Burscheid, Germany/Milwaukee, Wisconsin (ots)
- Johnson Controls,
Inc. (JCI) today reported that its fourth quarter 2005 earnings from
continuing operations rose 15% on a sales increase of 7%.
John M. Barth, Chairman and Chief Executive Officer, said "We are
pleased to report record quarterly and full-year results, continuing
our track record for growth. In 2005 we broadened our capabilities,
expanded our addressable markets and strengthened the foundation for
improved profitability. Our company enters 2006 as the global leader
in each of our businesses and with a strong financial position.
We appreciate the efforts of our employees and their commitment to
increase the value we deliver to our customers and our shareholders."
Johnson Controls sales for the 2005 fourth quarter totaled $6.9
billion, up 7% from $6.4 billion last year. Operating income was $436
million, up 14% from $384 million last year. Income from continuing
operations totaled $293 million, up 15% from $255 million in the 2004
period. Diluted earnings per share from continuing operations for the
2005 fourth quarter were $1.50 versus $1.31 in the prior year.
During the fourth quarter, the company recorded an $8.7 million
adjustment, net of tax, reducing the gain on sale of discontinued
operations in the second quarter of 2005. Including this one-time
reduction, diluted earnings per share were $1.45, up from $1.41.
Interior experience sales were $4.5 billion, up 4% from the $4.4
billion in the prior year. The increase was associated with the
launch of new business which was partially offset by the
deconsolidation of a North American joint venture during the third
quarter of 2005.
Excluding the deconsolidation, sales for the fourth quarter would
have increased 9%. Industry light vehicle production in North America
is estimated to have been approximately 3% higher than the prior year
amount while European production is estimated to have been 2-3%
lower. Operating income declined 13%, to $206 million versus $238
million for the 2004 fourth quarter, primarily due to higher
commodity costs which more than offset the benefit of operational
Power solutions sales increased 37% to $864 million from $632
million last year as a result of organic growth in North America and
Europe, the impact of the Delphi battery acquisition and the
consolidation of a Latin American joint venture in late 2004.
Operating income rose 79% to $114 million from $64 million,
reflecting the higher volume, favorable product mix, improved quality
and operational efficiencies.
Building efficiency sales increased 5% to $1.5 billion for the
fourth quarter from $1.4 billion in 2004, primarily due to higher
North American systems and services activity for both new
construction and existing buildings. Operating income was $115
million, 40% above the 2004 amount of $83 million, reflecting growth
of higher-margin service business and the timing of benefits
associated with efficiency and cost improvement initiatives in the
North American branch office network. The backlog of uncompleted
contracts at the end of 2005 was 5% higher than one year ago.
Capital expenditures for the 2005 fiscal year decreased to $675
million, in line with earlier guidance. At September 30, 2005, the
company's total debt to total capitalization declined to 28% from 34%
at the prior year-end, despite funding acquisitions and the company's
voluntary $180 million contribution to its U.S. pension plans in
Fiscal 2006 Guidance
On October 11, 2005, Johnson Controls issued guidance on its
expected performance for 2006. Fiscal 2006 sales are anticipated to
increase approximately 15%, to $32 billion.Earnings per share from
continuing operations are estimated to increase 13 to 17%, to a range
of $5.00 to $5.15. For the first quarter of 2006, Johnson Controls
said it anticipates sales of $6.8 billion and earnings per share from
continuing operations of $0.82 to $0.85.
The company said it expects that its previously announced
acquisition of York International will be completed in December 2005.
Johnson Controls is a global leader in interior experience,
building efficiency and power solutions. The company provides
innovative automotive interiors that help make driving more
comfortable, safe and enjoyable. For buildings, it offers products
and services that optimize energy use and improve comfort and
security. Johnson Controls also provides batteries for automobiles
and hybrid electric vehicles, along with systems engineering and
service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is
headquartered in Milwaukee, Wisconsin. For additional information,
please visit www.johnsoncontrols.com
Originaltext: Johnson Controls GmbH
digital press kits: http://presseportal.de/story.htx?firmaid=19526
press kits via RSS: feed://presseportal.de/rss/pm_19526.rss2
Johnson Controls GmbH
Tel.: +49 2174 65-3189
Fax: +49 2174 65-3219