MILWAUKEE — Johnson Controls, Inc. (JCI) has reported record sales and income from continuing operations for the second quarter of fiscal 2008. Sales increased 11 percent reflecting growth in each of its businesses. Diluted earnings per share from continuing operations increased to 48 cents from 44 cents last year (adjusted for a 3-for-1 stock split effective October 2, 2007); excluding non-recurring tax benefits in the second quarter of fiscal 2007, diluted earnings per share from continuing operations increased 30 percent, from 37 cents. The reported earnings per share are at the top of the range forecast by the company in January. Each of the company’s businesses increased quarterly profits by more than 25 percent versus last year.
The company also confirmed its full-year 2008 earnings guidance of 18 percent year-over-year growth.
Chairman and Chief Executive Officer Stephen Roell said, "We continue to deliver strong sales and earnings growth in each of our businesses. We are executing on our growth strategies and improving our productivity and cost structure. Our focus on delivering greater value by improving comfort, safety and sustainability and our increasing presence in growing international markets will enable us to achieve a record performance in 2008."
Sales for the quarter ended March 31, 2008, rose 11 percent to a record $9.4 billion from $8.5 billion last year. Segment income was $453 million, up 29 percent from $351 million in the 2007 quarter. Income from continuing operations was $289 million, 28 percent higher than the prior year’s $225 million (excluding the non-recurring tax benefits) due to the higher segment income.
The fiscal 2008 full-year earnings outlook provided by the company on October 9, 2007, remains unchanged with diluted earnings per share from continuing operations increasing approximately 18 percent to $2.45 to $2.50 from $2.10 in 2007. The company increased its revenue forecast for the full year and now expects sales to grow 13 percent to $39 billion, versus the earlier guidance of $38 billion.
For the third quarter of fiscal 2008, the company forecasts diluted earnings per share from continuing operations to increase 12 to 15 percent, to 74 cents to 76 cents. This forecast excludes the potential impact on vehicle production from a prolonged labor strike of a supplier to a North American automotive customer.
Roell said, "All three of our businesses participate in large, growing global markets. In addition, a significant portion of our revenues comes from recurring sources like commercial building services and aftermarket automotive batteries. Our business backlogs are strong and growing, giving us good visibility of our future earnings performance. We are focused on improving our cost structure, which will result in continued increases in the profitability of each of our businesses. With our diversified business portfolio, we are well positioned to achieve sustainable, profitable growth and are confident in our ability to achieve our financial targets."
For more information about JCI, visit: http://www.johnsoncontrols.com.
