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Johnson Controls Inc JCI
Q1 2012 Earnings Call Transcript

Transcript Call Date 01/19/2012

Operator: Welcome and thank you for standing by. At this time, all lines have been placed in a listen-only mode until the question-and-answer session.

Today's call is being recorded. If anyone has any objections, you may disconnect at this time.

I would now like to turn today's call over to Mr. Glen Ponczak. Sir, you may begin.

Glen Ponczak - VP, IR: Good morning. Thanks Kim and welcome everybody. Before we begin, just want to remind you that Johnson Controls will make forward-looking statements in this presentation, pertaining to its financial results for fiscal 2012 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical facts are statements that are or could be deemed forward-looking statements and include terms such as outlook, expectations, estimates or forecasts.

For those statements, the company cautions that numerous important factors such as automotive vehicle production levels, mix and schedules, energy and commodity prices, the strength of U.S. or other economies, currency exchange rates, cancellation of or changes to commercial contracts, changes in the levels or timing of investments and commercial buildings, as well as other factors discussed in Item 1A of Part I of the company's most recent Form 10-K filing, could affect the company's actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company.

I'm joined today by Steve Roell, Chairman and Chief Executive Officer of Johnson Controls who will give an overview of the quarter, followed by Bruce McDonald, Executive Vice President and Chief Financial Officer will give details of the business units results and the financial review. That will be followed by questions and answers and we will end at noon, Eastern Time.

With that, I turn it over to Steve.

Stephen A. Roell - Chairman, President and CEO: Thank you, Glen. Good morning and thank you for joining us. Before I go into the financials, I just wanted to spend some time talking about the business environment, to give you some sense for what we see not only in the quarter that just ended, but sort of what we anticipate going forward for the full fiscal year.

Let's start with the Automotive industry production levels, in the quarter itself production levels in North America and China were very consistent with what we expected. The growth of 16% North America, China being flat, I'll come back and talk about that. If there was any surprise in the quarter, just a slight surprise with European production being down slightly. We didn't expect a 4% decline, but in general I would say that the quarter from a production standpoint really was not a cause of many of our concerns in the quarter itself.

If I now turn to the full fiscal year, the guidance that we provided to you for North America and China remains. We don't see any reason to adjust that, and therefore I guess what I would like to talk about is China. You'll hear two differing estimates for China production. One being flat one being up 8 to 10 and that difference is what we are looking at the total industry including trucks or where you just really get the passenger car element.

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