Johnson Controls reports lower revenue on strong dollar

Glendale-based Johnson Controls Inc. today reported fiscal second quarter net income of $557 million, or 80 cents per share, up from $293 million, or 39 cents per share, in the second quarter of 2014.

Operating income was $611 million, up from $537 million in the same period a year ago.

The building efficiency segment led the way with income of $166 million, up 31 percent year-over-year.

Revenue totaled $9.2 billion, down from $9.5 billion in the second quarter of 2014.

The company attributed the revenue decrease to unfavorable foreign currency translation. Excluding that impact, revenue was up 4 percent. There were also transaction/integration costs of $18 million.

“I am very pleased with our second quarter results,” said Alex Molinaroli, chairman and chief executive officer. “Our businesses showed increased underlying growth and delivered higher margins that we believe are sustainable. We saw broad-based order growth in Building Efficiency, continuing a trend that we began to see at the end of the first quarter. Despite foreign currency headwinds, profitability increased across the business segments. This is, in part, a result of the early benefits from the Johnson Controls Operating System which is improving our manufacturing and procurement efficiencies. We expect those benefits to increase in value and broaden in scope over the next several years as we continue to invest in these areas.”

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