The results qualify 2004 as the company’s 58th consecutive year of sales increases and the 14th straight year of increased earnings. JCI’s sales totaled $US26.6 billion, 17 per cent higher than the $US22.6 billion for the year ended September 30, 2003.
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The growth in revenues reflects a 20 per cent increase in Automotive Group sales of seating, interiors and batteries, and a 9 per cent increase in sales by the Controls Group, which includes the Control and Facilities Management Group, part of which is JCI’s Integrated Security Solutions Division. Operating income for the Control Group increased 12 per cent, reaching $US1.3 billion compared with the prior year’s $US1.2 billion.
Net income for fiscal 2004 was $US818 million, up 20 per cent from $US683 million. The net income increase was aided by higher equity income and a lower effective tax rate. Diluted earnings per share for 2004 were 18 per cent higher, reaching $US4.24 compared with $US3.60 for the prior year.
In terms of fourth-quarter results, sales for the 3 months ended September 30, 2004 increased 13 per cent to $US6.8 billion from $US6.0 billion for the same period of 2003. Operating income was $US414 million, up 15 per cent from last year’s $US360 million.
Net income rose 24 per cent to $US273 million, up from $US220 million for the fourth quarter of 2003. The increase was aided by a lower effective tax rate and lower “miscellaneous-net” expenses. Diluted earnings per share increased 22 per cent to $US1.41 for 2004 from $US1.16.
The tax provision in the quarter benefited from a lower base effective tax rate and a $US10 million favorable resolution of worldwide tax audits, which together contributed $US.09 to diluted earnings per share.
