{"id":424414,"date":"2021-01-29T06:03:27","date_gmt":"2021-01-29T11:03:27","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=424414"},"modified":"2021-01-29T06:03:27","modified_gmt":"2021-01-29T11:03:27","slug":"johnson-controls-reports-strong-start-to-fiscal-year-provides-fiscal-2021-full-year-and-q2-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/johnson-controls-reports-strong-start-to-fiscal-year-provides-fiscal-2021-full-year-and-q2-guidance\/","title":{"rendered":"Johnson Controls Reports Strong Start to Fiscal Year; Provides Fiscal 2021 Full Year and Q2 Guidance"},"content":{"rendered":"
\n

– GAAP EPS of $0.45; Adjusted EPS of $0.43, up 8% versus prior year<\/h2>\n

– Continued sequential quarterly improvement in sales, orders and profitability<\/h2>\n

– Backlog of $9.5B increases 3% organically year-over-year<\/h2>\n

– Cash provided by operating activities was $0.5 billion; Free cash flow of $0.4 billion<\/h2>\n

– Executed $346 million of planned share repurchases in Q1<\/h2>\n

– Announced ambitious new ESG commitments<\/h2>\n

– Provides fiscal 2021 second quarter adjusted earnings per share guidance range of $0.47 to $0.49; top-line organic growth expected to turn positive<\/h2>\n

– Provides fiscal 2021 full year adjusted earnings per share guidance range of $2.45 to $2.55; represents a 9 to 14% increase year over year<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n CORK, Ireland<\/span>, Jan. 29, 2021<\/span> \/PRNewswire\/ —\u00a0Johnson Controls International plc (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, today reported fiscal first quarter 2021 GAAP earnings per share (“EPS”) from continuing operations, including special items, of $0.45<\/span>. Excluding these items, adjusted EPS from continuing operations was $0.43<\/span>, up 8% versus the prior year period (see attached footnotes for non-GAAP reconciliation). <\/p>\n

Sales of $5.3 billion<\/span> decreased 4% compared to the prior year and declined 5% organically, reflecting the continued impact of the COVID-19 pandemic.\u00a0\u00a0 <\/p>\n

GAAP net income from continuing operations was $327 million<\/span>. Adjusted net income from continuing operations was $311 million<\/span>, up 2% versus the prior year. Earnings before interest and taxes (“EBIT”) was $492 million<\/span> and EBIT margin was 9.2%. Adjusted EBIT was $471 million<\/span> and adjusted EBIT margin was 8.8%, an increase of 80 basis points versus prior year results, despite the revenue decline.<\/p>\n

“2021 is off to a strong start with solid financial performance in our fiscal first quarter, demonstrating our continued commitment to disciplined execution, in what remains a challenging market environment,” said George Oliver<\/span>, chairman and CEO. “The continued benefits from our actions taken in fiscal 2020 to reduce structural costs, combined with ongoing efforts to minimize discretionary expenses, enabled us to achieve record first quarter profitability and free cash flow. Although many of our end markets remain under pressure due to the ongoing impacts of the pandemic, we further advanced our strategic growth initiatives, with continued reinvestment in our businesses to ensure we are best positioned for the recovery.\u00a0 As we progress into the second quarter, we expect to return to organic revenue growth, with strong margin expansion and year-over-year growth in earnings per share.” <\/p>\n

Mr. Oliver added, “Our OpenBlue digital technologies are reinventing the building landscape, creating dynamic smart facilities that help our customers meet their sustainability commitments, while delivering healthy places, enriched experiences and cost savings. Our vision for a healthy world centers on healthy buildings, which means delivering on the most critical elements to serve People, Places and the Planet. We believe we are uniquely positioned to lead the industry in translating new building technology capabilities into game-changing solutions that deliver on that vision.”<\/p>\n

In a separate press release issued today, Johnson Controls announced an ambitious set of new Environmental, Social & Governance (ESG) commitments, science-based targets as well as a net zero carbon pledge to support a healthy, more sustainable planet over the next two decades.<\/p>\n

