Sunday, December 11, 2005
Johnson Controls to acquire York (August, 2005)
If you visit www.york.com now, you will see a footnote under its YORK logo saying "A Johnson Controls company". This $3.2 billion aquisition was announced in August and completed on Dec. 9th.
JCI controls sales in 2004 is $6.1B, 23% of the group sales. Controls operating income in 2004 is $284M, 22% of the total (from JCI 2004 Annual Report). York sales in 2004 is $4.5B with operating income of $128M (from York 2004 Annual Report, which is no longer available online).
To read through each company's Form 10K required by SEC is too much for me. But I like the Part I, which gives me a general picture of the companies and the markets.
Here are some of the quotes.
"Key factors in the award of installationcontracts include system and service quality, price, reputation, technology, application engineering capability and construction management expertise."
"Worldwide, approximately 40 percent of the Controls Group's sales are derived from installed control systems and approximately 60 percent originate from its service offerings. Also,approximately 35 percent of segment revenues are derived from the new construction market while 65 percent are derived from the existing buildings market."
"The services market is highly fragmented, with no one company being dominant.Sales of these services are largely dependent upon numerous individual contracts with commercial businesses worldwide and various departments and agencies of the U.S. Federal government."
-JCI
"Products compete on thebasis of product design, reliability, quality, price, efficiency, acoustics, and post-installation service.Architects and engineers play an important part in determining which manufacturer's products will bespecified and ultimately used in an application."
"The global equipment markets are driven by new construction and replacement sales in almost equal proportions."
"Our Global Applied service business competes in a very large but fragmented market, where individualmarket shares are typically in the single digit range. Most of our competition consists of thousands ofindependent mechanical contracting companies delivering services and purchased products. Other competitors include manufacturers such as Trane and Carrier and some non-manufacturing national companies such as Johnson Controls."
-YORK
JCI controls sales in 2004 is $6.1B, 23% of the group sales. Controls operating income in 2004 is $284M, 22% of the total (from JCI 2004 Annual Report). York sales in 2004 is $4.5B with operating income of $128M (from York 2004 Annual Report, which is no longer available online).
To read through each company's Form 10K required by SEC is too much for me. But I like the Part I, which gives me a general picture of the companies and the markets.
Here are some of the quotes.
"Key factors in the award of installationcontracts include system and service quality, price, reputation, technology, application engineering capability and construction management expertise."
"Worldwide, approximately 40 percent of the Controls Group's sales are derived from installed control systems and approximately 60 percent originate from its service offerings. Also,approximately 35 percent of segment revenues are derived from the new construction market while 65 percent are derived from the existing buildings market."
"The services market is highly fragmented, with no one company being dominant.Sales of these services are largely dependent upon numerous individual contracts with commercial businesses worldwide and various departments and agencies of the U.S. Federal government."
-JCI
"Products compete on thebasis of product design, reliability, quality, price, efficiency, acoustics, and post-installation service.Architects and engineers play an important part in determining which manufacturer's products will bespecified and ultimately used in an application."
"The global equipment markets are driven by new construction and replacement sales in almost equal proportions."
"Our Global Applied service business competes in a very large but fragmented market, where individualmarket shares are typically in the single digit range. Most of our competition consists of thousands ofindependent mechanical contracting companies delivering services and purchased products. Other competitors include manufacturers such as Trane and Carrier and some non-manufacturing national companies such as Johnson Controls."
-YORK
# posted by comfortpoint @ 10:59 PM 
