MILWAUKEE, Oct. 30, 2014 /PRNewswire/ -- For the fiscal 2014 fourth quarter, Johnson Controls (NYSE: JCI), a global multi-industrial company, reported net income from continuing operations of $311 million, or $0.46 per share, on $11.0 billion in revenues. Excluding restructuring and non-recurring items in the 2014 and 2013 fiscal fourth quarters, highlights (non-GAAP) include:


    --  Net revenues of $11.0 billion vs. $10.7 billion in Q4 2013, up three
        percent
    --  Record income from business segments of $983 million compared with $889
        million a year ago, up 11 percent
    --  Record net income from continuing operations of $700 million versus $629
        million in Q4 2013, up 11 percent
    --  Diluted earnings per share from continuing operations of $1.04 versus
        $0.91 in the same quarter last year, up 14 percent

Non-recurring items that impacted reported Q4 2014 and Q4 2013 income include:

2014 fourth quarter (net charge of $0.58 per share)


    --  Non-cash mark-to-market and pension settlement losses of $290 million
        ($218 million after-tax)
    --  Transaction and integration costs of $23 million ($18 million after-tax)
    --  Restructuring and non-cash impairment  charges of $162 million ($135
        million after-tax) primarily related to the Building Efficiency
        reorganization
    --  Non-recurring net tax expense of $18 million

2013 fourth quarter (net charge of $0.83 per share):


    --  A $22 million net loss ($22 million after-tax) on the sale of a business
    --  A $730 million ($666 million after-tax) restructuring and non-cash
        impairment charge
    --  A non-cash mark-to-market and pension settlement gain of $474 million
        ($278 million after-tax)
    --  Tax charges of $165 million primarily related to valuation allowance
        provisions

"We ended fiscal 2014 with solid contributions from all of our primary businesses, continuing the strong performance we have seen throughout the year," said Alex Molinaroli, Johnson Controls chairman and chief executive officer. "While the macro-economic environment continues to be challenging in some key markets, each of our businesses generated top line growth in the fourth quarter. Importantly, Building Efficiency orders were higher for the first time in a year. During the quarter, we announced a number of organizational and management changes that we believe will drive further improvements in shareholder value in 2015 and beyond."

In the fourth quarter, the company announced it was reorganizing its Building Efficiency business, with the North America branch business to operate separately from the global products business to better align with the company's long-term strategies and accelerate profitable global growth. Bill Jackson, who led the successful effort to return the Automotive Interiors business to profitability in 2014, was named president of Building Efficiency.

R. Bruce McDonald was named vice chairman, a new role designed to drive operational and financial performance within the businesses while also directing specific enterprise functions and strategic initiatives. Brian J. Stief was appointed executive vice president and chief financial officer. These appointments increase executive management bandwidth and are expected to help the company deliver on its short- and long-term commitments.

Johnson Controls also announced its intention to divest the Global Workplace Solutions (GWS) business, reflecting the company's previously stated intention to invest in businesses that are core to its long-term growth strategy and multi-industrial portfolio.

Business segments, excluding restructuring and non-recurring items (non-GAAP)

Building Efficiency sales in the fiscal 2014 fourth quarter were $3.9 billion, 1 percent higher than the same quarter last year, with growth in Asia and the revenue associated with the Air Distribution Technologies (ADT) acquisition partially offset by lower revenues in North America. GWS sales were slightly lower.

Orders in the quarter, including the incremental contribution of the ADT acquisition and excluding foreign exchange, were 11 percent higher year-over-year. Excluding ADT and the impact of foreign exchange, orders increased 2 percent, marking the first order growth in a year. The backlog of projects at the end of the quarter, adjusted for divestitures and foreign exchange, increased 1 percent, to $4.8 billion.

Building Efficiency segment income was $393 million, up 11 percent from $355 million in the fiscal 2013 fourth quarter, primarily the result of the incremental contribution by ADT and GWS segment income, which more than doubled compared with the 2013 fourth quarter as its business improvement program continued to gain traction.

Automotive Experience sales in the quarter grew 3 percent to $5.3 billion versus $5.1 billion last year on industry production growth of 8 percent in North America and a 1 percent decline in Europe. Revenues in China, which are primarily generated through non-consolidated joint ventures, increased 17 percent to $1.8 billion, while industry production increased 8 percent versus last year.

