Johnson Controls, a global technology and industrial leader, has reported a 22 percent increase in revenues for the third quarter of fiscal 2010, with higher sales in each of its three business segments.
Net income in the quarter ended June 30 rose to $418 million (61 cents per share), up from $163 million (26 cents per share), in the same period last year. Revenue rose 22 percent to $8.54 billion. The company also said earnings for fiscal 2010 are expected to be at the high end of its previously disclosed guidance.
Excluding a non-cash tax benefit of $51 million, net income in the quarter was $367 million (54 cents per share). The company pointed out that the adjusted numbers provide a more meaningful comparison of its underlying operating performance.
Sales of automotive components—which include lead-acid batteries, hybrid batteries and vehicle interiors—rose 43 percent to $4.2 billion due primarily to higher production volumes and new program launches.
Power Solutions segment income was up 27 percent to $135 million versus $106 million in the third quarter of 2009. Building Efficiency sales in the 2010 third quarter were $3.2 billion, up two percent compared with last year.
"We are pleased with our third quarter results,” said chairman and chief executive officer Stephen A. Roell. “We capitalized on the recovery in several of our markets, leveraging our market leadership and improved cost structure to gain share and improve profitability.
“Sales in our automotive and power businesses grew at a double-digit pace, and our Building Efficiency business generated top-line growth for the first time in more than a year. In addition, the Building Efficiency order rate increased nine percent, nearly double the pace of the second quarter, which exceeded our expectations.”
Looking towards the rest of the year, Roell said: "As we enter the final quarter of our fiscal year, automotive production forecasts along with the higher buildings order rate and backlog support our expectations for continued improvements in sales and income. We will continue to use our strong balance sheet and cash flows to make strategic investments that will help us further outpace the growth rates of our markets. We believe we are positioned to deliver sustainable, profitable growth."
