Johnson Controls(JCI) ZACKS·2024-11-21 16:05Core Viewpoint - Johnson Controls International plc (JCI) has underperformed in operational performance, particularly in its Building Solutions Asia Pacific segment, compounded by foreign currency challenges [1][3]. Group 1: Operational Performance - JCI is facing ongoing weakness in its Building Solutions Asia Pacific segment, especially in system sales in China, with expectations of continued economic softness in the region throughout fiscal 2024 [3]. - The company reported a 5.1% year-over-year increase in selling, general and administrative (SG&A) expenses, totaling 5.7 billion during fiscal 2024 [4]. - SG&A expenses as a percentage of total revenues increased by 60 basis points to 24.7%, indicating rising corporate costs related to IT investments and cybersecurity enhancements [5]. Group 2: Financial Impact - Adverse foreign currency translations negatively impacted JCI's sales by 53 million in the fiscal fourth quarter, highlighting the risks associated with its global market exposure [6]. - The strengthening U.S. dollar poses a risk to profit margins, as the company may need to raise prices in international markets [6].