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Exhibit 99.1
     
News release   (NEW RELEASE LOGO)
FOR IMMEDIATE RELEASE
         
CONTACT:
  Glen L. Ponczak (Investors)   July 20, 2011
 
  (414) 524-2375    
 
       
 
  Paul Mason (Media)    
 
  (414) 524-6114    
Johnson Controls Q3 2011 revenues increase 21% to record $10.4 billion with higher segment income
MILWAUKEE, July 20, 2011 . . . For the third quarter of fiscal 2011, Johnson Controls reported a 21% increase in revenues with double-digit sales increases in each of its three businesses. Income from business segments was $512 million while net income was $357 million. Diluted earnings per share were $0.52.
The 2011 quarter includes non-recurring pre-tax charges of $29 million, or $0.04 per share, associated with recent acquisitions and related costs. The 2010 quarter included a non-cash tax benefit of $51 million, or $0.07 per share.
Excluding non-recurring items, highlights for the company’s third quarter of 2011 include:
  Record net sales of $10.4 billion vs. $8.5 billion in Q3 2010, up 21%
 
  Income from business segments of $541 million compared with $496 million a year ago, up 9%
 
  Net income of $383 million vs. $367 million in Q3 2010, up 4%
 
  Diluted earnings per share of $0.56 vs. $0.54 last year
Johnson Controls said it believes that using the adjusted numbers provide a more meaningful comparison of its underlying operating performance.
The company said sales in the 2011 quarter were negatively impacted by approximately $400 million due to disruptions in automotive production resulting from the March 2011 earthquake in Japan.
“These record revenues mark our seventh consecutive quarter of double-digit growth. All of our businesses are continuing to grow faster than their underlying industries as a result of share gains and our strong position in the emerging markets,” said Stephen A. Roell, Johnson Controls Chairman and Chief Executive Officer. “Automotive Experience in particular exceeded the expectations set as we entered the third quarter due to faster-than-expected market recovery following the Japan earthquake and higher production levels in some markets.”

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News release   (NEW RELEASE LOGO)
Mr. Roell continued, “We continue to benefit from our investments in growth. Backlog in our Building Efficiency business increased at a double-digit pace as we continue to gain share, especially across our HVAC equipment offerings. We have completed the acquisitions of Keiper/Recaro in our automotive business and EnergyConnect in Building Efficiency. We are confident that the expanded capabilities from these acquisitions will drive accelerated growth and profitability in the coming years.”
Business Segments
Automotive Experience sales in the quarter increased 21% to $5.1 billion versus $4.2 billion last year due primarily to higher production volumes, new program launches and incremental sales from recent acquisitions. The higher global volumes were partially offset by lower production by Japanese automakers due to disruptions from the March 2011 earthquake.
North American revenues increased to $1.8 billion from $1.7 billion last year as the significant reduction in domestic vehicle production by its Japanese customers offset higher sales to other automakers. European sales were up 38% to $2.8 billion from $2.0 billion in the 2010 quarter due to higher production levels, the launch of new seating and interiors programs and the incremental sales from recent acquisitions. Excluding the impact of foreign exchange, revenues increased 24%. Sales in Asia increased 24% to $546 million from $440 million in 2010. China revenues, which are mostly generated through unconsolidated joint ventures, rose 20% to $936 million compared with $780 million a year ago. Johnson Controls has a 45% share of the Chinese automotive seating market and is launching multiple new interiors programs over the next three years.
The company noted that it completed its acquisition of seating metals and mechanism component maker Keiper / Recaro on June 20, 2011. Johnson Controls expects this acquisition will drive accelerated growth and profitability in the Automotive Experience segment.
Excluding non-recurring items, Automotive Experience reported segment income of $171 million in the current quarter. This was comparable with the prior year quarter as North American and Asia profitability in the 2011 quarter was negatively impacted by Japanese OE production disruptions. Asia segment income doubled versus last year to $51 million, as growth in China and Korea more than offset the production disruptions. Europe segment income increased 8% to $53 million, compared with $49 million last year, as the company continued efforts to improve operational efficiencies related to certain recent program launches.
Power Solutions sales in the third quarter of 2011 increased 22% to $1.4 billion from $1.1 billion last year reflecting higher volumes in Asia, the incremental volume associated with the consolidation of its Korean joint venture at the end of last year and higher lead prices. Aftermarket unit shipments increased 10%. Higher global automotive production and market share gains resulted in an 8% increase in original equipment battery shipments.
Power Solutions segment income was up 21% to $163 million versus $135 million in the third quarter of 2010. The higher income is primarily the result of the higher volumes. Excluding the impact of lead, segment income margin in the current quarter increased 60 basis points versus the third quarter of 2010.

