European slowdown takes toll on Johnson Controls

Glendale-based Johnson Controls Inc. reported first fiscal quarter net income of $354 million, or 52 cents per share, down from $424 million, or 62 cents per share, in the same period a year ago.

The company’s quarterly net sales were $10.4 billion, flat from the same period last year.

Johnson Controls’ Automotive Experience segment’s quarterly income was $101 million, 50 percent lower than in the first quarter of 2012. The decrease was a result of improvements in North America being more than offset by higher engineering and product development costs, the impact of lower volumes in Europe, as well as operational inefficiencies the company is taking steps to address.

“Our first quarter results were in-line with the expectations we announced during our earnings release last October. Global demand in our markets was softer than a year ago, but we benefitted from the strong backlog of business we had entering the fiscal year,” said Stephen Roell, chairman and chief executive officer of Johnson Controls. “European demand continued to soften and we began restructuring initiatives in the third and fourth quarters of fiscal 2012 to improve our performance in the region. We expect to realize the benefits of those actions in the second half of the year.”

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

No posts to display