logo
Empowering women in finance

PinkInvestments on Youtube Youtube     PinkInvestments on Facebook Facebook     

PinkInvestments on Twitter Twitter       PinkInvestments on LinkedIn LinkedIn

 Investment Profile by Pink Investments

Information about this investment.

 Johnson Controls

Back to portfolio
Show performance

 Johnson Controls (JCI:NYSE)

Johnson Controls logoPeople tend to focus on vehicle emissions as a principal source of the heat-trapping carbon dioxide that propels global warming. But building operations actually account for a much greater share of carbon emissions—about 40%. Therefore they are the single most important contributor to climate change. And buildings, unlike vehicles, are also an enduring capital investment. Improving energy efficiency is the first and most important step toward achieving sustainability in buildings and organizations. Energy efficiency helps control rising energy costs, reduces environmental footprints, and increases the value and competitiveness of buildings.
Efficiency is the fastest, cheapest and most environmentally powerful element to consider when building from scratch or retrofitting an existing building.

In the quest to turn back carbon emission, it would appear that building energy efficiency comes high up the order.

Johnson Controls is a global diversified company in the building and automotive industries.It has 162,000 employees It has 3 main business units:

Building efficiency: This unit is a leading provider of equipment, controls and services for heating, ventilating, air-conditioning, refrigeration and security systems.

Johnson Controls was involved in the deep energy retrofit of the Empire State building in New York. This achieved a total reduction in energy use of 38.4% - making it the most energy-efficient building retrofit in the world. The savings from all the measures adopted at the Empire State Building now total $4.4 million annually. The retrofit costs will be recovered in just three years.

Beyond the cost savings of reduced energy consumption, retrofits represent "capital-cost avoidance"—money otherwise expended to develop new sources of energy—"because a watt saved is so much less expensive through this process than a watt generated by solar or wind.

A retrofit also creates local jobs too.

Automotive Experience: This unit is a global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics

Power Solutions: This unit is the global leader in lead-acid automotive batteries and advanced batteries for Start-Stop, hybrid and electric vehicles.

Johnson Controls has been named one of the "World's Most Ethical Companies" for the sixth consecutive year by the Ethisphere Institute. Ethisphere is dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.

Johnson Controls started in 1885 in Milwaukee, Wisconsin by Warren Johnson, inventor of the first electric room thermostat. It has come a long way since then and now has a market cap of$22.10B. So this is no small fry! the company has paid consecutive dividends to investors since 1887.It currently pays a handy 2.2% dividend yield. The latest financial figures look good:

 

 

Fiscal Year 2011 global sales were $40.8 billion Record net sales of $10.4 billion vs. $9.5 billion in Q1 2011, up 9%

Record income from business segments of $598 million vs. $533 million, up 12%

Record net income of $410 million or $0.60 per diluted share compared with net income of $375 million, or $0.55 per diluted share in the 2011 first quarter

 

 

With its long history of strong performance and its leadership in energy efficiency building and retrofits, this company looks set to continue growing in a sustainable way.

Buy Johnson Controls (JCI:NYSE) up to $34

Show performance
 

Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.