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News release   (NEW RELEASE LOGO)
In June, Johnson Controls announced plans to invest $138.5 million to convert its battery plant near Toledo, Ohio into an Absorbent Glass Mat (AGM) battery facility for Start-Stop and other high efficiency vehicles. The facility will be the company’s first dedicated AGM plant in the United States and will add 6 million units in AGM battery capacity by 2013. Johnson Controls has previously announced that it was expanding AGM manufacturing capacity in Europe to 11.2 million units by 2015. Start-Stop vehicle technology is emerging globally as one of the most affordable options for consumers who want to buy a more sustainable and fuel-efficient car for a small cost premium. Johnson Controls believes the market for AGM batteries will grow to 35 million batteries globally by 2015.
Building Efficiency sales in the 2011 third quarter were $3.9 billion, up 21% compared with $3.2 billion last year. All five segments of Building Efficiency increased revenues at a double-digit rate led by Asia, which increased 43% and Global Workplace Solutions, which increased 33%. Building Efficiency third quarter orders increased by 12% globally, with the largest growth in Asia and Europe. The backlog of uncompleted contracts in the 2011 third quarter was up 16% to $5.1 billion led by strong demand in the Middle East and Asia. Market share gains led to a 33% increase in shipments of small and large tonnage chillers globally, reflecting double-digit increases in all regions of the world.
Building Efficiency segment income was $207 million, up 9% from the 2010 quarter, with increases in North America systems and services, Global Workplace Solutions and Asia, where segment income margins improved by 40 basis points over the prior year quarter. The company recorded a net $20 million charge in Q3 2011 related to South American indirect taxes, commercial settlements and the release of a warranty reserve.
Johnson Controls said that while its North America service business grew in the current quarter, its results were lower than anticipated due to a late start of the summer cooling season.
Q4 Guidance update
Johnson Controls said it expects to earn $0.75 per diluted share (GAAP) in its fourth fiscal quarter. The Q4 estimate includes charges of up to $0.03/share for acquisition and related costs and up to $0.02/share related to Japanese automotive OE production disruptions.
The company will provide a detailed review of its fiscal year 2012 market expectations and growth strategies at its annual analyst day in New York on October 12, 2011.
“As we enter the final quarter of our fiscal year, we remain on track to generate record sales and earnings in 2011. We expect to see higher European automotive margins in our fourth quarter as the recent acquisitions become more accretive and as operational efficiencies improve,” said Mr. Roell. “We will continue to make strategic investments that will help us create new competitive advantages and further outpace the growth rates of our markets. Our strong backlogs and continued market share gains should provide good momentum as we enter 2012. We believe we are positioned to deliver sustainable, profitable growth.”

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News release   (NEW RELEASE LOGO)
###
FORWARD-LOOKING STATEMENT
Johnson Controls, Inc. has made forward-looking statements in this document pertaining to its financial results for fiscal 2011 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements, other than statements of historical fact, 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, customer or supplier disruptions, energy and commodity prices, the strength of the U.S. or other economies, currency exchange rates, cancellation of or changes to commercial contracts as well as other factors discussed in Item 1A of Part I of the Company’s most recent Form 10-k filing (filed November 23, 2010) 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.
###
Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. The company’s 142,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Johnson Controls’ commitment to sustainability dates back to its roots in 1885, with the invention of the first electric room thermostat. Through its growth strategies and by increasing market share, Johnson Controls is committed to delivering value to shareholders and making its customers successful. In 2011, Corporate Responsibility Magazine recognized Johnson Controls as the #1 company in its annual “100 Best Corporate Citizens” list. For additional information, please visit http://www.johnsoncontrols.com.

