CORK, Ireland — Johnson Controls Int’l (NYSE: JCI) reported second quarter adjusted earnings per share (EPS) of 53 cents, a 6% increase compared to the same period the prior year. That bested the Zacks Consensus Estimate of 52 cents.
During the quarter, JCI reported revenues of $7.48 billion, higher than the Zacks Consensus Estimate of $7.45 billion. Revenues were up 3% year-over-year. Excluding the impacts of M&A, foreign currency and lead prices, total sales grew 1% organically.
In North America, building solutions sales in the second quarter were $2.1 billion, an increase of 1% compared to the prior year quarter. Excluding M&A and foreign currency, organic sales also increased 1% versus the prior year, driven primarily by solid growth in HVAC & Controls businesses and modest growth in the Fire & Security business.
Orders in the quarter, excluding M&A and adjusted for foreign currency, increased 4% year-over-year. Backlog at the end of the quarter of $5.3 billion increased 5% year-over-year, excluding M&A and adjusted for foreign currency.
Adjusted segment EBITA was $244 million, up 7% comparted to the prior year. Adjusted segment EBITA margin of 11.6% increased 60 basis points driven by cost synergies and productivity savings, as well as favorable volume/mix, partially offset by expected low margin backlog conversion and salesforce additions.
Overall service revenue increased 3% organically with installation revenue up modestly. North America adjusted EBITA of $244 million increased 7% year-over-year and EBITA margins expanded 60 basis points to 11.6%, which includes a 50 basis point benefit due to a lost contract charge in the prior-year quarter.
During an earnings call with investors on Tuesday, JCI Chairman and CEO George Oliver said global demand for commercial HVAC & Controls products is strong, highlighted by continued order strength in Asia, the Middle East and North America.
“The sustained rebound in oil prices continues to ease regional budgetary constraints across the Middle East, and is also driving increased demand for our fire protection and suppression products that serve the harsh and hazardous end markets globally,” he said.
