Johnson Controls International plc (JCI) reported revenue that topped analysts’ expectations while earnings came in line with estimates for the fourth quarter of 2018. The stock gained by 0.8% during premarket hours on Thursday.
Total sales increased 3% to $8.4 billion. On an organic basis, sales grew 6%. Net income attributable to JCI dropped to $771 million or $0.83 per share compared to $875 million or $0.93 per share in the prior-year period. Adjusted EPS grew 7% year-over-year to $0.93.
Johnson Controls posted sales increases, both on a reported and organic basis, across its entire Building Solutions business. Organic sales in the three divisions – North America, EMEA/LA and Asia Pacific – benefited from growth in Fire & Security, HVAC & Controls, service, and project installations. Orders and backlog also saw increases across all three divisions.
Reported sales in the Global Products segment fell 1% while organic sales grew 9% year-over-year, led by high single digit growth in HVAC & Refrigeration Equipment, high teens growth in Building Management Systems and low double digit growth in Specialty Products.
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The Power Solutions business saw sales increases, both on a reported and organic basis, driven by price and technology mix. The company is in the final stages of the strategic review of the Power Solutions business and is making progress in the decision-making process.
For the full year of 2019, organic revenue is expected to grow in the mid-single digits. Adjusted EPS before special items is expected to be $2.90 to $3.05, including a $0.12 headwind from an increased tax rate and an $0.08 headwind related to foreign currency.