Burscheid, Germany (PROTEXT/ots) - Johnson Controls, Inc.(JCI) today reported record sales and net income for its yearended September 30, 2001. Fiscal 2001 was the company's 55thconsecutive year of sales increases, its 11th straight year ofrecord earnings and the 26th consecutive year of dividendincreases. James H. Keyes, Johnson Controls chairman and chiefexecutive officer, said "We appreciate the support of ourcustomers, employees and suppliers in this difficult environment.With their support and with the diversity of our businesses andmarkets, we are pleased to have achieved another year ofimprovement."
Full-Year Consolidated Results
Sales for the full year totaled $18.4 billion, up 7% from$17.2 billion for 2000. Both of the company's business groups,automotive and controls, achieved higher revenues. The effect ofcurrency translation reduced Johnson Controls sales for the yearby approximately $600 million. Operating income was $961 millioncompared with the prior year's $965 million as a decline inoperating income from the Automotive Systems Group more thanoffset an increase in the Controls Group income. Net income forfiscal 2001 was $478 million, up from $472 million. Net incomefor 2001 was aided by an increase in equity income. Dilutedearnings per share for 2001 were $5.11 compared with $5.09 forthe prior year.
Johnson Controls said that free cash flow totaled $373million even though capital expenditures were a record $621million. The company's ratio of total debt to totalcapitalization declined to 38% at September 30, 2001 from 41% atthe end of fiscal 2000.
4th Quarter Consolidated Results
Sales for the three months ended September 30, 2001 increased14% to $4.6 billion from $4.1 billion for the same period offiscal 2000. Operating income was $291 million in both years,reflecting an increase in controls income being offset by adecline in automotive income. Net income rose 3% to $156 million,up from $151 million for the fourth quarter of fiscal 2000, whilediluted earnings per share increased to $1.67 for 2001 from$1.63.
Automotive Systems Group (dollars in millions)
4th Quarter
Year
2001
2000
%
2001
2000
% Sales
$3,330.6 2,898.1 15 $13,620.5 12,738.5 7 Operating Income $204.0
220.3 (7)
$720.5
765.2(6) The Automotive Systems Group achieved record sales for boththe fourth quarter and full year. Sales increases for bothperiods reflect new contracts for interior systems and batteriesas well as revenue associated with a Japanese seat manufactureracquired at the end of fiscal 2000. These increases in volumewere partially offset by currency translation rates and lowerlevels of industry vehicle production. Industry productionvolumes in North America are estimated to have declined 10%, and11% respectively, for the three and 12-month periods. Volumes inEurope are estimated to have increased slightly over the prioryear for both periods. Johnson Controls said that for the fourthquarter, its North American automotive interiors sales increased7%, primarily associated with higher shipments of systems for newsport utility vehicles and light trucks. European sales increasedby 4% (after currency translation) in the quarter, largely due tohigher shipment levels in Germany.
The operating margin for the automotive group decreased inboth fiscal 2001 periods. The company said that in the quarter itexperienced lower margins that are typically associated with newvehicle programs, as well as one-time costs associated withchanges made to its network of manufacturing operations. Theseissues more than offset the inclusion of results from theJapanese seat manufacturer and an improvement in South Americanoperations.
Controls Group
(dollars in millions)
4th Quarter
Year
2001
2000
%
2001
2000
% Sales
$1,318.5 1,190.6 11 $4,806.7 4,416.1 9 Operating Income
$87.0
70.3 24
$240.6
199.8 20
The Controls Group supplies nonresidential buildings with abroad line of integrated systems, services and facilitymanagement to improve the quality of indoor environments whilereducing operating and energy costs. Sales and operating incomefor both the year and the fourth quarter were records.
In the fourth quarter, sales in North America increased 9%due to higher demand for installed systems, services andintegrated facility management. In Europe, sales were 50% higheras a result of double-digit organic growth and the inclusion ofthe controls company MC International that was acquired duringthe third quarter of fiscal 2001. Revenues in Asia declined byapproximately 40% reflecting the deconsolidation of a jointventure.
The company commented that demand for its controls offeringsremains strong, with orders during the fourth fiscal quarterexceeding the prior year. Particular areas of strength for NorthAmerican orders were the health care and government retrofitmarkets, while demand for Johnson Controls Metasys( systems wasalso high in the government and education new constructionmarkets. The backlog of uncompleted control system installationcontracts at the end of 2001 was 20% higher than one year ago. Operating margins for the Controls Group increased in both thethree and 12-month periods. The increases reflect the highervolume and the positive effect of productivity and qualitymanagement tools.
Johnson Controls, Inc. is a global market leader inautomotive systems and facility management and control. In theautomotive market, it is a leading supplier of seating andinterior systems and batteries. For non-residential facilities,Johnson Controls provides building control components and systemsand facility management services.
Johnson Controls (New York Stock Exchange: JCI), founded in1885, has headquarters in Milwaukee, Wisconsin. The Europeanheadquarters is in Burscheid, Germany. Its sales for 2000 totaled17.2 billion, the Automotive Systems Group alone accounting for12.7 billion of this figure. In the current "Industry Week"business magazine rankings, Johnson Controls has been listed asone of the top 100 best run companies in the world for the fifthtime in succession.
ots Original Text Service: Johnson Controls GmbH Internet:http://www.presseportal.de
Further information is available from: Johnson Controls GmbHAutomotive Systems Group Claudia Steinhoff Industriestraße 20-30D-51399 Burscheid Tel.: +49 2174/65-3243 Fax: +49 2174/65-3219
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