Earnings Round-Up: Johnson Controls, GE


Johnson Controls Inc. says its earnings went up 19 percent in its second quarter, though its controls group reported a sharp drop in sales. The control and automotive systems supplier reported $157.7 million in net income for the three months ended March 31, compared to $132.2 million in the same period in 2003.

The controls group, which manufactures the company’s security products, had an 11-percent hike in second-quarter sales – from $1.4 billion to $1.5 billion – but the segment’s operating income dropped 16 percent to $55.4 million.

In an April 15 release, Johnson Controls cites investments made to increase technical service staffing levels behind the drop in controls group income, while applauding increased activity in installed systems as driving sales.

In other earnings news:

General Electric Shows Slight Gain: General Electric (GE), parent company of GE Security, showed a 1-percent gain in earnings in its first quarter over 2003 to $3.2 billion, with the company’s business segment that includes security seeing double-digit gains in revenue and profit.

Among the company’s 11 business segments, Infrastructure, which includes GE Security, saw the third-best profit gain in the first quarter, behind Equipment and Advanced Materials and ahead of Healthcare and NBC. Infrastructure had a 15-percent gain in revenue – from $676 million to $776 million – and a 20-percent gain in profit, from $84 million to $113 million in earnings reported April 8.

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