By Juan Pedro Tomás
Smart building solution company Johnson Controls recorded revenues of US$2 billion in its North America building solutions segment in fiscal Q1 2021, down 6 per cent compared to revenues of US$2.16 billion in the same period the previous year, according to the company’s earnings release.
The company highlighted that lower sales in the quarter were driven by a decline in project installations and, to a much lesser extent, service. Strong growth in Performance Solutions was more than offset by a decline in Fire & Security and HVAC & Controls, the company said.
“Orders in North America declined 7 per cent improving slightly on a sequential basis, but impacted by significant declines in our federal government business,” the company’s CFO Olivier Leonetti said during a conference call with investors.
In EMEA and Latin America, the company recorded revenues of US$906 million in fiscal Q1 2021, down 2 per cent compared to the same period the previous year.
“By geography, we saw continued challenges across our major regions with most geographies back under significant restrictions or full lockdown due to the spike in COVID cases in the second half of the quarter. Europe declined low single-digits while the Middle East saw significant pressure, down high teens against this quarter with continued weakness in HVAC business. Latin America was down low double-digits,” the executive said.
“APAC revenue went down 6 per cent with [installations] down 11 per cent and service up 1 per cent. Sales in China turn positive growing 2 per cent while other geographies throughout the APAC region have deteriorated modestly since last quarter due to renewed lockdowns and restrictions related to COVID-19 in areas like India, Southeast Asia and parts of the Pacific,” Leonetti added.
At a global level, the company recorded revenues of US$5.3 million in fiscal Q1, down 4 per cent year-on-year, mainly due to the impact of the COVID-19 pandemic.
“We launched seven new offerings this quarter, the most significant of which is OpenBlue Healthy Buildings, the industry’s most comprehensive suite of connected solutions. This particular launch leverages the strength of our core capabilities, which together with data-driven AI technologies enables our customers to transform how people interact with their buildings, create intelligence, safe dynamic environments, achieve their own green building goals and maximize return on investment with shorter paybacks,” the company’s chairman and CEO George Oliver said during the earnings conference call.
“We are ideally positioned with technologies and solutions that accelerate the transformation and reinvention of Healthy Buildings, which is directly aligned with the priorities of the incoming US administration,” Oliver said.https://inbuildingtech.com
