Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Q1 2012 Earnings Presentation
14 slides from Johnson Controls International's earnings presentation, Jan 19, 2012
Slide 1: Quarterly update FY 2012 first quarter
Quarterly update FY 2012 first quarter January 19, 2012
Slide 2: Agenda
Agenda Introduction Glen Ponczak, Vice President, Global Investor Relations Overview Steve Roell, Chairman and Chief Executive Officer Business results and financial review Bruce McDonald, Executive Vice President and Chief Financial Officer Q&A FORWARD-LOOKING STATEMENT Johnson Controls, Inc.
Slide 3: Macro environment
2012 first quarter Macro environment Mixed automotive industry production – Higher production (16%) in North America – Lower production (4%) in Europe but with some strength in luxury segments – Level production in China Unseasonably warm winter temperatures – Negative impact on aftermarket batt
Slide 4: Record sales and earnings
2012 first quarter Record sales and earnings Sales: $10.4 billion Record sales and earnings vs. $9.5 billion in 2011 (+9%) ─ Benefitted from strong backlogs in Automotive Segment income: $598 million Experience and Building vs. $533 million in Q1 2011 (+12%) Efficiency – Results consistent wit
Slide 5: Segment highlights: Automotive, Building Efficiency, Power Solutions
2012 first quarter Automotive Experience Significantly higher profitability in Europe Taking action (acquisition impact), Asia to improve profitability Launched 48 programs Automotive: Hired 300 Six Sigma Blackbelts and quality experts Higher North America metals start-up costs Building Effic
Slide 6: 2012 Outlook: capital expenditures
2012 Outlook Continuing our investment commitment for future growth and profitability Our fundamental growth and profitability $1.7 Billion (est.) story is intact Capital expenditures – Capacity, footprint expansions, emerging markets, vertical integration 71% of 2012 Expansion, capital expenditur
Slide 7: Automotive Experience
2012 first quarter Automotive Experience 2012 2011 Return on sales by Net sales $5.3B $4.6B 15% geography 15% increases in all geographic regions N. America: 4% – Up 6%, excluding acquisitions Europe: 1% Asia: 15% China sales (mostly non-consolidated): up 10% to $1.1 billion Segment income
Slide 8: Building Efficiency
2012 first quarter Building Efficiency 2012 2011 Commercial backlog Net sales $3.5B $3.4B 4% and orders (at December 31, 2011) Higher revenues in N. America, Asia, GWS Record $5.3B, up 8% – Asia up 13% Backlog up in all – Global Workplace Solutions up 10% geographic markets, – Europe and N.A.
Slide 9: Power Solutions
2012 first quarter Power Solutions 2012 2011 Net sales $1.6B $1.6B 4% Aftermarket volumes down 1% – Impact of unseasonably warm winter temperatures Benefitted from favorable product mix Changxing, China Facility Lower Asia volumes due to Shanghai plant shut-down Segment income $271M $217M 25%
Slide 10: First quarter 2012 Financial highlights
First quarter 2012 Financial highlights % 2012 2011 (in millions) (reported) (reported) change Sales $10,417 $9,537 9% Gross profit 1,532 1,414 8% % of sales 14.7% 14.8% SG&A expenses 1,054 947 11% Equity income 120 66 82% Segment income $598 $533 12% 5.7% 5.6% FX – Euro to U.S. dollar average exc
Slide 11: First quarter 2012 Financial highlights
First quarter 2012 Financial highlights 2012 2011 (in millions, except earnings per share) (reported) (reported) Segment income $598 $533 Financing charges - net 49 35 Income before taxes 549 498 Income tax provision 104 95 Net income 445 403 Income attributable to non-controlling interests 35 28 Ne
Slide 12: Balance sheet / cash flow
2012 first quarter Balance sheet / cash flow $350 million of pension and post-retirement funding Excluding 2012 pension and post-retirement funding, cash provided by operations increased $120 million from Q1 2011 Improvements in trade working capital in the quarter Increased capital spending
Slide 13: Factors impacting revised guidance
Factors impacting revised guidance Factors Q2 Q3/Q4 Power Solutions weather-related volumes Indefinite shut-down of Power Solutions Shanghai facility Automotive N. America metals start-up ($0.10 - ($0.01 - European production volumes $0.12) / $0.02) / (19.6 million units, down 3.5% versus original a
Slide 14: Revised fiscal 2012 outlook
Revised fiscal 2012 outlook October January guidance revisions Consolidated net $44.2B $43.5B (up 7%) sales EPS – Q2 -- $0.52 - $0.54 EPS – Full Year $2.85 - $3.00 $2.70 - $2.85 (up 13 – 19%) Net financing charges $210M - $220M $220M - $230M Capital expenditures $1.7B unchanged 14