“Our commitments reinforce the urgency to make positive changes that will improve the health of our planet, and we believe we are uniquely positioned to help customers and suppliers achieve their sustainability goals, in addition to our own,” said Katie McGinty<\/span>, vice president & chief sustainability, government and regulatory affairs officer at Johnson Controls.\u00a0 “We are excited to step up the role we play and will continue to innovate and uncover new pathways to meet our goals which will contribute to healthier people, healthier places and a healthier planet.” <\/p>\n

\n Income and EPS amounts attributable to Johnson Controls ordinary shareholders
<\/b>
\n ($ millions, except per-share amounts) <\/b>\n <\/p>\n

The financial highlights presented in the tables below are in accordance with GAAP, unless otherwise indicated. All comparisons are to the first fiscal quarter of 2020. <\/p>\n

Organic sales, total segment EBITA, adjusted segment EBITA, adjusted corporate expense, EBIT, adjusted EBIT, adjusted net income from continuing operations, adjusted EPS from continuing operations and free cash flow are non-GAAP financial measures. For a reconciliation of these non-GAAP measures and detail of the special items, refer to the attached footnotes. A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls’ website at http:\/\/investors.johnsoncontrols.com<\/a>.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $5,576<\/span>\n <\/p>\n<\/td>\n

\n

\n $5,341<\/span>\n <\/p>\n<\/td>\n

\n

\n $5,576<\/span>\n <\/p>\n<\/td>\n

\n

\n $5,341<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA<\/span>\n <\/p>\n<\/td>\n

\n

\n 623<\/span>\n <\/p>\n<\/td>\n

\n

\n 642<\/span>\n <\/p>\n<\/td>\n

\n

\n 625<\/span>\n <\/p>\n<\/td>\n

\n

\n 642<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n EBIT<\/span>\n <\/p>\n<\/td>\n

\n

\n 308<\/span>\n <\/p>\n<\/td>\n

\n

\n 492<\/span>\n <\/p>\n<\/td>\n

\n

\n 448<\/span>\n <\/p>\n<\/td>\n

\n

\n 471<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net income from continuing operations<\/span>\n <\/p>\n<\/td>\n

\n

\n 159<\/span>\n <\/p>\n<\/td>\n

\n

\n 327<\/span>\n <\/p>\n<\/td>\n

\n

\n 306<\/span>\n <\/p>\n<\/td>\n

\n

\n 311<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Diluted EPS from continuing operations<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.21<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.45<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.40<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.43<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\n SEGMENT RESULTS<\/b>\n <\/p>\n

\n Building Solutions North America <\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,167<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,034<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,167<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,034<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA<\/span>\n <\/p>\n<\/td>\n

\n

\n 258<\/span>\n <\/p>\n<\/td>\n

\n

\n 255<\/span>\n <\/p>\n<\/td>\n

\n

\n 259<\/span>\n <\/p>\n<\/td>\n

\n

\n 255<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA Margin %<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Sales in the quarter of $2.0 billion<\/span>, decreased 6% versus the prior year. Organic sales also declined 6% versus the prior year, driven by a decline in project installations and, to a much lesser extent, service.\u00a0 Strong growth in Performance Solutions was more than offset by a decline in Fire & Security and HVAC & Controls. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, decreased 7% year-over-year driven by lower demand due to the COVID-19 pandemic. Backlog at the end of the quarter of $5.9 billion<\/span> increased 1% compared to the prior year, excluding M&A and adjusted for foreign currency.<\/p>\n

Adjusted segment EBITA was $255 million<\/span>, down 2% versus the prior year. Adjusted segment EBITA margin of 12.5% expanded 50 basis points versus the prior year driven by significant cost mitigation actions and restructuring benefits as well as positive mix, which more than offset the impact of the volume decline.\u00a0 <\/p>\n

\n Building Solutions EMEA\/LA <\/b>(Europe<\/span>, Middle East<\/span>, Africa<\/span>\/Latin America<\/span>)<\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $928<\/span>\n <\/p>\n<\/td>\n

\n

\n $906<\/span>\n <\/p>\n<\/td>\n

\n

\n $928<\/span>\n <\/p>\n<\/td>\n

\n

\n $906<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA<\/span>\n <\/p>\n<\/td>\n

