Milwaukee, Wisconsin — Johnson Controls announced sales of $9.5 bn in the third quarter of 2016 down $100m compared to the same 2015 quarter. Net income from continuing operations were $383 m in the third quarter of its 2016 financial year, the firm said.
Johnson Controls Q3 2016 hit by Adient spin-off costs
The 2016 third quarter was hit by $435 m (after tax) in costs as a result of the separation of its automotive seating business in to Adient. "The company's Automotive Experience division generated another quarter of exceptional profitability," said Alex Molinaroli, Johnson Controls ceo.
Automotive Experience division revenues in were $4.4 bn in the quarter, down 19% on the 2015 quarter. This was due to the deconsolidation of an interiors joint venture and impact of foreign exchange. Ignoring these factors, revenues were down 1%, "with growth in Asia and Europe, offset by expiring programs in North America," the firm said.
It added that "in China, revenues, which are generated primarily by non-consolidated joint ventures, increased 49% to $2.9bn." This equates to a rise of 1% excluding the deconsolidation of interiors and exchange effects, compared to last year, JCI said.
The firm confirmed that the spin-off of its automotive seating business as Adient is on track for completion by the end of October 2016. Adient will incorporate in Ireland and has booked $4.3bn of business between January and June 2016, compared with $3.6bn for the whole of 2015, JCI said.