12 slides from Johnson Controls International's earnings presentation, Jan 22, 2008
Slide 1: Forward-looking statements and Quarterly update FY 2008 first quarter
Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal 2008 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact are statem
Slide 2: Agenda
Agenda Overview Steve Roell - Chairman and Chief Executive Officer Q1 business results Keith Wandell - President and Chief Operating Officer Financial review Bruce McDonald - Executive Vice President and Chief Financial Officer Q&A (conclude at noon Eastern time)
Slide 3: First quarter 2008 results in-line with our expectations
First quarter 2008 Results in-line with our expectations Sales up 16% to record $9.5 billion Some markets strong, some challenging Segment income up 25% to $374 million Income from continuing operations a record $235 million $0.39 per diluted share vs. $0.28 in Q1 2007, up 39% Thanks to our manageme
Slide 4: Business environment
Automotive experience North American production at 14.0 million (vs. 14.8 million in Oct. 2007) European production up Emerging markets strong Power solutions Replacement market demand stable globally Building efficiency International construction markets remain robust NA construction down slightly:
Slide 5: Continuing our track record of success
Continuing our track record of success.......... Significant growth opportunities in each of our businesses Investing in innovation Customer focus; strong relationships Strength in international markets Sustainability leadership Diversification: business, geography, customer Reduces impact of short-
Slide 6: Full-year 2008 outlook
Full-year 2008 outlook Sales growth of 10% to $38 billion 62nd consecutive record year Earnings growth of 18% to approx. $2.45 - $2.50 per share 18th consecutive record year $1.1 - $1.3 billion free cash flow No change to full-year guidance issued October 9, 2007 Key assumptions vs. October 2007 (-)
Slide 7: Building Efficiency Highlights
First quarter 2008 Building Efficiency Highlights Market share gains Equipment: chiller shipments up double digits in North America, Asia Technical services: double digit increases globally Residential HVAC Completed HVAC equipment and service acquisitions New rooftop, residential HVAC equipment lau
Slide 8: Power Solutions Highlights
First quarter 2008 Power Solutions Highlights Expanded VW relationship in Europe PowerFrame Europe roll-out continuing on-track Announced non-lead price increase to recover higher commodities Sulfuric acid, polypropylene up 200% since summer 2007 Hybrid batteries Awarded contracts for Chery, SAIC in
Slide 9: Automotive Experience Highlights
First quarter 2008 Automotive Experience Highlights Significant new orders for riACT safety headrest system New electronics customers: Ford, Nissan, VW New orders from PSA, VW in Europe New and enhanced technologies well-received at Detroit auto show Chery joint ventures (China) on track for 2008/09
Slide 10: Financial highlights
First quarter 2008 Financial highlights FX - Euro to U.S. Dollar average exchange rate at $1.45 vs $1.29 Sales - Excluding impact of FX, sales growth of 10% SG&A - Growth initiatives in Building Efficiency; New programs in Automotive Europe and Asia; FX impact of 4% Equity income - U.S. Air impact d
Slide 11: Financial highlights
First quarter 2008 Financial highlights Financing charges - Lower debt to total capitalization offset by FX impact on interest expense associated with Euro and Yen denominated debt components Minority interests - Lower reflecting lower earnings in certain international operations Earnings per share
Slide 12: Second quarter 2008 outlook
Second quarter 2008 outlook Diluted earnings per share of $0.46 - $0.48 vs. $0.44 in 2007 second quarter including one-time tax benefits Excluding 2007 one-time benefits, Q2 2008 diluted EPS from continuing operations increase 24 - 30% Continued global growth in Building Efficiency Sustained profita