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JOHNSON CONTROLS REPORTS RECORD RESULTS FOR 1993

 MILWAUKEE, Oct. 27 /PRNewswire/ -- Johnson Controls, Inc. (JCI) (NYSE: JCI) today reported record sales and net income for the 12 months ended Sept. 30, 1993, excluding the effect of adopting several accounting standards effective Oct. 1, 1992.
 Sales for the year rose 20 percent to $6,181.7 million from $5,156.5 million for 1992. Excluding the accounting changes, 1993 operating income increased to $318.4 million, up 20 percent from $265.5 million for 1992 while net income increased 18 percent to $145.0 million from $123.0 million. Primary and fully diluted earnings per share were $3.36 and $3.20, respectively, for 1993 (excluding accounting changes) compared with $2.86 and $2.73, respectively, for the prior year.
 Johnson Controls said it adopted Statements of Financial Accounting Standards No. 106 ("Employers' Accounting for Postretirement Benefits Other Than Pensions"), No. 109 ("Accounting for Income Taxes") and No. 112 ("Employers' Accounting for Postemployment Benefits"). The adoption of these standards reduced 1993 operating income by $20.1 million and lowered the 1993 effective tax rate to 45 percent from 46.5 percent. Before the cumulative effect of the accounting standards, 1993 after-tax income was reduced by $7.1 million ($.20 and $.22 on a primary and fully diluted per share basis). The cumulative after-tax effect of the accounting changes was $122 million and is reflected in restated results for the 1993 first quarter. Also, the company said that it has restated the results for its first three quarters of fiscal 1993 to reflect the adoption of the accounting standards.
 Following are comments on business segment results. The comparisons of operating income are between 1993 amounts excluding the accounting changes and 1992 amounts:
 -- Automotive seating sales increased 50 percent over the prior year to $2,556.4 million from $1,701.3 million. The company said that the increase reflects an expanded market share in North America as well as the higher rate of domestic vehicle production. The consolidation of a European subsidiary also aided the gain in sales. Operating income rose to $118.8 million, up 58 percent over the prior year's $75.0 million. According to Johnson Controls, the higher volume in North America more than offset lower results in Europe where vehicle sales are significantly lower.
 -- Sales of facility services and control systems for 1993 were $2,040.3 million, 5 percent higher than $1,948.1 in 1992 while operating income rose 8 percent to $90.9 million versus $83.9 million. The company said that the improved results reflect growth in retrofit, service and operations and maintenance sales to the worldwide existing commercial buildings market. Sales to the new commercial construction and government services markets were slightly lower compared with a year ago. Worldwide orders from the commercial market for both new and existing buildings were higher than in the year ago period.
 -- Battery sales declined slightly, to $684.7 million from $688.7 million for 1992. Unit shipments edged slightly higher to a new record, however, lower lead costs reduced the dollar sales. Operating income increased 5 percent to $42.6 million from $40.7 million due to a significant improvement in operating efficiencies which more than offset charges, of approximately $10 million on a pre-tax basis, associated with the announced closings of two manufacturing facilities.
 -- Plastics sales increased by 10 percent to $900.3 million from $818.4 million, reflecting higher sales of plastic bottles in the North American and European markets. Operating income was approximately level, with the 1993 amount totalling $66.1 million compared with $65.9 million for 1992. The company said that the benefit of increased shipments of custom hot-fill bottles was offset by lower pricing in the North American soft drink bottle market and lower machinery sales.
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share)
 For the Year Ended September 30,
 1993 Including 1993 Excluding
 Accounting Accounting
 Changes (A) Changes (A) 1992
 Net sales $6,181.7 $6,181.7 $5,156.5
 Cost of sales 5,248.3 5,238.4 4,365.9
 Gross profit 933.4 943.3 790.6
 Selling, general and
 administrative expenses 635.1 624.9 525.1
 Operating income 298.3 318.4 265.5
 Interest income 5.8 5.8 8.2
 Interest expense (47.7) (47.7) (48.2)
 Miscellaneous - net (5.7) (5.7) 2.2
 Other income (expense) (47.6) (47.6) (37.8)
 Income before income taxes 250.7 270.8 227.7
 Provision for income taxes 112.8 125.8 104.7
 Income before cumulative
 effect of accounting changes 137.9 145.0 123.0
 Cumulative effect of accounting
 changes, net of income taxes (122.0) - -
 Net income $15.9 $145.0 $123.0
 Earnings available for
 common shareholders $6.8 $137.0 $114.9
 Earnings per share before
 cumulative effect of
 accounting changes (B)
 Primary $3.16 $3.36 -
 Fully diluted $2.98 $3.20 -
 Earnings per share (B)
