MILWAUKEE -- For the second quarter of fiscal 2009, Johnson Controls reported net sales of $6.3 billion and a loss of $193 million, or 33 cents per diluted share. These results compare with net sales of $9.4 billion and income of $289 million, or 48 cents per diluted share, for the second quarter of 2008.
The second quarter 2009 results include restructuring charges of $230 million ($185 million net of tax), $81 million in non-recurring tax benefits and a $7 million tax benefit resulting from the increase in the first quarter effective tax rate from 24 percent to 31 percent. Excluding these items, the loss in the quarter was 16 cents per diluted share.
"As we indicated three months ago, the second fiscal quarter was going to be challenging due to the depressed automotive production volumes. During the quarter, we implemented additional cost reduction initiatives and actions to enhance our liquidity position," said Stephen Roell, Johnson Controls chairman and chief executive officer. "We started to see improvements in the financial performance of our Automotive Experience business toward the end of the second quarter, and we expect significantly lower operating losses in the third quarter. We believe the automotive improvement, combined with the solid profitability of our Building Efficiency and Power Solutions businesses, will enable us to report positive earnings for the remainder of 2009."
Power Solutions sales in the second quarter were $905 million, down 38 percent from $1.5 billion in the year ago period. Lower lead prices and currency translation negatively impacted revenues; overall unit volumes were 9 percent lower. Original equipment automotive battery volume was lower in both North America and Europe due to the decline in auto production levels, while aftermarket demand was comparable with last year.
Power Solutions segment income was $66 million in the second quarter, down 46 percent from $121 million last year. The company said the decline was due primarily to the lower unit volume, costs associated with footprint consolidations as well as increased investments for expansion in Asia and hybrid batteries.
In the second quarter, the company was awarded a contract to supply batteries in certain markets to Genuine Parts/NAPA, a new customer for Johnson Controls.
