Johnson Controls, a global provider of solutions for smart buildings, recorded revenues of $2.32 billion in its North America building solutions segment in fiscal Q3, slightly up compared to revenues of $2.24 billion in the same period the previous year , according to the company’s earnings release.
The company highlighted that growth in this segment in North America was driven by strong growth in HVAC & Controls and, to a lesser extent, growth in Fire & Security. “This was partially offset by a decline in Performance Solutions due to the timing of projects,” the company said.
At a global level, the company recorded revenues of $6.5 million in the third fiscal quarter, an increase of 3% year-on-year.
In a conference call with investors. the company’s chairman and CEO, George Oliver said that Johnson Controls “continue to see good underlying growth in the core HVAC and Fire & Security end markets across most of the regions.”
In EMEA, the building solutions segment generated overall revenues of $922 million, almost flat compared to the same quarter in 2018, while building solutions sales in Asia Pacific (APAC) recorded revenues of $ 691 million in fiscal Q3, up compared to $681 million in fiscal Q3 2018.
“Growth was positive across most regions, led by strength in HVAC, Fire & Security and Industrial Refrigeration in Europe and Latin America.” Johnson Controls also noted that growth in the APAC business was driven primarily by strong growth in project installations and solid growth in China.
“In pursuit of developing our strategy in connected buildings we are actively partnering with our customers, technology providers, and integrators to create comprehensive digital solutions with attractive value propositions that assist our customers in achieving their goals and missions,”Oliver said.
“As I think about the reinvestments we have made and continue to make to support future growth I am confident that we are strategically strengthening our market position (…) Our objective to lead the evolution of smarter, more efficient, and more sustainable buildings and infrastructure is coming more into focus every day,” Oliver added.
In April, the company closed the previously announced sale of the Power Solutions business to Brookfield Business Partners for net cash proceeds of approximately $11.6 billion. The company said that net cash proceeds from the transaction are expected to be used to reduce $3.4 billion in existing debt, and fund the repurchase of up to $8.2 billion in ordinary shares.
“With the closing of the Power Solutions sale at the end of April our ongoing portfolio transformation will be focused on optimizing the alignment of our portfolio with our longer-term strategic vision around connected buildings and infrastructure.”