Johnson Controls Rides Out Tough Q1 With Eye On Smart Buildings.
Johnson Controls Rides Out Tough Q1 – Johnson Controls International said a ransomware attack and economic slowdowns in China contributed to a tough first quarter 2024.
JCI sales in the quarter of $US6.1 billion were flat compared to the prior year and declined 1 per cent organically. GAAP net income from continuing operations was $374 million, while adjusted net income from continuing operations was $350 million.
“We continued to position Johnson Controls for the future, delivering solid first quarter results and appointing Marc Vandiepenbeeck as CFO,” said Johnson Controls Chairman and CEO George R. Oliver.
“Our value proposition of making buildings smarter, healthier and more sustainable is resonating with our customers and translating into record backlog. After managing through a temporary cyber disruption and the seasonality of the first quarter, we are entering the new calendar year with accelerating momentum.
“The management team continues to simplify and transform the company into a comprehensive solutions provider for commercial buildings,” Oliver said.
“As part of the continuous evaluation of our portfolio, we are in the early stages of pursuing strategic alternatives of our non-commercial businesses, in line with our objective to maximize value to our shareholders.”
Johnson Controls Rides Out Tough Q1
Of note in the earnings report was in the Asia Pacific building solution report, which saw sales in the quarter of $507 million, a decline of 22 per cent versus the prior year. Organic sales declined 21 per cent versus the prior year as mid single-digit service growth was offset by weakness in China.
“As the economic environment in China has slowed, we continue to make sure that we’re streamlined with our organization and aligning our resources to the market to be able to maximize what we believe is our entitlement,” Oliver said.
“And then we will make sure that we’re executing with discipline to achieve what we see to be very strong life cycle value creation with our services. This is what we played out in North America, and it has been very successful for us.”
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“Johnson Controls Rides Out Q1 With Eye On Smart Buildings.”
