Johnson Controls earnings down on restructuring charges

Glendale-based Johnson Controls Inc. today reported fiscal third quarter net income of $196 million, or 26 cents per share, down significantly from $572 million, or 80 cents per share, in the third quarter of 2013.

Net sales were $10.8 billion, up from $10.5 billion in the same period a year ago.

The global industrial firm attributed the earnings dip to restructuring and non-recurring items including: 3Q 2014 pre-tax restructuring charges of $162 million related to the sale of the headliner and sun visor portion of its Automotive Interiors business, 3Q 2014 pre-tax losses of $140 million from divested businesses and other transaction-related costs, 3Q2013 non-recurring tax benefits of $140 million and 3Q2013 pre-tax restructuring charges of $143 million.

“Our performance was consistent with the expectations we disclosed in our second quarter earnings call, with strong overall performance by our automotive and power businesses and margin improvement in Building Efficiency,” said Alex Molinaroli, chairman and chief executive officer. “The overall non-residential HVAC markets remain challenged, but we are starting to see some increased demand in certain vertical markets. While orders are still lower than last year, the institutional building sector started showing some improvement as we exited the quarter.”

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