MILWAUKEE -- Johnson Controls, Inc. today reported first quarter (fiscal 2006) earnings of $165.4 million, a slight decline from $168.4 million a year ago. The company reported earnings per share from continuing operations of 86 cents, up from 81 cents a year ago, an increase of 6 percent.

The company stated the light drop in earnings were due to costs related to its acquisition of heating and air-conditioning equipment maker York International. In addition, the company confirmed its guidance for double-digit earnings growth on a full-year basis.

"I am pleased to report that we have completed our first quarter in line with our plan. We are delivering on the expectations we set forth in October, and remain confident that 2006 will be another record year for Johnson Controls," said Chairman and CEO John Barth. "Our acquisition of York International was completed on Dec. 9, 2005, and our integration process is beginning to unlock the value this strategic combination will bring to Johnson Controls customers, employees and shareholders.”

For the three months ended Dec. 31, 2005, sales increased 14 percent to a record $7.5 billion from $6.6 billion last year, reflecting organic growth by the interior experience and power solution businesses as well as revenues from the acquisitions of York and the Delphi battery business (effective July 2005).

Operating income was a record $231 million, an increase of 5 percent over $219 million for the prior year. Higher power solutions and European interior experience earnings were partially offset by lower North American interior experience results and costs associated with the York acquisition.

The fiscal 2006 earnings outlook provided by the company in October remains unchanged. The company stated its diluted earnings per share from continuing operations for 2006 will be in a range of $5.00 to $5.15, with expected revenues of approximately $32 billion.

The company expects that its financial position will remain strong, and anticipates that its ratio of total debt to total capitalization will decline to approximately 40 percent by the end of the fiscal year.

For the second quarter of 2006 the company anticipates sales of approximately $8 billion, a 16 percent increase over the second quarter of 2005, and diluted earnings per share from continuing operations of $0.73 to $0.75. Excluding the expected dilutive impact of the York acquisition in the second quarter of approximately $0.19 per share, earnings per share are forecast to increase 8-11 percent, to $0.92 to $0.94, compared with $0.85 the prior year.

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