Bulletin: Ratings On Johnson Controls International PLC Unchanged As Management Considers Divesting Battery Unit

NEW YORK (S&P Global Ratings) March 13, 2018--S&P Global Ratings said today that its ratings and outlook on Johnson Controls International PLC (JCI) are not immediately affected by the company's announcement that it intends to explore strategic alternatives for its Power Solutions business. With $7.3 billion of sales and $1.6 billion in reported EBITDA in the fiscal year that ended Sept. 30, 2017, the Power Solutions business accounted for about a quarter of sales and 40% of earnings at JCI (BBB+/Stable/A-2). Power Solutions is the world's largest producer of lead-acid automotive batteries, with over three-quarters of its sales in the replacement market. Power Solutions also sells batteries with newer absorbent glass mat, enhanced flooded, and lithium-ion technologies. Its profitability is

...NEW YORK (S&P Global Ratings) March 13, 2018--S&P Global Ratings said today that its ratings and outlook on Johnson Controls International PLC (JCI) are not immediately affected by the company's announcement that it intends to explore strategic alternatives for its Power Solutions business. With $7.3 billion of sales and $1.6 billion in reported EBITDA in the fiscal year that ended Sept. 30, 2017, the Power Solutions business accounted for about a quarter of sales and 40% of earnings at JCI (###+/Stable/A-2). Power Solutions is the world's largest producer of lead-acid automotive batteries, with over three-quarters of its sales in the replacement market. Power Solutions also sells batteries with newer absorbent glass mat, enhanced flooded, and lithium-ion technologies. Its profitability is better than that of the consolidated JCI, and we estimate JCI's adjusted EBITDA margin was 13% for the 12 months ended Dec. 31, 2017. However, JCI management has decided to focus on its core HVAC, fire...

Bulletin