johnson controls inc (JCI) Key Developments
Johnson Controls Inc. Announces Quarterly Dividend, Payable on July 2, 2015
May 20 15
The board of directors of Johnson Controls has authorized a regular quarterly cash dividend of $0.26 per common share. The dividend is payable on July 2, 2015 to shareholders of record as of the close of business on June 5, 2015.
Johnson Controls Venture with Hitachi Appliances Gains Approval
May 19 15
A joint venture pairing Johnson Controls Inc. and Hitachi Appliances to produce and sell commercial air conditioning equipment around the world has received clearance from the fair trade regulatory agency in India. The Competition Commission of India approved the joint venture, projected to generate $2.6 billion in sales for the partners in 2016. Johnson Controls will own 60% of the venture and Hitachi will own the remaining 40%, per terms of the agreement signed in January 2015. Through the joint venture, Johnson Controls will gain access to distribution networks in China and Japan. Hitachi will open new distribution channels for its equipment in North America.
Johnson Controls Announces Partnership with Lawrence Technological University
May 12 15
Johnson Controls Inc. has partnered with Lawrence Technological University to test and develop battery systems in vehicles. Johnson Controls and Lawrence Technological University has unveiled the new Johnson Controls Vehicle Engineering Systems Lab, including a dynamometer. A dynamometer is used to test vehicles in different controlled driving environments and accelerates understanding of how best to manage battery energy and power transfer in the vehicle. The technology can improve fuel economy and emissions by up to 8%. The company's 48-volt Micro Hybrid system, which gets up to 15% fuel economy, is also part of the R&D with LTU. The partnership, which began in 2014, also focuses on developing the next generation of engineers by involving them in the research projects and teaming them with LTU faculty and Johnson Controls technical experts.
Johnson Controls Launches Containerized GTIAC Mechanical Based Solution
Apr 30 15
Johnson Controls Inc. has launched YCP-2020, a containerized gas turbine inlet air cooling, or GTIAC, mechanical based solution. This new product offering expands the current portfolio of GTIAC solutions. The 8,000 kWth rated YCP-2020 is a containerized system comprising YORK chillers, chilled and condenser water pumps, electrical starters and proprietary Metasys control system. Its compact, modular design minimizes site space requirements, allows flexibility in layout configuration, as well as reduces shipping and logistics costs. This addresses critical challenges for existing and new build power plants. The installed gas turbine power plant capacity is forecast to grow at an average Compound Annual Growth Rate of 7.5% across Asia. GTIAC solutions can enhance power output by up to 30% and efficiency by up to 4%. Mechanical based GTIAC solutions are more dependable than wet evaporative or fogging based ones. Fogging based approach has limited effectiveness in higher humidity conditions and cannot maintain fixed inlet temperature. These systems also require a continuous supply of demineralized water and care is needed to avoid corrosion. YCP-2020 will be manufactured, assembled and tested at one of Johnson Controls' manufacturing facilities located at Wuxi in China. The Wuxi facility operates to the company's stringent global manufacturing and supply chain quality standards, with a manufacturing capacity of 6,000 chillers per year.
Johnson Controls Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended March 31, 2015; Updates Earnings Guidance for the Full Year of 2015; Provides Earnings Guidance for the Third Quarter of 2015
Apr 23 15
Johnson Controls Inc. announced unaudited consolidated earnings results for the second quarter and six months ended March 31, 2015. For the quarter, the company reported net sales of $9,198 million against $9,467 million a year ago. Income from continuing operations before income taxes was $611 million against $537 million a year ago. Net income from continuing operations was $479 million or $0.68 per diluted share against $436 million or $0.61 per diluted share a year ago. Net income attributable to company was $529 million or $0.80 per diluted share against $261 million or $0.39 per diluted share a year ago. Cash provided by operating activities was $360 million against $730 million a year ago. Capital expenditures were $294 million against $257 million a year ago.
For the six months, the company reported net sales of $18,822 million against $18,964 million a year ago. Income from continuing operations before income taxes was $1,246 million against $1,103 million a year ago. Net income from continuing operations was $996 million or $1.40 per diluted share against $899 million or $1.25 per diluted share a year ago. Net income attributable to company was $1,036 million or $1.56 per diluted share against $730 million or $1.08 per diluted share a year ago. Cash provided by operating activities was $200 million against $449 million a year ago. Capital expenditures were $556 million against $602 million a year ago.
The company updated earnings guidance for the full year of 2015. In December 2014, the Company provided full year earnings guidance of $3.55 - $3.70 per diluted share including the GWS contribution of approximately $0.20. With GWS reported as a discontinued operation, the Company is
updating its full-year guidance from continuing operations to $3.30 to $3.45 per diluted share for fiscal 2015, a year-over-year increase of 10 to 15 percent. The updated guidance assumes current foreign exchange rates with the negative currency impact substantially offset by lower commodity prices and improved operating efficiencies. The Company also reaffirmed its full fiscal year guidance for segment margin improvements in all three of its businesses.
For the third quarter of 2015, the Company provided earnings guidance from continuing operations of $0.90 to $0.92 per share, up 14% to 16%.