Johnson Controls reports record revenues

The 2012 quarter includes pre-tax restructuring charges of $52 million, partially offset by non-recurring tax benefits of $22 million, resulting in net charge of $0.03 per diluted share. The 2011 third quarter included non-recurring pre-tax charges of $29 million or $0.04 per share. "While we saw a significant improvement in profitability in the third quarter, sluggish demand in some of our key markets along with a much weaker Euro resulted in lower top line growth than we expected," said Stephen A. Roell, Johnson Controls chairman and chief executive officer. "Despite challenging markets, Building Efficiency segment income improved by 28 percent over last year as the business continues to gain market share." Mr. Roell continued, "General weak demand in the automotive aftermarket was a negative for battery shipments in the quarter. At the same time, the prices for the spent battery cores we use in recycling lead hit an all-time high in the quarter, negatively impacting profitability. We do not expect this unusual combination of soft demand and higher input costs to continue past the fourth fiscal quarter. Automotive Experience benefitted from the higher auto production levels in North America, but the downturn in Europe slowed progress in our efforts to reduce operational inefficiencies," he said. The company said that the restructuring initiated in the third quarter is targeted to improve profitability in Building Efficiency and Automotive Experience as well as to address the softness in some of its underlying markets. Additional restructuring actions are expected in the fourth quarter. Figures: - Record net revenues of $10.6 billion vs. $10.4 billion in Q3 2011, up 2 percent - Excluding the impact of foreign exchange, revenues increased 7 percent - Income from business segments of $615 million compared with $541 million a year ago, up 14 percent - Net income of $441 million vs. $383 million in Q3 2011, up 15 percent - Diluted earnings per share of $0.64 vs. $0.56 last year