Automotive Experience segment income was $261 million, 27 percent higher than the same quarter last year. Seating segment income increased by 8 percent to $218 million while Interiors reported a profit of $43 million versus $3 million last year due to improved operational efficiencies and the benefits of earlier restructuring actions.

Power Solutions sales in the fourth quarter of 2014 increased 5 percent to $1.8 billion versus $1.7 billion in the same period last year. Unit shipments rose 4 percent, with increases in the global original equipment (OE) and replacement markets. Higher unit shipments in the Americas and Asia were partially offset by slightly lower aftermarket demand in Europe. The company said its production of AGM lead acid batteries for fuel-saving Start-Stop vehicles rose 23 percent compared with the fourth quarter of last year.

Power Solutions segment income was level with the fourth quarter of fiscal 2013, at $329 million. Segment margins for the 2014 fourth quarter were 18.4 percent. Segment margins for the 2014 fiscal year increased 60 basis points, to 16.1 percent.

Full year 2014 results

Johnson Controls fiscal 2014 revenues were $42.8 billion, an increase of 3 percent from $41.4 billion in 2013. Income from business segments totaled $3.1 billion, up 20 percent from $2.6 billion last year. Segment income margins for the year improved by 90 basis points.

Several actions intended to improve long-term shareholder value were undertaken in fiscal 2014, including:


    --  Announced $3.65 billion share repurchase program; $1.2 billion completed
        in Q1 2014
    --  Increased quarterly dividend by 16 percent
    --  Implementing the Johnson Controls Operating System to leverage scale,
        technology and expertise across the enterprise
    --  Business portfolio activities including:
        --  Acquisition of ADT, increasing Building Efficiency product breadth
            and distribution
        --  Divestiture of the Automotive Electronics business
        --  Memorandum of Understanding to create a joint venture with Hitachi
            to expand Building Efficiency product offerings
        --  Announced joint venture plans for the Automotive Interiors business
        --  Reorganization of the Building Efficiency business
        --  Decision to divest Global Workplace Solutions

"We began 2014 with a focus on execution and with an action plan to change our portfolio and our organization. Our earnings performance throughout the year proves our success in driving operational excellence throughout the company, and our progress around portfolio and the organizational changes in just one year exceeded our expectations," said Molinaroli. "We believe initiatives to improve the profitability of our businesses continue to gain momentum. Our 2014 results provide a foundation that we believe will position us to deliver record sales and earnings in 2015."

Fiscal 2015 outlook
For the first quarter of 2015, the company expects earnings of $0.74 - $0.77 per diluted share. Johnson Controls will provide full fiscal year 2015 guidance at its annual New York analyst day on Dec. 2, 2014.

Molinaroli added, "We have a good start to fiscal 2015 in all of our businesses and have begun to see recovery in some of our late cycle markets. Through our capital allocation strategies, we're focusing Johnson Controls on new growth markets with higher returns, and our large and growing China presence in all our businesses continues to be a differentiator. Executing on our strategies and delivering on our commitments remains our highest priority. I would like to thank all Johnson Controls employees across the globe for embracing the continuing changes to our company as we work together to achieve higher levels of success."

FORWARD-LOOKING STATEMENTS
Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" or terms of similar meaning are also generally intended to identify forward-looking statements. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls' control, that could cause Johnson Controls' actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include required regulatory approvals that are material conditions for proposed transactions to close, strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, energy and commodity prices, availability of raw materials and component products, currency exchange rates, and cancellation of or changes to commercial contracts, as well as other factors discussed in Item 1A of Part I of Johnson Controls' most recent Annual Report on Form 10-K for the year ended September 30, 2013. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are only made as of the date of this document, and Johnson Controls assumes no obligation, and disclaims any obligation, to update forward-looking statements to reflect events or circumstances occurring after the date of this document.

ABOUT JOHNSON CONTROLS
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2014, Corporate Responsibility Magazine recognized Johnson Controls as the #12 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com or follow us on Twitter @johnsoncontrols.



    CONTACT:                       Glen L. Ponczak (Investors)

                                   (414) 524-2375


                                   Fraser Engerman (Media)

                                   (414) 524-2733


                        JOHNSON CONTROLS, INC.