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July 20, 2011
Page 5
JOHNSON CONTROLS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data; unaudited)
                 
    Three Months Ended June 30,  
    2011     2010  
Net sales
  $ 10,364     $ 8,540  
Cost of sales
    8,814       7,201  
 
           
Gross profit
    1,550       1,339  
 
               
Selling, general and administrative expenses
    (1,094 )     (895 )
Net financing charges
    (43 )     (39 )
Equity income
    56       52  
 
           
 
               
Income before income taxes
    469       457  
 
               
Provision for income taxes
    89       31  
 
           
 
               
Net income
    380       426  
 
               
Less: income attributable to noncontrolling interests
    23       8  
 
           
 
               
Net income attributable to JCI
  $ 357     $ 418  
 
           
 
               
Diluted earnings per share
  $ 0.52     $ 0.61  
 
           
 
               
Diluted weighted average shares
    691       684  
 
           
Shares outstanding at period end
    680       673  
 
           

 


 

July 20, 2011
Page 6
JOHNSON CONTROLS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data; unaudited)
                 
    Nine Months Ended June 30,  
    2011     2010  
Net sales
  $ 30,045     $ 25,265  
Cost of sales
    25,607       21,467  
 
           
Gross profit
    4,438       3,798  
 
               
Selling, general and administrative expenses
    (3,055 )     (2,625 )
Net financing charges
    (124 )     (117 )
Equity income
    183       156  
 
           
 
               
Income before income taxes
    1,442       1,212  
Provision for income taxes
    274       123  
 
           
 
               
Net income
    1,168       1,089  
 
               
Less: income attributable to noncontrolling interests
    82       47  
 
           
 
               
Net income attributable to JCI
  $ 1,086     $ 1,042  
 
           
 
               
Diluted earnings per share
  $ 1.58     $ 1.53  
 
           
 
               
Diluted weighted average shares
    690       682  
 
           
 
               
Shares outstanding at period end
    680       673  
 
           

 


 

July 20, 2011
Page 7
JOHNSON CONTROLS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions; unaudited)
                         
    June 30,     September 30,     June 30,  
    2011     2010     2010  
ASSETS
                       
Cash and cash equivalents
  $ 335     $ 560     $ 908  
Accounts receivable — net
    7,094       6,095       5,452  
Inventories
    2,451       1,786       1,644  
Other current assets
    2,678       2,211       2,114  
 
                 
Current assets
    12,558       10,652       10,118  
 
                       
Property, plant and equipment — net
    5,185       4,096       3,706  
Goodwill
    7,093       6,501       6,217  
Other intangible assets — net
    822       741       695  
Investments in partially-owned affiliates
    952       728       766  
Other noncurrent assets
    3,259       3,025       2,584  
 
                 
Total assets
  $ 29,869     $ 25,743     $ 24,086  
 
                 
 
                       
LIABILITIES AND EQUITY
                       
Short-term debt and current portion of long-term debt
  $ 657     $ 737     $ 727  
Accounts payable and accrued expenses
    7,433       6,548       5,928  
Other current liabilities
    3,064       2,625       2,377  
 
                 
Current liabilities
    11,154       9,910       9,032  
 
                       
Long-term debt
    4,519       2,652       2,638  
Other noncurrent liabilities
    2,488       2,808       2,771  
Redeemable noncontrolling interests
    229       196       163  
Shareholders’ equity attributable to JCI
    11,361       10,071       9,395  
Noncontrolling interests
    118       106       87  
 
                 
Total liabilities and equity
  $ 29,869     $ 25,743     $ 24,086  
 
                 

 


 

July 20, 2011
Page 8
JOHNSON CONTROLS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
                 
    Three Months Ended June 30,  
    2011     2010  
Operating Activities
               
Net income attributable to JCI
  $ 357     $ 418  
Income attributable to noncontrolling interests
    23       8  
 
           
 
               
Net income
    380       426  
 
               
Adjustments to reconcile net income to cash provided by operating activities:
               
Depreciation and amortization
    193       168  
Equity in earnings of partially-owned affiliates, net of dividends received
    (7 )     6  
Deferred income taxes
    (95 )     (51 )
Impairment charges
          11  
Other
    36       17  
Changes in working capital, excluding acquisitions:
               
