• JCI chair & CEO, George Oliver.
    JCI chair & CEO, George Oliver.

Johnson Controls International (JCI) is in the early stages of simplifying its business portfolio which could include the sale of its HVAC assets for an estimated $US5 billion.

During an earnings call for fiscal first quarter 2024, JCI chair & CEO, George Oliver, said the company’s value proposition is making buildings smarter, healthier and more sustainable.

“The management team continues to simplify and transform the company into a comprehensive solutions provider for commercial buildings,” Oliver said.

“As part of the continuous evaluation of our portfolio, we are in the early stages of pursuing strategic alternatives of our non-commercial businesses, in line with our objective to maximize value to our shareholders."

Any moves to unload its HVAC portfolio would include York International which the company acquired in 2005.

It would also include Air Distribution Technologies as well as the company’s stake in its Hitachi Joint Venture.

Oliver said the potential sale would represent less than 25 per cent of JCI’s business portfolio.

Sales in the quarter of $6.1 billion were flat compared to the prior year on an as reported basis, declining one per cent organically.

The results for JCI’s building solutions business in the Asia Pacific plummeted.

Sales in the quarter reached $507 million, a 22 per cent drop compared to the previous year..

Orders in the quarter declined 31 per cent year-over-year.

JCI attributed the drop to a serious decline in China.