{"id":520626,"date":"2021-07-30T06:58:19","date_gmt":"2021-07-30T10:58:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/johnson-controls-reports-solid-third-quarter-results-and-raises-full-year-guidance\/"},"modified":"2021-07-30T06:58:19","modified_gmt":"2021-07-30T10:58:19","slug":"johnson-controls-reports-solid-third-quarter-results-and-raises-full-year-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/johnson-controls-reports-solid-third-quarter-results-and-raises-full-year-guidance\/","title":{"rendered":"Johnson Controls reports solid third quarter results and raises full year guidance"},"content":{"rendered":"
\n

– GAAP EPS of $0.80; Adjusted EPS of $0.83, up 24% versus prior year<\/h2>\n

– Reported sales +19% versus prior year; +15% organic<\/h2>\n

– Organic order growth accelerated to +18% year-over-year, with strong underlying momentum; Backlog of $10.0 billion increased 7% organically year-over-year<\/h2>\n

– Cash provided by operating activities was $0.9 billion; Free cash flow of $0.7 billion<\/h2>\n

– Completed acquisition of Silent-Aire, establishing a leading position in the high growth hyperscale data center vertical<\/h2>\n

– Provides fiscal 2021 fourth quarter adjusted earnings per share guidance range of $0.86 to $0.88<\/h2>\n

– Raises fiscal 2021 adjusted EPS guidance to $2.64 to $2.66, an increase of 18% to 19% year-over-year<\/h2>\n

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

\n

\n CORK, Ireland<\/span>, July 30, 2021<\/span> \/PRNewswire\/ —\u00a0Johnson Controls International plc (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, today reported fiscal third quarter 2021 GAAP earnings per share (“EPS”) from continuing operations, including special items, of $0.80<\/span>. Excluding these items, adjusted EPS from continuing operations was $0.83<\/span>, up 24% versus the prior year period (see attached footnotes for non-GAAP reconciliation). <\/p>\n

\n

“We delivered another strong quarter of growth, profitability and cash flow in the quarter,” said George Oliver<\/span>, CEO<\/div>\n

Sales of $6.3 billion<\/span> increased 19% compared to the prior year on an as reported basis, and up 15% organically. GAAP net income from continuing operations was $574 million<\/span>. Adjusted net income from continuing operations of $598 million<\/span> increased 19% versus the prior year. Earnings before interest and taxes (“EBIT”) was $825 million<\/span> and EBIT margin was 13.0%. Adjusted EBIT was $848 million<\/span> and adjusted EBIT margin was 13.4%, an increase of 20 basis points versus prior year results.<\/p>\n

“We delivered another strong quarter of growth, profitability and cash flow in the third quarter,” said George Oliver<\/span>, chairman and CEO. “We remain committed to executing both on our core operating fundamentals and on the strategic actions underway to accelerate growth, deliver on sustainability, expand our digital and service offerings, and strengthen future profitability.\u00a0 Additionally, we welcomed the Silent-Aire family into Johnson Controls, increasing our focus on the very attractive data center vertical,” Oliver said.\u00a0 <\/p>\n

“Overall demand patterns continue to improve, including our longer cycle project installations, and most of our businesses are back to operating at or near pre-pandemic levels. We continue to proactively manage short-term challenges related to global supply chain disruptions, inflation and regional COVID resurgences and our team has remained laser focused on meeting our customer needs. Looking ahead, we are confident that the strength in orders, resilient backlog, and actions we’ve taken over the last year position us well to deliver on our commitments,” Oliver added. \u00a0<\/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 third fiscal quarter of 2020. <\/p>\n

Organic sales, adjusted 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 Q3<\/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 $5,343<\/span>\n <\/p>\n<\/td>\n

\n

\n $6,341<\/span>\n <\/p>\n<\/td>\n

\n

\n $5,343<\/span>\n <\/p>\n<\/td>\n

\n

\n $6,344<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 839<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,020<\/span>\n <\/p>\n<\/td>\n

\n

\n 850<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,027<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n (65)<\/span>\n <\/p>\n<\/td>\n

\n

\n 825<\/span>\n <\/p>\n<\/td>\n

\n

\n 707<\/span>\n <\/p>\n<\/td>\n

\n

\n 848<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n (182)<\/span>\n <\/p>\n<\/td>\n

\n

\n 574<\/span>\n <\/p>\n<\/td>\n

\n

\n 502<\/span>\n <\/p>\n<\/td>\n

\n

\n 598<\/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 ($0.24)<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.80<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.67<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.83<\/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

\u00a0<\/p>\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 Q3<\/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 $2,020<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,212<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,020<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,212<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 307<\/span>\n <\/p>\n<\/td>\n

\n

\n 326<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 326<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 15.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n 14.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 14.7%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

