Johnson Controls Q1 FY'14 revenues up 5%

 Highlights include:

- Net sales of $10.9 billion, up 5 percent from $10.4 billion in the 2013 first quarter.

- Income from business segments of $686 million vs. $549 million, up 25 percent versus the 2013 first quarter.

- Net income of $469 million, or $0.69 per diluted share, compared with net income of $359 million, or $0.52 per diluted share in the 2013 first quarter.

"The significant improvement in profitability resulted from our focus on execution and cost discipline. We also benefitted from the higher levels of global automotive production," said Alex Molinaroli, Johnson Controls chairman and chief executive officer.

"While Building Efficiency revenues were lower than last year, there are early indications of improving global commercial buildings markets, which should positively impact the business later in the year. The results in the quarter are consistent with the expectations we disclosed at our analyst day in December."

The company noted that there were several significant events in the 2014 first quarter:

-  A 16 percent increase in its quarterly dividend and the completion of $1.2 billion in share repurchases as part of an overall $3.6 billion, three-year program
- Business portfolio activities including:
- An agreement to sell its remaining Electronics business.
- A memorandum of understanding to create a joint venture with Hitachi to expand its Building Efficiency product offerings.
- Launch of a strategic review of its Automotive Interiors business.
- Awarded the largest Building Efficiency contract in company history: State of Hawaii energy savings project

Business results

Automotive Experience revenues in the fiscal first quarter of 2014 were $5.8 billion, up 10 percent compared to the 2013 quarter, reflecting higher automotive production in all geographic regions.

Automotive industry production in the quarter increased 5 percent in North America, 2 percent in Europe and 14 percent in China. Seating and Interiors sales increased at a double digit rate, while Electronics sales were up 7 percent. Revenues in China, which are primarily related to Seating and generated through non-consolidated joint ventures, increased 33 percent to $1.9 billion.

Automotive Experience segment income was $232 million, more than double the $101 million reported in the first quarter of 2013. The increase was primarily led by improvements in the company's Seating business, with segment income of $176 million in the current quarter, compared with $85 million last year.

The Automotive Experience improvement was a result of the higher global production levels, benefits from cost reduction initiatives and improved operational performance in the company's metals and mechanisms business.

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Johnson Controls