Johnson Controls International plc Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2017; Reaffirms Earnings Guidance for the Full Year Fiscal 2018; Provides Tax Rate Guidance for the Fiscal Year 2019
January 31, 2018 at 11:55 am
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Johnson Controls International plc reported unaudited consolidated earnings results for the first quarter ended December 31, 2017. For the quarter, the company reported net sales of $7,435 million against 7,086 million a year ago. Income from continuing operations before income taxes was $538 million against $385 million a year ago. Income from continuing operations was $271 million against $412 million a year ago. Net income attributable to the company was $230 million against $329 million a year ago. Diluted earnings per share were $0.25 against $0.35 a year ago. Cash used by operating activities was $129 million against $1,885 million a year ago. Capital expenditures were $230 million against $371 million a year ago. EBIT was $654 million against $521 million a year ago. Adjusted non-GAAP EBIT was $748 million against $757 million a year ago. Adjusted non-GAAP income from continuing operations before income taxes was $632 million against $638 million a year ago. Adjusted non-GAAP net income attributable to the company was $502 million against $502 million a year ago. Adjusted earnings per share for the company were $0.54 against $0.59 a year ago. Adjusted earnings per share for the company from continuing operations was $0.54 against $0.53 a year ago. Negative free cash flow was $0.4 billion against $2.3 billion a year ago. Adjusted negative free cash flow was $0.3 billion against $0.3 billion a year ago. Total net debt as at December 31, 2017 was $11,948 million against $13,251 as at September 30, 2017.
The company re-affirms full year fiscal 2018 guidance for adjusted EPS from continuing operations in the range of $2.75 to $2.85. For the year 2018, the company expects effective tax rate will be 14%. For 2018, the company is on track to deliver 80%-plus adjusted free cash flow conversion, excluding the net onetime items that communicated in last quarter. Based on current outlook, the company would expect EPS to be weighted roughly 38% in the first half and 62% in the second half compared to normal 40-60 split. The company expects CAPEX of $1.3 billion for the year.
For the fiscal year 2019, the company effective tax rate to increase to a range of 16% to 18% based upon the effective dates of certain provisions of the new legislation.
Johnson Controls International Plc specializes in the design, manufacturing and marketing of equipment for the regulation and safety of buildings. Net sales break down by family of products and services as follows:
- building regulation, integrated management and security equipment, systems and services (64.1%): refrigeration, ventilation, air conditioning, heating systems, access control systems, anti-intrusion, video surveillance, safety and protection devices and fire detection and suppression systems, etc. to commercial and industrial buildings. At the same time, the group provides installation and maintenance services. Net sales break down by geographic region between North America (60.1%), Europe/Middle East/Africa/Latin America (23.9%) and Asia/Pacific (16%);
- heating, air conditioning, refrigeration, fire protection and security systems for residential and commercial uses (35.9%).
Net sales break down by source of revenue between sales of products (75.6%) and services (24.4%).
Net sales are distributed geographically as follows: the United States (52.3%), Asia-Pacific (20.9%), Europe (18.2%) and other (8.6%).
Johnson Controls International plc Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2017; Reaffirms Earnings Guidance for the Full Year Fiscal 2018; Provides Tax Rate Guidance for the Fiscal Year 2019
JOHNSON CONTROLS INTERNATIONAL PLC 