             CONDENSED CONSOLIDATED STATEMENTS OF INCOME

           (in millions, except per share data; unaudited)



                                                   Three Months Ended September
                                                             30,
                                                  -----------------------------

                                                        2014                2013 (Revised)
                                                        ----                 -------------


    Net sales                                        $10,979                         $10,700

    Cost of sales                                      9,137                           8,675
                                                       -----                           -----


                        Gross profit                     1,842                           2,025


    Selling, general
     and administrative
     expenses                                        (1,294)                          (756)

    Loss on business
     divestiture                                -                   (22)

    Restructuring and
     impairment costs                                  (162)                          (730)

    Net financing
     charges                                            (66)                           (54)

    Equity income                                        122                              94
                                                         ---                             ---


    Income from
     continuing
     operations before
     income taxes                                        442                             557


    Income tax
     provision                                            94                             469
                                                         ---                             ---


    Net income from
     continuing
     operations                                          348                              88


    Income (loss) from
     discontinued
     operations, net of
     tax                                                 (2)                             51
                                                         ---                             ---


    Net income                                           346                             139


                                                          37                              34
     Less: Income from continuing
      operations attributable to
      noncontrolling interests
                                                                                        ---


    Net income
     attributable to
     JCI                                     $309                    $105
                                             ====                    ====


    Income from
     continuing
     operations                              $311                     $54

    Income (loss) from
     discontinued
     operations                                          (2)                             51
                                                         ---                             ---


    Net income
     attributable to
     JCI                                     $309                    $105
                                             ====                    ====


    Diluted earnings
     per share from
     continuing
     operations                             $0.46                   $0.08

    Diluted earnings
     per share from
     discontinued
     operations                                         0.00                            0.07
                                                        ----                            ----

    Diluted earnings
     per share                              $0.46                   $0.15
                                            =====                   =====


    Diluted weighted
     average shares                                    673.0                           690.7
                                                       =====                           =====

    Shares outstanding
     at period end                                     665.5                           684.5
                                                       =====                           =====



                        JOHNSON CONTROLS, INC.


             CONDENSED CONSOLIDATED STATEMENTS OF INCOME

           (in millions, except per share data; unaudited)



                                                   Twelve Months Ended September
                                                             30,
                                                  ------------------------------

                                                        2014                2013 (Revised)
                                                        ----                 -------------


    Net sales                                        $42,828                         $41,410

    Cost of sales                                     36,201                          34,945
                                                      ------                          ------


                        Gross profit                     6,627                           6,465


    Selling, general
     and administrative
     expenses                                        (4,308)                        (3,780)

    Gain (loss) on
     business
     divestitures                                      (111)                              7

    Restructuring and
     impairment costs                                  (324)                          (957)

    Net financing
     charges                                           (244)                          (247)

    Equity income                                        395                             399
                                                         ---                             ---


    Income from
     continuing
     operations before
     income taxes                                      2,035                           1,887


    Income tax
     provision                                           482                             696
                                                         ---                             ---


    Net income from
     continuing
     operations                                        1,553                           1,191


    Income (loss) from
     discontinued
     operations, net of
     tax                                               (218)                            101
                                                        ----                             ---


    Net income                                         1,335                           1,292


                                                         120                             114
     Less: Income from continuing
      operations attributable to
      noncontrolling interests
                                                                                        ---


    Net income
     attributable to
     JCI                                   $1,215                  $1,178
                                           ======                  ======


    Income from
     continuing
     operations                            $1,433                  $1,077

    Income (loss) from
     discontinued
     operations                                        (218)                            101
                                                        ----                             ---


    Net income
     attributable to
     JCI                                   $1,215                  $1,178
                                           ======                  ======


    Diluted earnings
     per share from
     continuing
     operations                             $2.12                   $1.56

    Diluted earnings
     (loss) per share
     from discontinued
     operations                                       (0.32)                           0.15
                                                       -----                            ----

    Diluted earnings
     per share                              $1.80                   $1.71
                                            =====                   =====


    Diluted weighted
     average shares                                    674.8                           689.2
                                                       =====                           =====

    Shares outstanding
     at period end                                     665.5                           684.5
                                                       =====                           =====



                                JOHNSON CONTROLS, INC.


               CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                               (in millions; unaudited)



                                        September 30,                   September 30,

                                                                 2014                    2013
                                                                 ----                    ----

    ASSETS

    Cash and cash equivalents                        $409                       $1,055

    Accounts receivable - net                                   5,871                   7,206

    Inventories                                                 2,477                   2,325

    Assets held for sale                                        2,157                     804

    Other current assets                                        2,072                   2,308
                                                                -----                   -----

                                   Current assets                12,986                  13,698


    Property, plant and equipment -
     net                                                        6,314                   6,585

    Goodwill                                                    7,127                   6,589

    Other intangible assets - net                               1,639                     999

    Investments in partially-owned
     affiliates                                                 1,018                   1,024

    Noncurrent assets held for sale                               630                       -

    Other noncurrent assets                                     2,712                   2,623
                                                                -----                   -----

                                   Total assets                 $32,426                 $31,518
                                   ============


    LIABILITIES AND EQUITY

    Short-term debt and current
     portion of long-term debt                       $323                         $938

    Accounts payable and accrued
     expenses                                                   6,394                   7,533

    Liabilities held for sale                                   1,801                     402

    Other current liabilities                                   3,130                   3,244
                                                                -----                   -----

                                   Current liabilities           11,648                  12,117


    Long-term debt                                              6,357                   4,560

    Other noncurrent liabilities                                2,665                   2,110

    Redeemable noncontrolling
     interests                                                    194                     157

    Shareholders' equity
     attributable to JCI                                       11,311                  12,314

    Noncontrolling interests                                      251                     260
                                                                  ---                     ---

                                    Total liabilities and
                                    equity                      $32,426                 $31,518
                                    =====================



                                                               JOHNSON CONTROLS, INC.


                                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                              (in millions; unaudited)



                                                                                Three Months Ended September
                                                                                            30,
                                                                              -----------------------------

                                                                                              2014                  2013
                                                                                              ----                  ----

    Operating Activities

    Net income attributable to JCI                                                        $309                  $105

    Income from continuing operations
     attributable to noncontrolling interests                                               37                    34
                                                                                           ---                   ---


    Net income                                                                             346                   139


    Adjustments to reconcile net income to cash provided by
     operating activities:

                        Depreciation and
                        amortization                                  224                               256

                        Pension and
                        postretirement
                        benefit expense
                        (income)                                      296                             (470)

                        Pension and
                        postretirement
                        contributions                               (102)                             (36)

                       Equity in
                        earnings of
                        partially-
                        owned
                        affiliates, net
                        of dividends
                        received                                     (57)                             (37)

                        Deferred income
                        taxes                                       (269)                              282

                        Non-cash
                        restructuring
                        and impairment
                        charges                                        93                               537

                        Gain on business
                        divestitures                                    -                            (454)

                        Fair value
                        adjustment of
                        equity
                        investment                                   (19)                             (24)

                       Other - net                                     23                                 6

                       Changes in
                        assets and
                        liabilities,
                        excluding
                        acquisitions
                        and
                        divestitures:

                                 Receivables                          (221)                            (188)

                                 Inventories                              2                                54

                                  Restructuring
                                  reserves                               17                               167

                                  Accounts
                                  payable and
                                  accrued
                                  liabilities                           394                               374

                                  Change in
                                  other assets
                                  and
                                  liabilities                           505                               531
                                                                        ---                               ---

                                                   Cash provided by
                                                   operating activities                      1,232                 1,137
                                                                                             -----                 -----


    Investing Activities

    Capital expenditures                                                                 (323)                (448)

    Sale of property, plant and equipment                                                   18                    63

    Acquisition of businesses, net of cash
     acquired                                                                             (16)                 (10)

    Business divestitures                                                                  266                   761

    Other - net                                                                             19                    17

                                                   Cash provided (used) by
                                                   investing activities                       (36)                  383
                                                                                               ---                   ---


    Financing Activities

    Decrease in short and long-term debt - net                                           (744)                (541)

    Stock repurchases                                                                     (50)                (125)

    Payment of cash dividends                                                            (146)                (130)

    Proceeds from the exercise of stock
     options                                                                                13                    81

    Other - net                                                                           (25)                 (67)
                                                                                           ---                   ---

                                                   Cash used by financing
                                                   activities                                (952)                (782)
                                                                                              ----                  ----

    Effect of exchange rate changes on cash
     and cash equivalents                                                                  (5)                 (70)

    Cash held for sale                                                                      10                   (4)
                                                                                           ---                   ---

    Increase in cash and cash equivalents                                                 $249                  $664
                                                                                          ====                  ====


                                                                    JOHNSON CONTROLS, INC.


