Johnson Controls Reports Sales of $5.3 billion decreased 4%

Johnson Controls International plc (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, today reported fiscal first quarter 2021 GAAP earnings per share (“EPS”) from continuing operations, including special items, of $0.45. Excluding these items, adjusted EPS from continuing operations was $0.43, up 8% versus the prior year period (see attached footnotes for non-GAAP reconciliation).

Sales of $5.3 billion decreased 4% compared to the prior year and declined 5% organically, reflecting the continued impact of the COVID-19 pandemic.

GAAP net income from continuing operations was $327 million. Adjusted net income from continuing operations was $311 million, up 2% versus the prior year. Earnings before interest and taxes (“EBIT”) was $492 million and EBIT margin was 9.2%. Adjusted EBIT was $471 million and adjusted EBIT margin was 8.8%, an increase of 80 basis points versus prior year results, despite the revenue decline.

“2021 is off to a strong start with solid financial performance in our fiscal first quarter, demonstrating our continued commitment to disciplined execution, in what remains a challenging market environment,” said George Oliver, chairman and CEO. “The continued benefits from our actions taken in fiscal 2020 to reduce structural costs, combined with ongoing efforts to minimize discretionary expenses, enabled us to achieve record first quarter profitability and free cash flow. Although many of our end markets remain under pressure due to the ongoing impacts of the pandemic, we further advanced our strategic growth initiatives, with continued reinvestment in our businesses to ensure we are best positioned for the recovery. As we progress into the second quarter, we expect to return to organic revenue growth, with strong margin expansion and year-over-year growth in earnings per share.”

▪ GAAP EPS of $0.45; Adjusted EPS of $0.43, up 8% versus prior year

▪ Continued sequential quarterly improvement in sales, orders and profitability

▪ Backlog of $9.5B increases 3% organically year-over-year

▪ Cash provided by operating activities was $0.5 billion; Free cash flow of $0.4 billion

▪ Executed $346 million of planned share repurchases in Q1

▪ Announced ambitious new ESG commitments

▪ Provides fiscal 2021 second quarter adjusted earnings per share guidance range of $0.47 to $0.49; top-line organic growth expected to turn positive

▪ Provides fiscal 2021 full year adjusted earnings per share guidance range of $2.45 to $2.55; represents a 9 to 14% increase year over year