Johnson Controls International plc (NYSE: JCI) announced its fiscal second quarter results, including a set of immediate actions in response to the evolving conditions and unprecedented uncertainty related to the novel coronavirus (COVID-19) pandemic.
“The health and wellness of our employees and their families will continue to be our priority. In an effort to protect our employees, including those on the front lines supporting customers and in all facilities, we have taken extra precautions to ensure this priority is met. I would like to thank each of our 105,000 employees for their continuous efforts in the battle against COVID-19, and for going the extra mile for our customers and stakeholders,” said George Oliver, chairman and CEO.
“We have also taken decisive actions to control operating costs and further enhance our liquidity position. Given our strong balance sheet and the improved fundamentals built over the past two years, I believe we are in an excellent position to weather the economic uncertainty and capitalize on the recovery,” Oliver said. “Since the start of this crisis, our goal as a company has been twofold – first and foremost, to protect the health and safety of all of our employees and their families. Second, to work diligently with our customers and partners to ensure the continued functionality of critical infrastructure and essential facilities around the world. I am proud to say that our teams have exceled on both fronts.”
“Our position as the leader in intelligent and sustainable building solutions enables Johnson Controls to deliver the outcomes that matter most to our customers. The depth and breadth of our product portfolio, combined with proven expertise and expansive global footprint provides us with a unique advantage as the evolution of the built environment accelerates,” Oliver added.
Johnson Controls financial position remains strong, with access to liquidity including two senior revolving credit facilities – a one-year $500 million facility and a five-year $2.5 billion facility. Given the increasingly uncertain environment, the Company has taken proactive measures to increase near-term financial flexibility, electing to opportunistically raise $675 million via European financing arrangements and $575 million in bank term loans. In addition, as planned the Company repaid with existing cash a $500 million bond that matured in March 2020.
The Company reported fiscal second quarter 2020 GAAP earnings per share (“EPS”) from continuing operations, including special items, of $0.28. Excluding these items, adjusted EPS from continuing operations was $0.42, up 31% versus the prior year period (see attached footnotes for non-GAAP reconciliation).
Sales of $5.4 billion decreased 6% compared to the prior year and declined 5% organically. This includes a 6 to 7 percentage point headwind related to the estimated impact of COVID-19.
GAAP earnings before interest and taxes (“EBIT”) was $308 million and EBIT margin was 5.7%. Adjusted EBIT was $440 million and adjusted EBIT margin was 8.1%, in-line with prior year results. Adjusted EBIT was negatively impacted by approximately $80 to $100 million attributable to the estimated net impact of COVID-19.
Please click here to view the full press release.
SOURCE: Johnson Controls