                                                       CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                   (in millions; unaudited)



                                                                               Twelve Months Ended September
                                                                                             30,
                                                                              ------------------------------

                                                                                                        2014                  2013
                                                                                                        ----                  ----

    Operating Activities

    Net income attributable to JCI                                                                $1,215                $1,178

    Income from continuing operations
     attributable to noncontrolling interests                                                        120                   114
                                                                                                     ---                   ---


    Net income                                                                                     1,335                 1,292


    Adjustments to reconcile net income to cash provided by operating
     activities:

                        Depreciation and
                        amortization                                  955                                       952

                        Pension and
                        postretirement
                        benefit expense
                        (income)                                      321                                     (475)

                        Pension and
                        postretirement
                        contributions                               (161)                                     (97)

                       Equity in
                        earnings of
                        partially-
                        owned
                        affiliates, net
                        of dividends
                        received                                    (153)                                     (86)

                        Deferred income
                        taxes                                       (329)                                      273

                        Non-cash
                        restructuring
                        and impairment
                        charges                                       181                                       586

                        Loss (gain) on
                        business
                        divestitures                                  111                                     (483)

                        Fair value
                        adjustment of
                        equity
                        investment                                   (38)                                    (106)

                       Other - net                                     80                                        43

                       Changes in
                        assets and
                        liabilities,
                        excluding
                        acquisitions
                        and
                        divestitures:

                                 Receivables                           (18)                                    (182)

                                 Inventories                          (311)                                     (97)

                                  Restructuring
                                  reserves                             (31)                                      234

                                  Accounts
                                  payable and
                                  accrued
                                  liabilities                           213                                       691

                                  Change in
                                  other assets
                                  and
                                  liabilities                           240                                       141
                                                                        ---                                       ---

                                                   Cash provided by
                                                   operating activities                                2,395                 2,686
                                                                                                       -----                 -----


    Investing Activities

    Capital expenditures                                                                         (1,199)              (1,377)

    Sale of property, plant and equipment                                                             79                   116

    Acquisition of businesses, net of cash
     acquired                                                                                    (1,733)                (123)

    Business divestitures                                                                            225                   761

    Other - net                                                                                       35                    43

                                                   Cash used by investing
                                                   activities                                        (2,593)                (580)
                                                                                                      ------                  ----


    Financing Activities

    Increase (decrease) in short and long-
     term debt - net                                                                               1,241                 (573)

    Stock repurchases                                                                            (1,249)                (350)

    Payment of cash dividends                                                                      (568)                (513)

    Proceeds from the exercise of stock
     options                                                                                         186                   254

    Other - net                                                                                     (22)                 (32)
                                                                                                     ---                   ---

                                                   Cash used by financing
                                                   activities                                          (412)              (1,214)
                                                                                                        ----                ------

    Effect of exchange rate changes on cash
     and cash equivalents                                                                           (20)                 (98)

    Cash held for sale                                                                              (16)                  (4)
                                                                                                     ---                   ---

    Increase (decrease) in cash and cash
     equivalents                                                                                  $(646)                 $790
                                                                                                   =====                  ====





                FOOTNOTES


    1. Business Unit Summary


    In the second quarter of fiscal
     2014, the Company began
     reporting its Automotive
     Experience Electronics business
     as a discontinued operation,
     which required retrospective
     application to previously
     reported financial information.
     As a result, the segment income
     amounts shown below are for
     continuing operations and
     exclude the Electronics business
     segment income of $507 million
     for the fiscal 2013 fourth
     quarter and $607 million for
     fiscal 2013 year-to-date.  The
     fiscal 2013 Electronics business
     segment income included a $476
     million gain on sale of the
     HomeLink business.


                                  Three Months Ended                                    Twelve Months Ended

    (in millions)                    September 30,                                         September 30,
                                     -------------                                         -------------

                                                2014 2013 (Revised)              %                          2014      2013 (Revised)               %
                                                ---- -------------              ---                         ----      -------------               ---

                                      (unaudited)                                           (unaudited)

    Net Sales
    ---------

    Building Efficiency                       $3,931                 $3,891          1%                   $14,164                     $14,591         -3%

    Automotive Experience                      5,258                  5,112          3%                    22,032                      20,461          8%

    Power Solutions                            1,790                  1,697          5%                     6,632                       6,358          4%

                   Net Sales                 $10,979                $10,700                               $42,828                     $41,410
                                             =======                =======                               =======                     =======


    Segment Income(1)
    ----------------

    Building Efficiency                         $371                   $361          3%                      $930                        $984         -5%

    Automotive Experience                        248                    230          8%                       886                         698         27%

    Power Solutions                              325                    345         -6%                     1,061                       1,004          6%

                   Segment Income                944                    936 (2)                             2,877 (3)                   2,686 (3)
                                                 ---                    ---                                 -----                       -----


    Restructuring and
     impairment costs                          (162)                 (730)                                (324)                      (957)

    Net financing charges                       (66)                  (54)                                (244)                      (247)

                                               (274)                   405                                 (274)                        405

    Mark-to-market
     benefit (charge) for
     pension and
     postretirement plans

    Income from
     continuing
     operations before
     income taxes                               $442                   $557                                $2,035                      $1,887
                                                ====                   ====                                ======                      ======


    Net Sales
    ---------

    Products and systems                      $8,912                 $8,522          5%                   $34,978                     $33,092          6%

    Services                                   2,067                  2,178         -5%                     7,850                       8,318         -6%

                                             $10,979                $10,700                               $42,828                     $41,410
                                             =======                =======                               =======                     =======


    Cost of Sales
    -------------

    Products and systems                      $7,504                 $6,967          8%                   $29,910                     $28,189          6%

    Services                                   1,633                  1,708         -4%                     6,291                       6,756         -7%

                                              $9,137                 $8,675                               $36,201                     $34,945
                                              ======                 ======                               =======                     =======


     (1) Management evaluates the performance of the business units based
      primarily on segment income, which represents income from
      continuing operations before income taxes and noncontrolling
      interests, excluding net financing charges, significant
      restructuring and impairment costs, and net mark-to-market
      adjustments on pension and postretirement plans.


    Building Efficiency- Provides facility systems and services
     including comfort, energy and security management for the non-
     residential buildings market and provides heating, ventilating, and
     air conditioning products and services for the residential and non-
     residential building markets.

    Automotive Experience - Designs and manufactures interior systems
     and products for passenger cars and light trucks, including vans,
     pick-up trucks and sport/crossover utility vehicles.

    Power Solutions - Services both automotive original equipment
     manufacturers and the battery aftermarket by providing advanced
     battery technology, coupled with systems engineering, marketing and
     service expertise.


    (2)  These fourth quarter reported segment income numbers include
     non-recurring/unusual items and transaction/integration costs.
     The pre-tax impacts are reported as follows:


                                                             Building Efficiency                                            Automotive Experience                                               Power Solutions                              Consolidated JCI
                                                            -------------------                                             ---------------------                                               ---------------                             ----------------

                                                                            2014              2013 (Revised)                           2014                        2013 (Revised)                           2014   2013 (Revised)                            2014    2013 (Revised)
                                                                            ----               -------------                           ----                         -------------                           ----   -------------                             ----     -------------

    Segment income, as reported                                             $371                                  $361                  $248                                         $230                     $325                     $345                     $944                     $936


    Non-recurring/unusual items:

      Transaction/integration costs                                           15                                     -                    8                                            -                       -                       -                      23                        -

      Loss on business divestiture                                             -                                   22                     -                                           -                       -                       -                       -                      22

      Pension settlement (gain) loss                                           7                                  (28)                    5                                         (25)                       4                     (16)                      16                     (69)
                                                                             ---                                   ---                   ---                                          ---                      ---                      ---                      ---                      ---


    Segment income, excluding non-
     recurring/unusual items                                                $393                                  $355                  $261                                         $205                     $329                     $329                     $983                     $889
                                                                            ====                                  ====                  ====                                         ====                     ====                     ====                     ====                     ====


    (3)  These full year reported segment income numbers include non-recurring/unusual items and transaction/integration costs.  The pre-tax impacts are reported as follows:


                                                             Building Efficiency                                          Automotive Experience                                           Power Solutions                         Consolidated JCI
                                                            -------------------                                          ---------------------                                            ---------------                         ----------------