Accounts receivable
    99       (182 )
Inventories
    (133 )     (111 )
Restructuring reserves
    (14 )     (32 )
Accounts payable and accrued liabilities
    (200 )     219  
Change in other assets and liabilities
    134       (44 )
 
           
Cash provided by operating activities
    393       427  
 
           
 
               
Investing Activities
               
Capital expenditures
    (365 )     (215 )
Sale of property, plant and equipment
    18       10  
Acquisition of businesses, net of cash acquired
    (458 )     (17 )
Other — net
    (111 )     (63 )
 
           
Cash used by investing activities
    (916 )     (285 )
 
           
 
Financing Activities
               
Increase (decrease) in short and long-term debt — net
    575       (5 )
Payment of cash dividends
    (108 )     (87 )
Other — net
    (4 )     9  
 
           
Cash provided (used) by financing activities
    463       (83 )
 
           
Effect of exchange rate changes on cash and cash equivalents
    (6 )     79  
 
           
Increase (decrease) in cash and cash equivalents
  $ (66 )   $ 138  
 
           

 


 

July 20, 2011
Page 9
JOHNSON CONTROLS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
                 
    Nine Months Ended June 30,  
    2011     2010  
Operating Activities
               
Net income attributable to JCI
  $ 1,086     $ 1,042  
Income attributable to noncontrolling interests
    82       47  
 
           
 
               
Net income
    1,168       1,089  
Adjustments to reconcile net income to cash provided by operating activities:
               
Depreciation and amortization
    547       524  
Equity in earnings of partially-owned affiliates, net of dividends received
    (80 )     (38 )
Deferred income taxes
    (95 )     (95 )
Impairment charges
          30  
Other
    93       79  
Changes in working capital, excluding acquisitions:
               
Accounts receivable
    (416 )     (218 )
Inventories
    (432 )     (208 )
Restructuring reserves
    (83 )     (156 )
Accounts payable and accrued liabilities
    (75 )     595  
Change in other assets and liabilities
    (66 )     (154 )
 
           
Cash provided by operating activities
    561       1,448  
 
           
 
               
Investing Activities
               
Capital expenditures
    (900 )     (526 )
Sale of property, plant and equipment
    36       34  
Acquisition of businesses, net of cash acquired
    (1,087 )     (32 )
Other — net
    (200 )     (131 )
 
           
Cash used by investing activities
    (2,151 )     (655 )
 
           
 
               
Financing Activities
               
Increase (decrease) in short and long-term debt — net
    1,564       (574 )
Payment of cash dividends
    (304 )     (251 )
Other — net
    97       24  
 
           
Cash provided (used) by financing activities
    1,357       (801 )
 
           
Effect of exchange rate changes on cash and cash equivalents
    8       155  
 
           
Increase (decrease) in cash and cash equivalents
  $ (225 )   $ 147  
 
           

 


 

July 20, 2011
Page 10
FOOTNOTES
1. Business Unit Summary
                                                 
            Three Months Ended                     Nine Months Ended          
            June 30,                     June 30,          
    (unaudited)     (unaudited)  
(in millions)   2011     2010     %     2011     2010     %  
 
                                   
Net Sales
                                               
Building efficiency
  $ 3,893     $ 3,217       21 %   $ 10,805     $ 9,208       17 %
Automotive experience
    5,118       4,213       21 %     14,927       12,482       20 %
Power solutions
    1,353       1,110       22 %     4,313       3,575       21 %
 
                                   
Net Sales
  $ 10,364     $ 8,540             $ 30,045     $ 25,265          
 
                                       
 
                                               
Segment Income (1)
                                               
Building efficiency
  $ 207     $ 190       9 %   $ 478     $ 398       20 %
Automotive experience
    142       171       -17 %     530       481       10 %
Power solutions
    163       135       21 %     558       450       24 %
 
                                   
Segment Income
  $ 512     $ 496             $ 1,566     $ 1,329          
 
                                       
 
                                               
Net financing charges
    (43 )     (39 )             (124 )     (117 )        
 
                                   
Income before income taxes
  $ 469     $ 457             $ 1,442     $ 1,212          
 
                                       
 
                                               
Net Sales
                                               
Products and systems
  $ 8,202     $ 6,798       21 %   $ 23,904     $ 20,116       19 %
Services
    2,162       1,742       24 %     6,141       5,149       19 %
 
