Johnson Controls International plc has reported fiscal fourth quarter 2018 GAAP earnings per share (EPS) from continuing operations, including special items, of 83 cents. Excluding these items, adjusted EPS from continuing operations was 93 cents, up 7 percent versus the prior year period.

Sales of $8.4 billion increased 3 percent compared to the prior year. Excluding the impacts of M&A, foreign currency and lead prices, total sales grew 6 percent organically.

GAAP earnings before interest and taxes (EBIT) was $1 billion and EBIT margin was 12 percent. Adjusted EBIT was $1.2 billion and adjusted EBIT margin was 14 percent, up 10 basis points over the prior year. Excluding the impact of the Scott Safety divestiture, foreign currency and lead prices, the underlying adjusted EBIT margin increased 50 basis points.

The company also announced that the board of directors has approved an additional $1 billion share repurchase authorization. There is currently $900 million remaining on a previous authorization.

“Solid fourth quarter results close out a year of significant progress for Johnson Controls, with positive momentum as we enter fiscal 2019,” said George Oliver, chairman and CEO. “Our teams around the globe successfully delivered on our operating goals, with strong organic growth and cash flow performance.

“We are in the final stages of the strategic review of our Power Solutions business. We have assessed multiple options and have made significant progress toward making a final decision,” added Oliver. “As we look forward to fiscal 2019, we remain focused on driving execution across our portfolio to further enhance our growth trajectory supported by our strong backlog, order momentum and new business wins. We expect our overall financial performance to continue to improve by intensely focusing on top-line growth, margin expansion and free cash flow conversion.”

Sales in the quarter were $2.3 billion, an increase of 7 percent versus the prior year. Excluding M&A and foreign currency, organic sales increased 8 percent versus the prior year, driven primarily by strong growth in Fire & Security and HVAC & Controls.

Adjusted segment EBITA was $336 million, up 7 percent versus the prior year. Adjusted segment EBITA margin of 14.5 percent was consistent with the prior year as favorable volume leverage as well as cost synergies and productivity savings, were offset by unfavorable mix and salesforce additions.

Sales for the full year were $8.7 billion, representing organic growth of 4 percent versus the prior year. Adjusted segment EBITA for the full year was $1.1 billion and adjusted segment EBITA margin expanded 20 basis points year-over-year to 13.1 percent.

Fiscal 2019 Guidance 

The company also announced fiscal 2019 guidance, including:

• Organic revenue growth in the mid-single digits
• Incremental synergy and productivity savings of $250 million
• Fiscal 2019 adjusted EPS before special items of $2.90 to $3.05, including a $0.12 headwind from an increased tax rate and an 8-cent headwind related to foreign currency.
• Adjusted free cash flow conversion of approximately 90 percent, excluding special items