Johnson Controls International PLC said it continued to see strong order momentum as it reported a modest increase in fourth quarter sales although net income dropped.
The Cork, Ireland-based builder said in the three months ended September 30, sales rose 3% to $6.91 billion from $6.73 billion the year prior, while net income dropped to $549 million from $809 million.
The firm said on an adjusted basis net income from continuing operations of $719 million was up 5% versus the prior year.
Sales grew in North America and Europe, Middle East, Africa/Latin America but declined in Asia Pacific.
“Our fiscal 2023 results, highlighted by strong sales growth and margin expansion, further validate that our strategy of providing solutions that make buildings smarter, healthier, and more sustainable continues to gain momentum,” said Chairman and CEO George Oliver.
“We continue to see strong order momentum and record backlog entering our new fiscal year,” Oliver added.
Chief Financial Officer Olivier Leonetti said the firm has “plenty of runway for ongoing top line growth, margin expansion, and improving cash flow going forward.”
Looking ahead, the company expects flat organic revenue growth in the first quarter and adjusted EPS before special items of between $0.48 to $0.50.