                                   
 
  $ 10,364     $ 8,540             $ 30,045     $ 25,265          
 
                                       
 
                                               
Cost of Sales
                                               
Products and systems
  $ 6,954     $ 5,783       20 %   $ 20,455     $ 17,254       19 %
Services
    1,860       1,418       31 %     5,152       4,213       22 %
 
                                   
 
  $ 8,814     $ 7,201             $ 25,607     $ 21,467          
 
                                       
 
(1)   Management evaluates the performance of the segments based primarily on segment income, which represents income from continuing operations before income taxes and noncontrolling interests, excluding net financing charges.
Building efficiency — Provides facility systems and services including comfort, energy and security management for the non-residential buildings market and provides heating, ventilating, and air conditioning products and services for the residential and non-residential building markets.
Automotive experience — Designs and manufactures interior systems and products for passenger cars and light trucks, including vans, pick-up trucks and sport/crossover utility vehicles.
Power solutions — Services both automotive original equipment manufacturers and the battery aftermarket by providing advanced battery technology, coupled with systems engineering, marketing and service expertise.
2. Acquisitions
In the third quarter of fiscal 2011, the Company completed its acquisition of Keiper and Recaro Automotive, a leader in recliner system technology with engineering and manufacturing expertise in metals and mechanisms for automobile seats, based in Kaiserslautern, Germany. The Company paid approximately $496 million (excluding cash acquired of $46 million).
In the second quarter of fiscal 2011, the Company acquired the C. Rob. Hammerstein Group, a leading global supplier of high-quality metal seat structures, components and mechanisms based in Solingen, Germany. The Company paid approximately $581 million (excluding cash acquired of $52 million).
As a result of acquisitions, in the second and third quarter of fiscal 2011 the Company recorded non-recurring acquisition and related costs of $36 million and $29 million, respectively.
3. Debt and Financing Arrangements
In the second quarter of fiscal 2011, the Company replaced its $2.05 billion committed five-year credit facility, scheduled to mature in December 2011, with a $2.50 billion committed four-year credit facility scheduled to mature in February 2015. The facility is used to support the Company’s outstanding commercial paper.
Also in the second quarter of fiscal 2011, the Company issued $350 million aggregate principal amount of floating rate senior unsecured notes due in fiscal 2014, $450 million aggregate principal amount of 1.75% senior unsecured fixed rate notes due in fiscal 2014, $500 million aggregate principal amount of 4.25% senior unsecured fixed rate notes due in fiscal 2021 and $300 million aggregate principal amount of 5.70% senior unsecured fixed rate notes due in fiscal 2041. Net proceeds of $1.6 billion from the issue were used for general corporate purposes including the retirement of short-term debt.

 


 

July 20, 2011
Page 11
4. Income Taxes
The Company’s annual estimated effective tax rate for the year ending September 30, 2011 is 19.0 percent. There have been no discrete tax items recorded during fiscal 2011. The Company’s effective tax rate before consideration of discrete tax items for the third quarter ending June 30, 2010 was 18.0 percent. The effective tax rate inclusive of discrete tax items for the third quarter ending June 30, 2010 was 6.8 percent. The third quarter of fiscal 2010 reflects a $51 million tax benefit related to the resolution of tax audits and a valuation allowance release.
5. Earnings per Share
                                 
    Three Months Ended     Nine Months Ended  
    June 30     June 30  
    2011     2010     2011     2010  
    (unaudited)     (unaudited)  
Income Available to Common Shareholders
                               
 
                               
Basic income available to common shareholders
  $ 357     $ 418     $ 1,086     $ 1,042  
 
                               
Interest expense, net of tax
    1       1       2       4  
 
                               
 
                       
Diluted income available to common shareholders
  $ 358     $ 419     $ 1,088     $ 1,046  
 
                       
 
                               
Weighted Average Shares Outstanding
                               
Basic weighted average shares outstanding
    678.6       672.7       677.1       671.6  
Effect of dilutive securities:
                               
Stock options
    8.7       6.2       8.6       6.1  
Convertible senior notes
          0.1             0.1  
Equity units
    3.9       4.5       4.3       4.5  
 
                       
Diluted weighted average shares outstanding
    691.2       683.5       690.0       682.3