Johnson Controls increases share repurchase authorization by $4 billion and raises annual dividend to $1.08 per share

Rhea-AI Summary

Johnson Controls International plc (NYSE: JCI) has announced an increase in its annual cash dividend to $1.08 per share from $1.04, effective from the fiscal second quarter, with a payout ratio of approximately 42%. This dividend payment of $0.27 per share is scheduled for April 16, 2021. Additionally, the company has raised its share repurchase authorization by $4 billion, supplementing the $2 billion remaining from a previous authorization. This strategic move highlights the company's strong balance sheet and ongoing commitment to return capital to shareholders.

Positive

• Dividend increased from $1.04 to $1.08 per share, enhancing shareholder returns.
• Payout ratio remains strong at approximately 42%, indicating financial stability.
• Share repurchase authorization increased by $4 billion, boosting shareholder value.

Negative

• None.

CORK, Ireland, March 11, 2021 /PRNewswire/ -- The Johnson Controls International plc (NYSE: JCI) Board of Directors today approved an increase to its regular annual cash dividend to $1.08 per common share from $1.04 previously, representing a payout ratio of approximately 42 percent. The increase will be effective beginning with the fiscal second quarter dividend payment of $0.27 per share, which was declared today and will be payable on April 16, 2021 to shareholders of record at the close of business on March 22, 2021. Johnson Controls has paid a consecutive dividend since 1887.

The board also increased the company's share repurchase authorization by $4 billion, adding to the $2.0 billion remaining as of the end of the first fiscal quarter under the share repurchase authorization approved in 2019.

The increase to the share repurchase authorization does not impact Johnson Controls previously announced intent to repurchase approximately $1 billion of its ordinary shares during fiscal 2021.  Johnson Controls intends to utilize the increased authorization as part of the execution of its capital allocation strategy during the next several years.

"Today's announcement reflects the strength of our balance sheet and liquidity position, as well as confidence that our operating performance will continue to generate strong free cash flow while allowing us to invest in our businesses," said George Oliver, chairman and chief executive officer. "With our strong cash flow and balance sheet, and our commitment to a balanced capital allocation framework, we remain well positioned to execute on our strategic growth initiatives and return significant capital to shareholders," Oliver continued.

In implementing share repurchases, Johnson Controls may purchase shares in the open market or through a variety of methods as permitted by applicable securities laws and other legal requirements, including through the use of a Rule 10b5-1 plan. There exists no obligation under the share repurchase authorization to repurchase any particular amount of shares within any timeframe, and the manner, timing and amount of any purchase will be determined subject to an evaluation of the price and availability of the Johnson Controls' shares, general market conditions, and other factors, although Johnson Controls may enter into a pre-arranged trading plan under Rule 10b5-1 from time to time. Johnson Controls' authorization to repurchase shares does not have a set expiration date and may be amended, suspended or terminated at any time at the Johnson Controls' discretion without prior notice.

INVESTOR CONTACTS:	MEDIA CONTACTS:
Antonella Franzen	Chaz Bickers
Direct: 609.720.4665	Direct: 224.307.0655
Email: antonella.franzen@jci.com	Email: charles.norman.bickers@jci.com
Ryan Edelman	Michael Isaac
Direct: 609.720.4545	Direct: +41 52 6330374
Email: ryan.edelman@jci.com	Email: michael.isaac@jci.com

About Johnson Controls:
At Johnson Controls, we transform the environments where people live, work, learn and play. From optimizing building performance to improving safety and enhancing comfort, we drive the outcomes that matter most. We deliver our promise in industries such as healthcare, education, data centers and manufacturing. With a global team of 100,000 experts in more than 150 countries and over 130 years of innovation, we are the power behind our customers' mission. Our leading portfolio of building technology and solutions includes some of the most trusted names in the industry, such as Tyco®, YORK®, Metasys®, Ruskin®, Titus®, Frick®, Penn®, Sabroe®, Simplex®, Ansul® and Grinnell®. For more information, visit www.johnsoncontrols.com or follow us @johnsoncontrols on Twitter.

Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements

Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures and debt levels are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls' control, that could cause Johnson Controls' actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to manage general economic, business, capital market and geopolitical conditions, including the impacts of natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; the strength of the U.S. or other economies; changes or uncertainty in laws, regulations, rates, policies or interpretations that impact Johnson Controls' business operations or tax status; the ability to develop or acquire new products and technologies that achieve market acceptance; changes to laws or policies governing foreign trade, including increased tariffs or trade restrictions; maintaining the capacity, reliability and security of our enterprise and product information technology infrastructure; the risk of infringement or expiration of intellectual property rights; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions such as its merger with Tyco and the disposition of the Power Solutions business;  the outcome of litigation and governmental proceedings; the ability to hire and retain key senior management; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; the availability of raw materials and component products; fluctuations in currency exchange rates; work stoppages, union negotiations, labor disputes and other matters associated with the labor force; the cancellation of or changes to commercial arrangements.  A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2020 fiscal year filed with the SEC on November 16, 2020, which is available at www.sec.gov and www.johnsoncontrols.com under the "Investors" tab. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.

 

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SOURCE Johnson Controls International plc

FAQ

What is the new dividend amount for JCI announced on March 11, 2021?

The new dividend amount for JCI is $1.08 per share, increased from $1.04.

What is the effective date for JCI's increased dividend?

The increased dividend will be effective starting April 16, 2021.

How much has JCI increased its share repurchase authorization?

JCI has increased its share repurchase authorization by $4 billion.

What is the payout ratio for JCI's dividend?

The payout ratio for JCI's dividend is approximately 42%.

When is the payment date for the new dividend announced by JCI?

The payment date for the new dividend is April 16, 2021.