                                                                            2014              2013 (Revised)                           2014                        2013 (Revised)                           2014   2013 (Revised)                            2014    2013 (Revised)
                                                                            ----               -------------                           ----                         -------------                           ----   -------------                             ----     -------------

    Segment income, as reported                                             $930                                  $984                  $886                                         $698                   $1,061                   $1,004                   $2,877                   $2,686


    Non-recurring/unusual items:

      Transaction/integration costs                                           35                                     -                    8                                            -                       -                       -                      43                        -

      Loss on business divestitures                                           25                                    22                    95                                            -                       -                       -                     120                       22

      Equity affiliate gain                                                    -                                    -                    -                                        (82)                       -                       -                       -                    (82)

      Pension settlement (gain) loss                                           7                                  (28)                    5                                         (25)                       4                     (16)                      16                     (69)
                                                                             ---                                   ---                   ---                                          ---                      ---                      ---                      ---                      ---


    Segment income, excluding non-
     recurring/unusual items                                                $997                                  $978                  $994                                         $591                   $1,065                     $988                   $3,056                   $2,557
                                                                            ====                                  ====                  ====                                         ====                   ======                     ====                   ======                   ======




    2.  Earnings Per Share Reconciliation


    A reconciliation of earnings per share, as
     reported, to earnings per share, excluding non-
     recurring/unusual items and transaction/
     integration costs, for the respective quarters and
     annual periods is shown below:



                                            Net Income Attributable                         Net Income Attributable
                                                     to JCI                                  to JCI from Continuing
                                                                                                   Operations
                                            -----------------------                        ------------------------

                                              Three Months Ended                              Three Months Ended

                                                 September 30,                                   September 30,
                                                 -------------                                   -------------

                                                               2014 2013 (Revised)                                    2014  2013 (Revised)
                                                               ----  -------------                                    ----   -------------

                                                  (unaudited)                                     (unaudited)


    Earnings per share, as reported                           $0.46                  $0.15                            $0.46                    $0.08


    Non-recurring/unusual items, net of
     tax:

      Pension settlement (gain) loss                           0.01                 (0.06)                            0.01                   (0.06)

      Mark-to-market (gains)/charges for
       pension and postretirement plans                        0.31                 (0.34)                            0.31                   (0.34)

      Transaction/integration costs                            0.03                      -                            0.03                        -

      Loss (gain) on business divestitures                        -                (0.34)                               -                    0.03

      Restructuring and impairment costs                       0.20                   1.00                             0.20                     0.96

      Foreign earnings repatriation
       provision                                               0.05                   0.30                             0.05                        -

      Tax valuation allowances and other
       tax items                                             (0.03)                  0.24                           (0.03)                    0.24
                                                              -----                   ----                            -----                     ----


    Earnings per share, excluding non-
     recurring/unusual items*                                 $1.04                  $0.95                            $1.04                    $0.91
                                                              =====                  =====                            =====                    =====


                                            Net Income Attributable                         Net Income Attributable
                                                     to JCI                                  to JCI from Continuing
                                                                                                   Operations
                                            -----------------------                        ------------------------

                                              Twelve Months Ended                             Twelve Months Ended

                                                 September 30,                                   September 30,
                                                 -------------                                   -------------

                                                               2014 2013 (Revised)                                    2014  2013 (Revised)
                                                               ----  -------------                                    ----   -------------

                                                  (unaudited)                                     (unaudited)


    Earnings per share, as reported                           $1.80                  $1.71                            $2.12                    $1.56


    Non-recurring/unusual items, net of
     tax:

      Equity affiliate fair value
       adjustment                                                 -                (0.07)                               -                  (0.07)

      Pension settlement (gain) loss                           0.01                 (0.06)                            0.01                   (0.06)
       Mark-to-market (gains)/charges for
        pension and postretirement plans
                                                               0.31                 (0.34)                            0.31                   (0.34)

      Transaction/integration costs                            0.05                      -                            0.05                        -

      Loss (gain) on business divestitures                     0.23                 (0.34)                            0.23                     0.03

      Restructuring and impairment costs                       0.42                   1.27                             0.42                     1.23

      Electronics divestiture related costs                    0.38                      -                               -                       -

      Foreign earnings repatriation
       provision                                               0.05                   0.30                             0.05                        -

      Tax valuation allowances and other
       tax items                                             (0.03)                  0.20                           (0.03)                    0.20
                                                              -----                   ----                            -----                     ----


    Earnings per share, excluding non-
     recurring/unusual items*                                 $3.24                  $2.66                            $3.18                    $2.55
                                                              =====                  =====                            =====                    =====


    * May not sum due to rounding.



