The stock price of Johnson Controls, Inc. (NYSE: JCI
) held steady in Monday morning’s trading, as the auto parts and construction products supplier reported better-than-anticipated quarterly earnings, notwithstanding such earnings having fallen by 63 percent year-on-year, due to the downturn in economic activity.
Presenting the fiscal third quarter results on Monday, Steve Roell, chairman and chief executive officer of the Milwaukee-based firm, noted: “In most of our global markets this quarter, economic conditions remain very challenging....The cost improvement initiatives we undertook earlier this year are providing the expected benefits”. He added that the company is expecting increased profits by the end of the quarter underway, through to year 2010.
Johnson Controls said for the just ended business period it registered a net profit of $163 million ($0.26 per share), a distinct shortfall from $439 million ($0.73 per share) in the year-earlier matching period. Apart from a one-time tax benefit, the company said it gained $0.25 per share. Wall Street had forecast $0.18 in earnings per share for the recent April – June period.
Third quarter net sales crashed 29 percent to $7 billion, compared to $9.9 billion raked in during the corresponding period of last year. Recent results came in $400 million shy of analysts’ expectations.
Statistics show that the revenue downfall during the period was led by the firm’s automotive parts business line, which went down 38 percent to $3 billion amid a general depression in the auto industry, which saw General Motors Corporation (OTC: GMGMQ
) and privately owned Chrysler LLC reorganising under Chapter 11 protection.
At the time of writing, JCI stock was selling for $22.66, about 5.30 percent up from Friday’s closing price of $21.52. Reference: