Johnson Controls misses quarterly revenue estimates on supply chain snags

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The logo and trading symbol for Johnson Controls International is displayed on a board on the floor of the NYSE in New York

(Reuters) – Johnson Controls International reported lower-than-expected first-quarter revenue on Wednesday, as the provider of heating and air-conditioning systems for offices, hospitals and schools struggled with supply chain logjams.

The company’s first-quarter sales rose about 3.5% to $6.07 billion, compared with analysts’ expectation of $6.25 billion.

Adjusted profit of 67 cents per share was in line with the average analyst estimate, according to Refinitiv data.

Shares of the company fell 1.26% before the bell. They had lost nearly 20% in 2022.

The Ireland-headquartered company has been reeling from a global shortage of semiconductor chips and higher raw material costs amid a tight labor market.

Johnson Controls raised the lower end of its full-year adjusted profit forecast to $3.30 per share from $3.20 it expected earlier. It retained the higher end at $3.60 per share.

Net income attributable for the quarter ended Dec. 31 was $118 million, or 17 cents per share, compared with $381 million or 54 cents per share, a year earlier.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Shilpi Majumdar)

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