Smart building solution company Johnson Controls recorded revenues of $2 billion in its North America building solutions segment in fiscal Q3 2020, down 13% compared to revenues of $2.32 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 lesser extent, service. Growth in Performance Solutions was more than offset by a decline in Fire & Security and HVAC & Controls, the company said.
“Applied HVAC declined high-single-digits and Fire & Security was down high-teens with Performance Solutions growing mid-single-digits in the quarter,” the company’s CFO Brian Stief told a conference call with investors.
“Orders in North America declined 16% with similar percent declines in both, HVAC and Fire & Security. In June, North American orders improved sequentially, trending down high-single-digits. North American backlog end of the quarter at $5.8 billion, up 2% year-over-year,” Stief said.
In EMEA and Latin America, the company recorded revenues of $756 million in fiscal Q3 2020, down 18% compared to the same period the previous year.
“Moving to APAC, revenues were down 12%. China has significantly improved from the mid-30s decline we saw in Q2 to down only 4% in Q3. Although activity in China continues to improve, we were negatively impacted by extended and renewed lockdowns in other parts of Asia. APAC orders declined 10% in Q3, but backlog remains up 4% year-over-year at $1.6 billion,” the executive added.
At a global level, the company recorded revenues of $5.34 million in fiscal Q3, down 17% year-on-year, mainly due to the impact of the COVID-19 pandemic.
“Although global macro conditions remain challenging, and the political and social climate in many parts of the world remains extraordinarily dynamic, we are capitalizing on near-term opportunities to engage with our customers as they enhance the health and safety of their buildings and position ourselves long-term as a leader in intelligent building solutions,” the company’s chairman and CEO George Oliver said during the earnings conference call.
“As our customers plan for the safe return of their occupants, we are committed to helping them prepare to reopen healthy buildings by delivering solutions and support that enhance the safety of their environment and increases the efficiency of their operations. Over the course of the last few months, there has been active engagement with our customers related to these solutions, particularly indoor air quality, location based services for contact tracing, thermal cameras and touch-less access control, which are beginning to convert to revenue.”