Johnson Controls Stock Plunges 6% in 2023 Amid Global Sales Decline and Cyberattack Impact
Johnson Controls International faced a sharp drop in earnings and revenue in Q4 2023 due to weakening global sales and a significant cyberattack, raising concerns about its financial outlook in 2025.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading news teams and covering major global events.
Essential Highlights
- Johnson Controls International PLC missed Q4 2023 earnings and revenue targets, impacted by a global sales downturn and a cyberattack in September.
- The Building Solutions division saw a 7% sales drop in the Asia-Pacific region, mainly due to reduced installations in China.
- The cyberattack caused a delay in earnings report release and lowered earnings per share by 4 cents.
- The company’s stock declined 6%, closing at $53.19, marking an 18% decrease year-to-date.
Shares of Johnson Controls International PLC (JCI) tumbled significantly on Tuesday after reporting weaker-than-expected fiscal Q4 2023 results. The company, specializing in building technologies and software, was hit by declining global sales and the lingering effects of a cyberattack detected in late September.
JCI posted earnings per share (EPS) of $1.05 for the quarter, which included a 4-cent negative impact from the cyber incident. Revenue increased modestly by 2.7% to $6.91 billion, but both figures fell short of market expectations.
The Global Products segment experienced a 2% sales decline, driven by reduced demand in residential properties. Meanwhile, the Building Solutions unit faced a 7% sales decrease in the Asia-Pacific market, largely due to sluggish installation activities in China. Conversely, sales in North America and the combined Europe, Middle East, Africa, and Latin America regions rose by 8% and 7%, respectively.
Last month, Johnson Controls disclosed that the cyberattack discovered on September 23 caused disruptions to systems vital for financial reporting, resulting in a delayed Q4 earnings release as the company worked to resolve the issues.
Looking ahead, Johnson Controls projects its 2024 EPS to range between $3.65 and $3.80, below analyst forecasts of $3.96, reflecting ongoing challenges.
Following the earnings announcement, JCI’s stock dropped 6% to close at $53.19, continuing its downward trend with an 18% loss over the year.
Discover the latest news and current events in Company News as of 17-12-2023. The article titled " Johnson Controls Stock Plunges 6% in 2023 Amid Global Sales Decline and Cyberattack Impact " provides you with the most relevant and reliable information in the Company News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.
The information in " Johnson Controls Stock Plunges 6% in 2023 Amid Global Sales Decline and Cyberattack Impact " helps you make better-informed decisions within the Company News category. Our news articles are continuously updated and adhere to journalistic standards.