The document provides a quarterly update for Johnson Controls for the second quarter of FY 2009. Key points include:
- Sales of $6.3 billion, down 33% from the prior year, significantly impacted by lower automotive production volumes.
- Net loss of $97 million compared to net income of $289 million in the prior year.
- Segment income losses across all businesses due to lower volumes and reduced factory absorption.
- $230 million restructuring announced to improve costs, with benefits expected in the second half of 2009 and beyond.
- Actions taken to improve liquidity including a $850 million debt offering to strengthen the balance sheet.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
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1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
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2. Agenda
Introduction
Glen Ponczak – Director, Investor Relations
Overview and Economic Environment / Outlook
Steve Roell – Chairman and Chief Executive Officer
Business Results and Financial Review
Bruce McDonald – Executive Vice President and Chief Financial Officer
Q&A
FORWARD-LOOKING STATEMENT
Johnson Controls, Inc. (quot;the Companyquot;) has made forward-looking statements in this presentation pertaining to its financial results for fiscal 2009
and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact
are statements that are or could be deemed forward-looking statements and include terms such as quot;outlook,quot; quot;expectations,quot; quot;estimates,quot; or
quot;forecasts.quot; For those statements, the Company cautions that numerous important factors, such as automotive vehicle production levels, mix
and schedules, financial distress of key customers, energy prices, the strength of the U.S. or other economies, currency exchange rates,
cancellation of or changes to commercial contracts, liquidity, the ability to execute on restructuring actions according to anticipated timelines and
costs as well as other factors discussed in the Company's Form 8-k (filed March 9, 2009) could affect the Company's actual results and could
cause its actual consolidated results to differ materially from those expressed in any forward- looking statement made by, or on behalf of, the
Company.
2
3. 2009 second quarter*
Sales: $6.3 billion vs. $9.4 billion in 2008 Significant negatively
Top-line top-line
impacted by
impact
Segment income: loss of $113 million
Automotive volume
Net income: loss of $97 million ($2.0 billion)
Lead ($0.5 billion)
– ($0.16) per diluted share Currency ($0.7 billion)
vs. $0.48 in Q2 2008 Excluding these items,
sales were comparable
with last year
*Excluding Q2 items
$230 million restructuring announced March 2009
$81 million non-recurring tax benefit
$7 million tax rate benefit related to Q1
$6 million restructuring charges at equity affiliates
3
4. 2009 second quarter
Economic environment and outlook
March's SAAR of 9.9m was 34% below
Automotive markets
last year’s rate of 15.0m
21
Prolonged production shut-downs in
North America and Europe, particularly in 20
January 19
12 Month
North American production (FY 2009) 18 Moving
forecast of 8.8 million vehicles Average
(in millions)
17
– Compared with 9.3 million forecast in 16
December 2009
U.S. SAAR
15
– “Wealth effect” negatively impacting
14
new car sales
13
Declines in home equity and
12
401k values, rising
unemployment 11
Europe production forecast of 14.3 million 10
vehicles 9
– Compared with16.2 million forecast 8
Mar-05
Jun-05
Mar-06
Jun-06
Mar-07
Jun-07
Mar-08
Jun-08
Mar-09
Dec-05
Dec-06
Dec-07
Dec-08
Sep-05
Sep-06
Sep-07
Sep-08
in December 2008
4
5. 2009 second quarter
Economic environment and outlook
Building markets
Our primary vertical market -- institutional buildings
(government, healthcare, education) -- remains the most
resilient new construction sector
– Weakness in office, retail, lodging where JCI has low
presence; expected to continue through 2010
– Economic environment resulting in atypical customer
behaviors
Service / maintenance / retrofit deferrals
– Delays of some government energy efficiency
projects due to potential for stimulus funding
– New construction slow-downs and deferrals in Dubai;
other Middle Eastern markets stable
U.S. housing starts and existing-home sales continue to
decline
5
6. Some encouraging signs
Automotive markets
