Summary
Johnson Controls International plc reported its financial results for the first quarter of fiscal year 2022, ending December 31, 2021. Net sales increased by 10% year-over-year to $5.9 billion, driven by higher organic sales and acquisitions. Despite a revenue increase, net income attributable to Johnson Controls decreased by 16% to $381 million compared to the prior year quarter, largely due to the absence of a significant one-time gain from discontinued operations in the prior year and increased restructuring costs. Diluted earnings per share also declined to $0.54 from $0.62. The company highlighted strong performance in its Global Products segment, which saw an 18% increase in net sales, and continued growth in Building Solutions Asia Pacific and North America. However, the company is experiencing ongoing headwinds from supply chain disruptions and material cost inflation, which impacted gross profit margins. Management is implementing strategies to mitigate these challenges and remains focused on its strategic priorities, including digital transformation with its OpenBlue platform and driving growth in services and recurring revenue.
Financial Highlights
50 data points| Revenue | $5.86B |
| Cost of Revenue | $3.97B |
| Gross Profit | $1.89B |
| SG&A Expenses | $1.37B |
| Operating Income | $381.00M |
| Interest Expense | $55.00M |
| Net Income | $381.00M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 704.30M |
| Shares Outstanding (Diluted) | 709.50M |
Key Highlights
- 1Net sales increased 10% to $5.9 billion, driven by organic growth and acquisitions, signaling continued top-line momentum.
- 2Net income attributable to Johnson Controls decreased 16% to $381 million, primarily due to the absence of a significant gain from discontinued operations in the prior year and increased restructuring costs.
- 3Diluted EPS decreased to $0.54 from $0.62 year-over-year, reflecting the lower net income.
- 4The Global Products segment showed robust growth with an 18% increase in net sales, indicating strong demand for its diverse product offerings.
- 5Gross profit margin slightly decreased by 10 basis points to 32.3% due to supply chain inefficiencies and price/cost pressures, despite higher sales volumes.
- 6The company continues to experience supply chain disruptions and input cost inflation, which management is actively working to mitigate.
- 7Johnson Controls announced a $4 billion increase to its share repurchase authorization, underscoring its commitment to returning capital to shareholders, with approximately $4.5 billion remaining as of December 31, 2021.