Oct. 31, 2013: Johnson Controls Reports Record Fourth Quarter Income
Building Efficiency Segment Had Higher Revenues and Income Despite a Soft Global Market
Johnson Controls noted that its Building Efficiency segment realized higher revenues and income despite a soft global market environment. Sales in the fiscal 2013 fourth quarter were $3.9 billion, 2 percent higher than $3.8 billion in the same quarter last year, with double digit growth in North America Service and higher revenues in Asia partially offset by lower sales in Global Workplace Solutions. Residential HVAC sales increased 13 percent as demand was positively impacted by improved market conditions in North America.
Orders in the quarter were 2 percent higher year-over-year, marking the second consecutive quarter of improvement. The backlog of projects at the end of the quarter, adjusted for divestitures and foreign exchange, declined 5 percent to $4.8 billion primarily due to lower activity in Europe and the Middle East.
Building Efficiency segment income was $357 million, up 9 percent from $327 million in the fiscal 2012 fourth quarter, primarily as a result of ongoing cost reduction initiatives and favorable pricing/mix. North America Service fourth quarter 2013 segment income increased 34 percent due primarily to improved pricing, cost reduction initiatives, and better labor utilization. Global Workplace Solutions (GWS) fourth quarter 2013 segment income increased 16 percent as its business improvement program continued to improve profitability. The company noted that for the full 2013 fiscal year, GWS margins have nearly doubled, to 2.3 percent.
Publication date: 10/28/2013