Johnson Controls releases first quarter results

Johnson Controls, global leader of automotive interiors, building efficiency and power solutions, reported net sales of $7.3 billion and a loss of $608 million for the first quarter of fiscal 2009. The Milwaukee based company announced on December 16, 2008 that it expected a loss in the quarter, and excluding non-recurring, non-cash charges, the loss in the quarter was $82 million. ┬á These 2009 first quarter results compare with net sales of $9.5 billion and income of $235 million for the first quarter of 2008.┬á Automotive experience sales in the quarter declined 32 percent to $3.1 billion versus $4.6 billion last year due to significantly lower worldwide production volumes. Building efficiency sales in the 2009 first quarter were $3.1 billion, down 5 percent from $3.2 billion last year, and power solutions sales in the first quarter were $1.1 billion, down 32 percent from $1.7 billion last year, primarily reflecting the impact of lower lead prices as well as lower volumes.┬á "While we are disappointed to report a loss in the quarter, we are addressing the challenges by improving our cost structure and preserving our liquidity," said Stephen A. Roell, chairman and chief executive officer of Johnson Controls. "We continue to invest in our businesses to provide long- term value to our customers."┬á "The market environment and uncertainties we face are expected to continue in the second quarter," said Roell, but "we are implementing strategies to take advantage of opportunities in the marketplace.ÔÇØ┬á During its first fiscal quarter, Johnson Controls was selected by the United States Department of Energy as one of 16 companies to participate in an $80 billion contract to improve energy efficiency projects in Federal Buildings. The company said it had expanded its government sales force to take advantage of the significant growth opportunities in the government market.┬á The company also announced today a contract with O'Reilly Auto Parts, a new customer for Johnson Controls, for shipment to begin in February to more than 1,000 Checker Auto Parts, Kragen Auto Parts and Schuck's Auto Supply stores nationally. Johnson Controls said it expects to report a overall loss in its fiscal second quarter similar in scale to the first quarter's operating loss but with improved performance by its building efficiency and power solutions businesses. It also said its previously announced restructuring program is progressing according to plan.