Johnson Controls International Plc (NYSE:JCI) shares are trading lower on Wednesday.
The company reported second-quarter adjusted earnings per share of 78 cents, beating the street view of 75 cents.
Quarterly sales of $6.699 billion missed the street view of $6.72 billion.
Reported sales in the quarter under review were flat versus prior year and increased 1% organically.
The company recorded a pre-tax charge of $750 million related to a settlement with a nationwide class of public water systems concerning the use of Aqueous Film Forming Foam manufactured and sold by a company subsidiary.
Quarterly orders grew 12% organically year-over-year, with a building solutions backlog of $12.6 billion, up 10% organically year-over-year.
Building Solutions North America segment EBITA margin of 13.6% expanded 110 basis points versus the prior year, led by higher margin backlog conversion and continued growth in Services.
Outlook: Johnson Controls expects third-quarter adjusted EPS before special items of ~$1.05 to $1.10 versus the $1.11 estimate.
The company maintains full-year adjusted EPS before special items of ~$3.60-$3.75 versus the $3.59 estimate.
Regarding sales outlook, Johnson Controls projects organic revenue to be up by low single-digit year over year in the third quarter, while the company sees organic revenue growth up by mid-single-digit year-over-year for the full year.
Price Action: JCI shares are trading lower by 6.65% to $60.73 at last check Wednesday.
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