Johnson Controls (JCI 26.28) reported fourth quarter earnings that, aided by cost cuts, beat the consensus estimate and reaffirmed its expectations for sales, earnings and margin improvements in 2010.
Johnson Controls reported fourth quarter earnings of $0.52 per share, excluding nonrecurring items, $0.01 better than the First Call consensus of $0.51.
Revenues fell 15.5% year-over-year to $7.87 billion; the consensus expected $7.83 billion.
Each segment of the company showed declines. Automotive Experience sales in the quarter declined 14% to $3.5 billion versus $4.1 billion last year due to lower production volumes in North America and Europe. The company said the segment returned to profitability in the fourth quarter due primarily to improved cost structure.
Power Solutions sales in the quarter were $1.1 billion, down 17% from the same period a year ago. Excluding the impact of lower lead prices and currency translation, sales were comparable to last year.
In Building Efficiency, sales were down 16% year-over-year. Johnson Controls said that systems and service revenues were lower due to the overall slowdown in construction spending and the continued deferral of discretionary maintenance and retrofit projects.
Johnson Controls reaffirmed its guidance for fiscal 2010, saying that it sees earnings of $1.35 to $1.45 per share; the consensus currently expects $1.54. The company projects sales to increase approximately 9% to $31 billion; the consensus estimate stands at $31.07 billion. The Milwaukee-based company said that sales, earnings and margin improvements are expected in all three of its businesses in 2010.
Shares of JCI are up 44.7% year-to-date.
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