020, driven by strong organic sales growth and recovery post-COVID-19.
- 2Net income attributable to Johnson Controls swung to a profit of $574 million from a loss of $182 million in the prior year's quarter.
- 3Segment EBITA increased by 22% to $1.02 billion, showcasing improved profitability across all business segments.
- 4Cash provided by operating activities from continuing operations for the nine months ended June 30, 2021, was $2.02 billion, up from $1.50 billion in the prior year.
- 5The company acquired Silent-Aire for approximately $751 million in May 2021, adding goodwill of $235 million to the Global Products segment.
- 6Effective tax rate for continuing operations for the nine months ended June 30, 2021, was 21%, impacted by valuation allowance adjustments and mark-to-market effects.
- 7The company maintained a strong liquidity position with $1.5 billion in cash and cash equivalents as of June 30, 2021.