Johnson Controls International, plc (JCI) has reported a 26.89 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $329 million, or $0.35 a share in the quarter, compared with $450 million, or $0.69 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $502 million, or $0.53 a share compared with $302 million or $0.46 a share, a year ago. Revenue during the quarter surged 50.89 percent to $7,086 million from $4,696 million in the previous year period. Gross margin for the quarter expanded 307 basis points over the previous year period to 29.83 percent. Total expenses were 93.42 percent of quarterly revenues, up from 91.27 percent for the same period last year. That has resulted in a contraction of 215 basis points in operating margin to 6.58 percent.
Operating income for the quarter was $466 million, compared with $410 million in the previous year period.
"First quarter results represent a solid start to the year as we begin executing against our 2017 priorities as a combined company," said Alex Molinaroli, Johnson Controls chairman & chief executive officer. Synergy and productivity benefits, along with strong growth in our global battery aftermarket business contributed to the 10 percent earnings growth in the first quarter," said Molinaroli. “Integration activities are well underway and we expect the benefits of the combination will continue to ramp as the year progresses. Our strong first quarter performance, growing backlog in Buildings and continued favorable mix in Power, make us confident in our adjusted EPS guidance range of $2.60 to $2.75 for the year," Molinaroli continued.
For fiscal year 2017, Johnson Controls International, plc expects diluted earnings per share from continuing operations to be in the range of $2.60 to $2.75 on adjusted basis.
For the second-quarter 2017, On an adjusted basis, Johnson Controls International, plc expects diluted earnings per share from continuing operations to be in the range of $0.48 to $0.50.
Operating cash flow remains negative
Johnson Controls International, plc has spent $1,900 million cash to meet operating activities during the quarter as against cash outgo of $13 million in the last year period.
The company has spent $331 million cash to meet investing activities during the quarter as against cash outgo of $384 million in the last year period. It has incurred capital expenditure of $369 million on net basis during the quarter, up 35.16 percent or $96 million from year ago period.
Cash flow from financing activities was $1,979 million for the quarter, up 824.77 percent or $1,765 million, when compared with the last year period.
Cash and cash equivalents stood at stood at $377 million as at Dec. 31, 2016.
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