Global multi-industrial company Johnson Controls, based in Milwaukee, reported its 2015 first quarter financials on Thursday, showing double-digit business segment growth.
Net sales for the quarter totaled $10.7 billion, up 1 percent year-over-year, while income from business segments jumped 18 percent to $768 million.
"Profitability improved significantly in the quarter, as we benefitted from higher volumes and our continuing focus on execution improvements," said Alex Molinaroli, Johnson Controls chairman and chief executive officer. "The results in the quarter are better than the expectations we provided at our analyst day in December."
In the Building Efficiency business, Johnson Controls had sales of $3.5 billion, up 5 percent YOY. Its segment income of $201 million was a 38 percent increase YOY. The company noted that Building Efficiency results benefitted from incremental revenues and income associated with the company's acquisition of Air Distribution Technologies (ADT) in the third quarter of 2014.
In the Automotive Experience business, sales were $5.3 billion, down 3 percent YOY. Its segment income was $249 million, up 26 percent.
Power Solutions business sales increased 4 percent to $1.8 billion, while segment income also increased 4 percent to $318 million.
Also on Thursday, the company announced it has signed a definitive agreement with Hitachi, Ltd. and Hitachi Appliances to form a previously announced global joint venture that will bring customers viarable refrigerant flow technology, as well as room for air conditioners and absorption chillers. The company says it expects the joint venture, to have 2016 sales of $3 billion. Through the agreement, Johnson Controls will obtain a 60 percent ownership stake in Hitachi Appliances' global air conditioning business.
Finally, Milwaukee's BizTimes reported Wednesday that Johnson Controls is working on plans for a new 50-story headquarters building on Milwaukee's lakefront. The report says the 1.2-million square foot building would house 2,000 to 3,000 employees, and become the biggest building in Wisconsin.
"That’s what I’ve heard from people at (the Department of City Development) and the mayor’s office,” Bauman said to BizTimes. “They want to build the biggest building in the state.”
The report says the building would be located southwest of the intersection of East Clybourn Street and North Lincoln Memorial Drive.