\n

\n 90<\/span>\n <\/p>\n<\/td>\n

\n

\n 95<\/span>\n <\/p>\n<\/td>\n

\n

\n 90<\/span>\n <\/p>\n<\/td>\n

\n

\n 95<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA Margin %<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 9.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Sales in the quarter of $906 million<\/span> decreased 2% versus the prior year. Organic sales declined 5% versus the prior year driven by a decline in project installations. Volumes declined across all regions and platforms.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, increased 2% year-over-year driven by service. Backlog at the end of the quarter of $1.8 billion<\/span> increased 5% year-over-year, excluding M&A and adjusted for foreign currency.<\/p>\n

Adjusted segment EBITA was $95 million<\/span>, up 6% versus the prior year. Adjusted segment EBITA margin of 10.5% expanded 80 basis points over the prior year, including a 20 basis point headwind related to foreign currency. Adjusting for foreign currency, underlying EBITA margin expanded 100 basis points as positive mix and mitigating cost actions more than offset the impact of the volume decline.\u00a0 <\/p>\n

\n Building Solutions Asia Pacific <\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $629<\/span>\n <\/p>\n<\/td>\n

\n

\n $615<\/span>\n <\/p>\n<\/td>\n

\n

\n $629<\/span>\n <\/p>\n<\/td>\n

\n

\n $615<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA<\/span>\n <\/p>\n<\/td>\n

\n

\n 72<\/span>\n <\/p>\n<\/td>\n

\n

\n 79<\/span>\n <\/p>\n<\/td>\n

\n

\n 72<\/span>\n <\/p>\n<\/td>\n

\n

\n 79<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA Margin %<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Sales in the quarter of $615 million<\/span> decreased 2% versus the prior year. Organic sales declined 6% versus the prior year driven by a decline in project installations which more than offset growth in service.\u00a0 Although China<\/span> continues to rebound, declines continue in certain other parts of the region.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, decreased 1% year-over-year as growth in service was more than offset by a decline in project activity.\u00a0 Significantly improved demand in China<\/span> was offset by further declines in Japan<\/span>, Hong Kong<\/span> and South East Asia.\u00a0 Backlog at the end of the quarter of $1.8 billion<\/span> increased 12% year-over-year, excluding M&A and adjusted for foreign currency.<\/p>\n

Adjusted segment EBITA was $79 million<\/span>, up 10% versus the prior year. Adjusted segment EBITA margin of 12.8% expanded 140 basis points over the prior year as favorable mix and the benefit of mitigating cost actions more than offset the impact of the volume decline.\u00a0 \u00a0\u00a0<\/p>\n

\n Global Products<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,852<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,786<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,852<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,786<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA<\/span>\n <\/p>\n<\/td>\n

\n

\n 203<\/span>\n <\/p>\n<\/td>\n

\n

\n 213<\/span>\n <\/p>\n<\/td>\n

\n

\n 204<\/span>\n <\/p>\n<\/td>\n

\n

\n 213<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Segment EBITA Margin %<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Sales in the quarter of $1.8 billion<\/span> decreased 4% versus the prior year. Organic sales declined 2% versus the prior year as low double-digit growth in residential was more than offset by a decline in commercial HVAC, Fire & Security and Industrial Refrigeration.\u00a0 <\/p>\n

Adjusted segment EBITA was $213 million<\/span>, up 4% versus the prior year. Adjusted segment EBITA margin of 11.9% expanded 90 basis points versus the prior year as positive price\/cost and the benefit of mitigating cost actions more than offset the impact of the volume decline and negative mix.\u00a0 <\/p>\n

\n Corporate<\/b>\n <\/p>\n

\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Fiscal Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n GAAP<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Adjusted<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2020<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n 2021<\/b>
\n <\/u>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Corporate Expense<\/span>\n <\/p>\n<\/td>\n

\n

\n ($118)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($67)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($81)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($67)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Adjusted Corporate expense was $67 million<\/span> in the quarter, a decrease of 17% compared to the prior year, driven primarily by mitigating cost actions and continuous structural cost reductions.<\/p>\n

\n OTHER ITEMS<\/b>\n <\/p>\n