NEW YORK Soft global demand combined with restructuring and operations-related costs dragged down Johnson Controls Inc.s (JCIs) fiscal second-quarter earnings.
The Milwaukee-based company posted net income of $148 million for the three months ended March 31, down 60.9 percent from $379 million in the same period last year on sales that slipped to $10.43 billion, down 1.3 percent from a year earlier but consistent with forecasts.
"Despite a challenging global market, we anticipate stronger profitability in the second half of fiscal 2013 consistent with market expectations," JCI chairman and chief executive officer Stephen Roell said in a statement released with earnings. "Our (fiscal) second-half results will reflect restructuring benefits and improved operating performance."
JCIs Power Solutions segment was the only business unit to experience growth, posting quarterly earnings of $221 million, up 18.8 percent from $186 million a year earlier.
Other segments, including JCIs Automotive Experience and Building Efficiency units, continued to face significant headwinds from the European and Asian markets, the company said. The Automotive Experience segment, which focuses primarily on automotive seating, electronics and interiors, saw its earnings drop 20.9 percent to $185 million in the quarter from $234 million a year ago.
"We remain committed to improving profitability despite soft global demand in our markets," said Roell, who noted that continued restructuring initiatives were moving ahead as planned.