The company said the increase in consolidated net sales for the quarter ended December 31, 2023 reflected the net impact of acquisitions and divestitures of $41 million and foreign currency translation of $28 million, while organic sales declined $43 million. It said net sales excluding the impact of foreign currency translation and business acquisitions and divestitures decreased 1% from the prior year.

1. 01

   The company said the increase in consolidated net sales for the quarter ended December 31, 2023 reflected the net impact of acquisitions and divestitures of $41 million and foreign currency translation of $28 million, while organic sales declined $43 million. It said net sales excluding the impact of foreign currency translation and business acquisitions and divestitures decreased 1% from the prior year.

2. 02

   The company experienced a cybersecurity incident over the weekend of September 23, 2023. The company said the impact on net income for the quarter ended December 31, 2023, including lost and deferred revenues and expenses and net of insurance recoveries, was approximately $27 million. It said it does not expect the full-year impact in fiscal 2024 to be material to net income or cash flows from continuing operations.

3. 03

   The company said gross profit margin fell 180 basis points in the quarter, with price/cost effects partially offsetting the impact of lower volumes. SG&A declined $58 million, and the company cited the absence of prior-year nonrecurring costs, including a warehouse fire loss and one-time transaction and separation costs, as the main factors.

4. 04

   Johnson Controls said cash and cash equivalents were $1.8 billion as of December 31, 2023, and commercial paper outstanding was $1.4 billion (as of September 30, 2023: $0.2 billion). The company said approximately $3.0 billion remains available under its share repurchase authorization, and it did not repurchase shares in the quarter.

Key figures

Quarter ended December 31, 2023

Revenue

$6.1B

Net income

$374M

EPS

$0.55

Gross profit

$2.0B

Operating cash flow

−$246M

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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