Johnson Controls Earnings Increase 11% on Record Third-Quarter Sales

Tag : Cooling Component

Johnson Controls, Inc.(JCI) today reported record sales and earnings for the thirdquarter of fiscal 2008.

Sales for the quarter ended June 30, 2008 increased to $9.9billion, up 11% from $8.9 billion for the 2007 third quarter.Segment income was $645 million, a 13% increase over $573 millionlast year, with all three businesses reporting double-digitimprovements. Net income increased 11% to $439 million comparedwith $396 million last year. Diluted earnings per share totaled$0.73, up 11% from $0.66 last year.
"Johnson Controls achieved record results despite the difficultconditions in the domestic automotive and residential constructionmarkets which affect approximately 20% of our revenues," saidStephen A. Roell, chairman and chief executive officer. "Wecontinue to grow due to our unique ability to help customersimprove their competitiveness, especially in the areas of energyefficiency and sustainability. We also continue to benefit from ourstrong presence in emerging growth markets and our increasingshares in the large markets for buildings and batteries."

Building efficiency sales were $3.7 billion, up 13% compared with2007 revenues of $3.2 billion. The increase reflects higher salesin all commercial building segments, with double-digit improvementsin North America, Europe and Asia. High energy prices are apositive driver for the building efficiency business as customersincreasingly turn to Johnson Controls solutions that reducebuilding operating costs while improving comfort, safety andsustainability. Global workplace solutions sales grew by 19% in thequarter as the result of new contracts and the expansion ofexisting projects. The company's residential HVAC business reporteda 17% decline in sales compared to 2007.

Johnson Controls said that in the third quarter it received anorder for 18 water-cooled chillers as part of a district coolingsystem under construction in the Middle East. The contract is thesingle largest HVAC equipment order in the company's history and isindicative of the significant growth opportunities in the region,where an estimated $1 trillion of commercial new construction isplanned or under construction.