Johnson Controls International, plc (JCI) saw its loss narrow to $148 million, or $0.16 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $530 million, or $0.81 a share. On an adjusted basis, earnings per share were at $0.50 for the quarter compared with $0.86 in the same period last year. Revenue during the quarter surged 53.54 percent to $7,267 million from $4,733 million in the previous year period. Gross margin for the quarter expanded 420 basis points over the previous year period to 31.39 percent. Total expenses were 93.73 percent of quarterly revenues, up from 93.07 percent for the same period last year. That has resulted in a contraction of 66 basis points in operating margin to 6.27 percent.
Operating income for the quarter was $456 million, compared with $328 million in the previous year period.
"Strong second quarter results, ongoing portfolio actions and an increase in our share repurchase program all demonstrate solid progress towards our 2017 priorities and commitments as a newly combined company. Our leading brands, along with our global footprint and strategic customer relationships, uniquely position us as a world leader in buildings and energy solutions and technologies," said Alex Molinaroli, Johnson Controls chairman & chief executive officer. "Another quarter of double-digit EPS growth, accelerating organic sales growth in Buildings and a continued focus on integration, supports our expectations of 13% to 16% EPS growth for the year," Molinaroli continued.
For financial year 2017, Johnson Controls International, plc projects diluted earnings per share from continuing operations to be in the range of $2.60 to $2.68 on adjusted basis.
For third quarter of year 2017, Johnson Controls International, plc projects diluted earnings per share from continuing operations to be in the range of $0.70 to $0.73 on an adjusted basis.
Operating cash flow turns negative
Johnson Controls International, plc has spent $1,536 million cash to meet operating activities during the first half as against cash inflow of $621 million in the last year period. The company has spent $472 million cash to meet investing activities during the first six months as against cash outgo of $617 million in the last year period. It has incurred net capital expenditure of $616 million on net basis during the first six months, up 16.45 percent or $87 million from year ago period.
Cash flow from financing activities was $1,761 million for the first six months as against cash outgo of $234 million in the last year period.
Working capital increases sharply
Johnson Controls International, plc has recorded an increase in the working capital over the last year. It stood at $2,487 million as at Mar. 31, 2017, up 478.37 percent or $2,057 million from $430 million on Mar. 31, 2016. Current ratio was at 1.23 as on Mar. 31, 2017, up from 1.13 on Mar. 31, 2016.
Debt increases substantially
Johnson Controls International, plc has witnessed an increase in total debt over the last one year. It stood at $13,476 million as on Mar. 31, 2017, up 426.61 percent or $10,917 million from $2,559 million on Mar. 31, 2016. Total debt was 27.17 percent of total assets as on Mar. 31, 2017, compared with 22.04 percent on Mar. 31, 2016. Debt to equity ratio was at 0.67 as on Mar. 31, 2017, up from 0.61 as on Mar. 31, 2016.
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