Johnson Controls Reports Dip in Net Revenue in 2016 First Quarter

The company attributes the falloff in net revenue to the deconsolidation of its Automotive Interiors business among other factors.

MILWAUKEE — Johnson Controls reported a dip in year-over-year net revenue for the first quarter of fiscal 2016.

The company reported $8.9 billion in revenue, down from $9.6 billion in Q1 fiscal 2015. Johnson Controls attributes that to “the deconsolidation of the company’s Automotive Interiors business and foreign exchange, partially offset by incremental revenues from the Hitachi joint venture.”

Johnson Controls also reported a net income of $450 million in the quarter, down from $507 million in 2014.

On the flip side, adjusted non-GAAP diluted earnings per share from continuing operations were 82 cents, up 11% from the prior year quarter (74 cents).

“First quarter results continued our track record of sustained profitability improvements,” said Alex Molinaroli, Johnson Controls chairman, president and chief executive officer. “We delivered significant margin expansion in our Power Solutions and Automotive Experience businesses, are seeing positive signs of our North American growth investments in Building Efficiency, and continue to see increasing benefits from the Johnson Controls Operating System across the enterprise. We remain committed to consistent execution with a strong focus on our customers in order to deliver long-term shareholder value.”

Other takeaways include:

  • Segment income from continuing operations of $788 million compared to $719 million a year ago.
  • Segment income margins increased 130 basis points versus the fiscal 2015 first quarter (up 80 base points excluding the impact of the Hitachi and Interiors joint ventures).

Johnson Controls announced on Monday its plan to merge with Tyco International in a $20 billion deal.

Click here for the full report.

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