Government support
European incentive programs having a positive
impact on new vehicle sales
– Auto scrappage programs driving increased
“A” and “B” segment car purchases
Managed government-backed process for OE
long-term viability
U.S. Treasury program for domestic suppliers
Volume
China volumes stabilizing / improving
Improvements in U.S. consumer credit availability
Lower industry inventory levels in North America
and Europe; future production likely to be more
stable
6
7. Some encouraging signs
Automotive Experience
Other news
Sequential improvement
Multiple OE production shut- Toyota “Global Contribution Award”
downs in January and February
– Three companies selected in 2009
Restructuring benefits
increasingly accretive – JCI is only supplier of vehicle interior
Other cost-reduction initiatives products, and the only U.S. company, to
gain top recognition
Automotive Experience
New business awards in Asia
Segment Income
– GM, Kia, Nissan
Jan Feb Mar
$0
Intend to participate in U.S. Treasury
supplier credit insurance program
7
8. Some encouraging signs
Power Solutions
Auto battery destocking in retail / wholesale
channels stabilizing
U.S. Federal and State funding for domestic hybrid
battery capacity
Building Efficiency
Stimulus funding for investing in energy efficiency,
infrastructure
– JCI pipeline of ARRA projects: $535 million
Architectural Billing Index (U.S.) stabilizing
– Potential cycle bottoming in 2010
Continued strong growth in pipeline for Global
Workplace Solutions
– Over $1 billion in identified projects
Initial signs of residential market stabilization
– U.S. tax credits for first-time buyers
8
9. Economic Stimulus (ARRA) Package
Target addressable
Federal Opportunities
market opportunity $12B
Well positioned as a preferred or pre-
qualified supplier to many federal entities
Strong presence on over 50% of the top 85 Grid /
Renewables
military installations world-wide
$2 B
– Installed systems at the White House, Education
Modernization
U.S. Capitol and Pentagon Federal $5 B
2008 market share of Department of Buildings
$3 B
Energy’s performance contracts: 70%
State
State & Local Opportunities
and Local
Local branch presence and expertise to $2 B
help state and local governments identify
and qualify high value projects consistent
with ARRA objectives
9
10. 2009 second quarter actions
Improving our cost structure and liquidity
$230 million restructuring September 2008
Restructuring Update
– 80% focused on Automotive Experience;
Actions proceeding ahead of
remainder is primarily Power Solutions
schedule; 70% complete
– Approximately $185 million in cash
Increasingly accretive to
– 10 plant consolidations / closings
earnings in second half of year
– Slightly accretive in 2009; incremental $0.15
Incremental $0.20 - $0.25 per
per diluted share benefit in 2010
Liquidity enhancement diluted share benefit in 2010
– Successful $850 million convertible debt /
mandatory equity units offering
– Reduces reliance on commercial paper market
– Stabilized credit metrics
– Financial flexibility to withstand market
disruptions and take advantage of opportunities
10
11. 2009 second quarter
Building Efficiency
2009 2008 Commercial backlog
(at March 31, 2009)
Net sales $3.0 B $3.3 B - 10%
$4.5 B +1% (+6% ex FX)
Adjusted for currency, sales down 2%
N.A. systems up slightly
Solutions growth of 16%
– Temporary contract delays due to potential of stimulus funding
Europe, ROW comparable with last year, excluding currency
Technical services down high single digits
– Continued deferrals of “discretionary” service/retrofit
Depressed unitary (N.A. residential) demand
– Down 24% y/y over low 2008 revenues
– New home construction starts down more than 80% since peak;
lowest level in 50 years
11
12. 2009 second quarter
Building Efficiency
2009 2008
Segment income $90 M $177 M - 49%
All non-residential businesses solidly profitable
Good progress in European restructuring (segment income up 7%,
excluding currency)
40% of overall decline attributable to residential HVAC (unitary products)
business
– Lower volume
– Write-downs associated with profitability improvement program
Impact of lower volumes / factory absorption
Currency devaluation in Latin America
12
13. 2009 second quarter
Power Solutions
2009 2008
Q2 lead price / metric ton
Net sales $905 M $1.5 B - 38%
2009 2008 (qrtly ave.)
