Johnson Controls Lifts Outlook on Higher 3Q Profit, Sales

Dow Jones
07/29
 

Johnson Controls International raised its outlook for the year after logging higher profit and sales in the latest quarter, boosted by continued margin expansion and sustained order momentum.

The industrial conglomerate, which makes equipment for heating, ventilation and air conditioning, said Wednesday that it now expects organic sales growth from continuing operations of 8% for the year, up from a prior outlook of 6% growth.

Adjusted earnings from continuing operations are now projected to come in at $5.05 a share for the full year, up from a previous forecast of $4.85 a share. That's ahead of the $4.90 a share that analysts polled by FactSet expected.

Chief Executive Joakim Weidemanis said the company's fiscal third-quarter performance and continued momentum gave it confidence to raise its outlook.

Shares climbed 5.9%, to $148.49, in premarket trading.

Johnson Controls posted net income of $749 million, or $1.23 a share, for its three months ended June 30, compared with $701 million, or $1.07 a share, a year earlier.

Stripping out certain one-time items, earnings came in at $1.42 a share for the quarter. Analysts polled by FactSet expected adjusted earnings of $1.30 a share.

Sales rose 9.3% to $6.61 billion, ahead of Wall Street models for $6.46 billion.

Weidemanis attributed the higher profit and sales to continued margin expansion and sustained order momentum.

"While we remain early in our journey deploying our proprietary business system, the progress we are seeing demonstrates the potential to further improve execution, productivity and customer outcomes," he said.

For the current quarter, Johnson Controls expects adjusted earnings of $1.55 a share and organic sales growth of 9% to 10% from continuing operations.

 
 

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