    3. Income Taxes


    The Company's effective tax rate from continuing operations before consideration of non-
     cash tax charges, restructuring and impairment costs, other non-recurring items and
     transaction/integration costs for the fourth quarter and year ending September 30, 2014
     is approximately 20 percent and 19 percent, respectively.


    4. Restructuring


    The fiscal 2014 fourth quarter includes restructuring and impairment costs of $162 million
     related primarily to cost reduction initiatives in the Building Efficiency business.  The
     costs consist primarily of workforce reductions and a goodwill impairment charge of $47
     million related to Building Efficiency.  The fiscal 2013 fourth quarter includes
     restructuring and impairment costs of $730 million related to cost reduction initiatives
     in the Automotive Experience, Building Efficiency and Power Solutions businesses. The
     costs consist primarily of workforce reductions and a goodwill impairment charge of $430
     million related to Automotive Interiors.


    5. Business Divestitures


    The sale of the Company's remaining Automotive Electronics business to Visteon closed on
     July 1, 2014. The Electronics business met the criteria to be classified as a discontinued
     operation and the condensed consolidated financial statements have been revised for all
     periods presented.


    In the fourth quarter of fiscal 2013, the Company completed the sale of its HomeLink
     business, which had been part of the Automotive Experience Electronics segment. The
     Company received cash proceeds of approximately $700 million and recorded a net gain of
     $476 million ($257 million after-tax) as a result of the sale.  The remaining Electronics
     business was shown as assets held for sale and liabilities held for sale in the
     accompanying condensed consolidated statement of financial position as of September 30,
     2013.  In the fourth quarter of fiscal 2013, the Company also sold its commercial
     refrigeration business in France.  The Company recorded a net loss of $22 million as a
     result of the sale.


    6. Held for Sale


    On September 30, 2014, the Company announced its intention to divest its Global Workplace
     Solutions (GWS) business. The GWS business met the reporting requirements for held for
     sale classification in the accompanying condensed consolidated statement of financial
     position as of September 30, 2014.


    As disclosed in the third quarter of fiscal 2014, the majority of the Automotive Interiors
     business met the reporting requirements for held for sale classification and is reported
     as such in the accompanying condensed consolidated statement of financial position as of
     September 30, 2014.


    7. Mark-to-Market Pension and Postretirement Plans


    The pension and postretirement mark-to-market gain or charge for each period is treated
     as a non-recurring/unusual item.  The fiscal 2014 fourth quarter includes a mark-to-
     market charge for pension and postretirement plans of $274 million ($0.31/share).  The
     fiscal 2013 fourth quarter includes a mark-to-market gain for pension and postretirement
     plans of $405 million ($0.34/share).


    8.  Earnings Per Share


    The following table reconciles the numerators and denominators used to calculate basic and
     diluted earning per share (in millions):


                       Three Months Ended     Twelve Months Ended

                          September 30,          September 30,
                          -------------          -------------

                        2014             2013      2014             2013
                        ----             ----      ----             ----

                           (unaudited)            (unaudited)

    Income
     Available to
     Common
     Shareholders


    Income from
     continuing
     operations         $311              $54    $1,433           $1,077

    Income (loss)
     from
     discontinued
     operations          (2)              51     (218)             101
                         ---              ---      ----              ---

    Basic and
     diluted
     income
     available to
     common
     shareholders       $309             $105    $1,215           $1,178
                        ====             ====    ======           ======


    Weighted
     Average
     Shares
     Outstanding

    Basic weighted
     average
     shares
     outstanding       665.3            683.8     666.9            683.7

    Effect of
     dilutive
     securities:

         Stock options
          and unvested
          restricted
          stock          7.7              6.9       7.9              5.5

    Diluted
     weighted
     average
     shares
     outstanding       673.0            690.7     674.8            689.2
                       =====            =====     =====            =====

SOURCE Johnson Controls