 Primary $0.17 $3.36 $2.86
 Fully diluted $0.17 (C) $3.20 $2.73
 For the Year Ended September 30,
 1993 1993 1992
 Weighted Average Shares (in millions)
 Primary 40.8 40.8 40.1
 Fully diluted 44.3 44.3 43.8
 BUSINESS SEGMENTS
 (In millions)
 For the Year Ended September 30,
 1993 Including 1993 Excluding
 Accounting Accounting
 Changes (A) Changes (A) 1992
 Net sales
 Automotive $2,556.4 $2,556.4 $1,701.3
 Controls 2,040.3 2,040.3 1,948.1
 Plastics 900.3 900.3 818.4
 Battery 684.7 684.7 688.7
 Total $6,181.7 $6,181.7 $5,156.5
 Operating income
 Automotive $113.1 $118.8 $75.0
 Controls 84.3 90.9 83.9
 Plastics 62.2 66.1 65.9
 Battery 38.7 42.6 40.7
 Total $298.3 $318.4 $265.5
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share; unaudited)
 For the Three Months Ended September 30,
 1993 1993
 Including Excluding
 Accounting Accounting
 Changes (A) Changes (A) 1992
 Net sales $1,631.6 $1,631.6 $1,450.6
 Cost of sales 1,364.1 1,361.7 1,209.3
 Gross profit 267.5 269.9 241.3
 Selling, general and
 administrative expenses 169.2 166.8 149.3
 Operating income 98.3 103.1 92.0
 Interest income 1.4 1.4 1.7
 Interest expense (10.7) (10.7) (11.8)
 Miscellaneous - net (4.7) (4.7) (4.7)
 Other income (expense) (14.0) (14.0) (14.8)
 Income before income taxes 84.3 89.1 77.2
 Provision for income taxes 38.7 42.2 35.5
 Income before cumulative effect
 of accounting changes 45.6 46.9 41.7
 Cumulative effect of accounting
 changes, net of income taxes $0.0 $0.0 $0.0
 Net income $45.6 $46.9 $41.7
 Earnings available for
 common shareholders $43.4 $44.9 $39.7
 Earnings per share before
 cumulative effect of
 accounting changes (B)
 Primary $1.06 $1.10 $0.98
 Fully diluted $1.00 $1.04 $0.93
 Earnings per share (B)
 Primary $1.06 $1.10 $0.98
 Fully diluted $1.00 $1.04 $0.93
 For the Three Months Ended September 30,
 1993 1993 1992
 Weighted Average Shares (in millions)
 Primary 41.0 41.0 40.4
 Fully diluted 44.3 44.3 44.0
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share; unaudited)
 For the Three Months Ended
 Dec. 31, Mar. 31, Jun. 30, Sept. 30,
 1992 (A) 1993 (A) 1993 (A) 1993 (A)
 Net sales $1,511.3 $1,445.1 $1,593.7 $1,631.6
 Cost of sales 1,290.8 1,242.6 1,350.8 1,364.1
 Gross profit 220.5 202.5 242.9 267.5
 Selling, general and
 administrative expenses 147.2 155.5 163.2 169.2
 Operating income 73.3 47.0 79.7 98.3
 Interest income 1.8 1.6 1.0 1.4
 Interest expense (13.4) (12.1) (11.5) (10.7)
 Miscellaneous - net (2.8) (2.0) 3.8 (4.7)
 Other income (expense) (14.4) (12.5) (6.7) (14.0)
 Income before income taxes 58.9 34.5 73.0 84.3
 Provision for income taxes 26.2 15.4 32.5 38.7
 Income before cumulative
 effect of accounting
 changes 32.7 19.1 40.5 45.6
 Cumulative effect of
 accounting changes,
 net of income taxes (122.0) - - -
 Net income ($89.3) $19.1 $40.5 $45.6
 Earnings available for
 common shareholders ($91.6) $16.8 $38.2 $43.4
 Earnings per share before
 cumulative effect of
 accounting changes (B)
 Primary $0.74 $0.42 $0.94 $1.06
 Fully diluted $0.71 $0.39 $0.88 $1.00
 Earnings per share (B)
 Primary ($2.25) $0.42 $0.94 $1.06
 Fully diluted ($2.25)(C) $0.39 $0.88 $1.00
 For the Three Months Ended
 Dec. 31, Mar. 31, Jun. 30, Sept. 30,
 1992 1993 1993 1993
 Weighted Average Shares
 Primary 40.5 40.7 40.8 41.0
 Fully diluted 44.1 44.2 44.2 44.3
 (A) -- The company has elected early adoption of Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," No. 109, "Accounting for Income Taxes," and No. 112, "Employers' Accounting for Postemployment Benefits". All standards were adopted effective Oct. 1, 1992. The combined cumulative effect of the accounting changes required by these standards is reflected in revised 1993 first quarter results. Adoption of the standards also requires recognition of certain ongoing operating costs in excess of those previously recorded. These costs have been allocated to each quarter of 1993 and are reflected in revised results.
 The combined cumulative effect of the accounting changes was a one time charge of $151.8 million before taxes ($122 million or $2.99 per share on a primary basis and $2.81 per share fully diluted, after taxes). In addition, 1993 earnings from operations were reduced by $20.1 million ($7.1 million or $.20 per share on a primary basis and $.22 per share fully diluted, after taxes) for incremental costs.
 (B) -- Primary earnings per share are computed by dividing net income, after deducting dividend requirements on the Series D Convertible Preferred Stock, by the weighted average number of common shares and common stock equivalents which would arise from the exercise of stock options. Fully diluted earnings per share assume the conversion of the company's Series D Convertible Preferred Stock, if dilutive, plus the dilutive effect of the stock options.
 (C) -- Calculation is anti-dilutive.
 -0- 10/27/93
 /CONTACT: Glen Ponczak of Johnson Controls, 414-228-2375/
 (JCI)


CO: Johnson Controls, Inc. ST: Wisconsin IN: AUT SU: ERN

BM -- CL008 -- 7331 10/27/93 13:13 EDT
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