Unit volumes down 9%
$1,157 $2,871 - 60%
– Aftermarket unit volume comparable with last year
– OE unit volume down 38% in Americas; Restructuring benefits
39% in Europe start in Q3
Segment income $66 M $121 M - 46%
Lower unit volumes
Increased investment in Asia lead-acid expansion
Costs associated with footprint consolidation
Hybrid battery investments
Lead battery grids
13
14. 2009 second quarter
Power Solutions
Lead-acid batteries 6 million units (annualized) of
new lead-acid business
Genuine Parts/ NAPA (western region)
awarded in the past 12
– New customer for Johnson Controls months
– Initial shipments begin in Q3 2009
Commenced battery shipments to O’Reilly’s / CSK
Named Wal-Mart “Vendor of the Year” in the
automotive category
Hybrid batteries
U.S. Lithium-Ion hybrid battery plant
– Existing facility in Holland, Michigan
– $220 million investment
– $149 million in incentives from State of Michigan
14
15. 2009 second quarter
Automotive Experience
2009 2008
Net sales $2.4 B $4.7 B - 47%
Sales down 40% excluding impact of currency
– Declines across all geographies, customers and product segments
North America: down 48% (production down 51%)
Europe: down 48% (production down 41%)
– Down 35% excluding impact of currency
Segment income ($275 M) $155 M
Lower volume and loss of contribution margin
China profitability comparable to prior year
Accelerating restructuring benefits; sequential
monthly improvements
15
16. 2009 second quarter
Financial highlights
2009
2009
2008 %change
(in millions) (excl. items)
(reported)
$6,315
Sales $6,315 $9,406 - 33%
Gross profit 682 1,310 - 48%
682
10.8% 13.9%
10.8%
% of sales
SG&A expenses 803 888 - 10%
803
Equity income 8 31 - 74%
2
Segment income ($113) $453
($119)
FX – Euro to U.S. Dollar average exchange rate at $1.29 in Q2 2009 vs. $1.54 in 2008
Sales – Excluding FX, sales down 26%
Gross Profit – Adversely impacted by factory absorption, restructuring activities
SG&A – Reductions in all three businesses, maintaining investments in key growth initiatives
Equity Income – Lower automotive equity income in NA and Europe; China comparable
16
17. 2009 second quarter
Financial highlights
(Reported) (Excl. items)
2009 2009 2008
(in millions except per share data)
Segment income ($119) ($113) $453
Restructuring costs (230)
Net financing charges (46) (46) (66)
Income before taxes/minority interests (395) (159) 387
Income tax (provision) / benefit 183 50 (81)
Minority interests, (net earnings) / loss 19 12 (17)
Net income / (loss) ($193) ($97) $289
Diluted earnings / (loss) per share ($0.33) ($0.16) $0.48
Net financing charges – Lower short-term rates, impact of FX
Income tax provision – Underlying 2009 tax rate revised to 31%
17
18. 2009 second quarter
Tax rate change
Q2 tax benefit at 31% $(50)
Tax on restructuring ($230M at 19%) (45)
Adjustment to Q1 effective tax rate (31% vs. 24%) (7)
Non-recurring tax benefit (81)
Q2 tax benefit reported ($183)
2009 effective tax rate increases to 31%
– Geographic shift in income
– Losses in jurisdiction with valuation allowances
Second half non-recurring tax benefits will approximate $150 million
2010 effective tax rate outlook approximately 25%
18
19. 2009 second quarter
Balance sheet
Net debt to capitalization ratio Debt offering
approximately 36%
Objectives achieved
Improvement in working capital by all three
Maximize liquidity
businesses
– Anticipate working capital improvements will – Liquidity cushion
offset cash costs of restructuring initiatives of $2.2 billion
Raise sufficient funds to
Sequential improvement in cash flow from
operating and investing activities avoid drawing bank
revolver
– Q2 2009 outflow of $102 million
Strengthen balance sheet
– Q1 2009 outflow of $674 million
Stabilize credit metrics
Lower second half capital spending
BBB / Baa2 ratings (stable)
– 2009 cap ex: $600 million
A-2 / P-2 ratings (stable)
March 2009 debt offering
Net proceeds of $828 million
Common stock dilution: 13%
19
20. 2009 guidance
Uncertainties remain in our industries making it Return to profitability in Q3
difficult to provide meaningful guidance
Significant improvements in
Break-even run-rate in Automotive Experience Automotive Experience
by year-end performance
Stimulus-related projects start to be in backlog – Expected segment income
loss of less than $50m
by end of 2009
Building Efficiency
Accelerating benefit of restructuring initiatives
seasonality
Continued investments in areas that support our
Increasing benefit from
growth strategies
restructuring initiatives and
Expect strong cash flow generation
lower commodity costs
in Q3 and Q4
20