Sales in the quarter of $2.2 billion<\/span> increased 10% versus the prior year. Organic sales increased 8% over the prior year, with growth in both service and project installations, driven by double digit growth in Fire & Security and Performance Contracting and to a lesser extent growth in HVAC & Controls. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, increased 18% year-over-year. Backlog at the end of the quarter of $6.2 billion<\/span> increased 6% compared to the prior year, excluding M&A and adjusted for foreign currency.<\/p>\n

Adjusted segment EBITA was $326 million<\/span>, up 5% versus the prior year. Adjusted segment EBITA margin of 14.7% declined 70 basis points versus the prior year as the benefit of volume leverage and the SG&A actions taken this year were more than offset by the significant temporary cost mitigation actions taken in the prior year.\u00a0 <\/p>\n

\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 Q3<\/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 $756<\/span>\n <\/p>\n<\/td>\n

\n

\n $962<\/span>\n <\/p>\n<\/td>\n

\n

\n $756<\/span>\n <\/p>\n<\/td>\n

\n

\n $962<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 62<\/span>\n <\/p>\n<\/td>\n

\n

\n 103<\/span>\n <\/p>\n<\/td>\n

\n

\n 62<\/span>\n <\/p>\n<\/td>\n

\n

\n 103<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 8.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 8.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.7%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

Sales in the quarter of $962 million<\/span> increased 27% versus the prior year. Organic sales grew 17% versus the prior year led by a sharp rebound in project installation activity.\u00a0 Additionally, service revenues grew double digits organically. Strength was broad based across our businesses, led by Fire & Security and Industrial Refrigeration. By region, Europe<\/span> experienced strong growth, while growth in Latin America<\/span> was more modest and the Middle East<\/span> remained under pressure.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, increased 22% year-over-year. Backlog at the end of the quarter of $2.0 billion<\/span> increased 9% year-over-year, excluding M&A and adjusted for foreign currency.<\/p>\n

Adjusted segment EBITA was $103 million<\/span>, up 66% versus the prior year. Adjusted segment EBITA margin of 10.7% expanded 250 basis points over the prior year driven by volume leverage and the benefit of SG&A actions taken this year.\u00a0 \u00a0\u00a0<\/p>\n

\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 Q3<\/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 $588<\/span>\n <\/p>\n<\/td>\n

\n

\n $712<\/span>\n <\/p>\n<\/td>\n

\n

\n $588<\/span>\n <\/p>\n<\/td>\n

\n

\n $712<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 92<\/span>\n <\/p>\n<\/td>\n

\n

\n 84<\/span>\n <\/p>\n<\/td>\n

\n

\n 92<\/span>\n <\/p>\n<\/td>\n

\n

\n 84<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 15.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.8%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

Sales in the quarter of $712 million<\/span> increased 21% versus the prior year. Organic sales grew 14% versus the prior year with solid growth in both service and project installations, driven by strong growth in Commercial Applied HVAC & Controls. China<\/span> remains the primary source of growth, with the rest of Asia<\/span> mixed due to ongoing lockdown restrictions in many regions.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

Orders in the quarter, excluding M&A and adjusted for foreign currency, increased 14% year-over-year, led by continued strong demand for Commercial HVAC in China<\/span> and recovery in the Controls business in Japan<\/span>. 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 $84 million<\/span>, down 9% versus the prior year. Adjusted segment EBITA margin of 11.8% declined 380 basis points versus the prior year including a 20 basis point headwind related to foreign currency.\u00a0 The benefit of volume leverage and the SG&A actions taken this year were more than offset by the significant temporary cost mitigation actions taken in the prior year and geographic mix.\u00a0 <\/p>\n

\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 Q3<\/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 $1,979<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,455<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,979<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,458<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 378<\/span>\n <\/p>\n<\/td>\n

\n

\n 507<\/span>\n <\/p>\n<\/td>\n

\n

\n 385<\/span>\n <\/p>\n<\/td>\n

\n

\n 514<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 19.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 20.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 19.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 20.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

Sales in the quarter of $2.5 billion<\/span> increased 24% versus the prior year. Organic sales grew 21% versus the prior year driven by strong growth across Commercial and Residential HVAC and Fire & Security products.\u00a0 <\/p>\n

Adjusted segment EBITA was $514 million<\/span>, up 34% versus the prior year. Adjusted segment EBITA margin of 20.9% expanded 140 basis points versus the prior year as volume leverage, positive mix, increased equity income and the benefit of SG&A actions taken this year more than offset the significant temporary cost mitigation actions taken in the prior year as well as price cost pressure.\u00a0 \u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

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

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

\n
\n Fiscal Q3<\/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 ($67)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($70)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($48)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($70)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

Adjusted Corporate expense was $70 million<\/span> in the quarter, an increase of 46% compared to the prior year, driven primarily by the non-recurrence of the significant temporary cost mitigation actions taken in the prior year.\u00a0 <\/p>\n

\u00a0<\/p>\n

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