Johnson Controls 2012 Annual Report Download - page 31

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31
Automotive Experience
Net Sales
Segment Income (Loss)
for the Year Ended
for the Year Ended
September 30,
September 30,
(in millions)
2012
2011
Change
2012
2011
Change
North America
$
8,721
$
7,431
17%
$
487
$
419
16%
Europe
9,973
10,267
-3%
(52)
116
*
Asia
2,640
2,367
12%
368
245
50%
$
21,334
$
20,065
6%
$
803
$
780
3%
* Measure not meaningful
Net Sales:
The increase in North America was primarily due to higher volumes to major OEM customers ($967
million), the prior year negative impact of the Japan earthquake and related events ($263 million), and
incremental sales due to prior year business acquisitions ($129 million), partially offset by net unfavorable
pricing and commercial settlements ($69 million).
The decrease in Europe was primarily due to the unfavorable impact of foreign currency translation ($773
million), net unfavorable pricing and commercial settlements ($84 million), and lower volumes despite the
prior year negative impact of the Japan earthquake and related events ($32 million), partially offset by
incremental sales due to business acquisitions ($595 million).
The increase in Asia was primarily due to higher volumes and new customer awards including the prior
year negative impact of the Japan earthquake and related events ($182 million), incremental sales due to
prior year acquisitions ($144 million) and the favorable impact of foreign currency translation ($9 million),
partially offset by net unfavorable pricing and commercial settlements ($37 million) and the negative
impact of the flooding in Thailand and related events ($25 million).
Segment Income:
The increase in North America was primarily due to higher volumes ($199 million), the prior year negative
impact of the earthquake in Japan and related events ($61 million), lower purchasing costs ($49 million),
higher equity income ($4 million), lower engineering expenses ($3 million) and incremental operating
income of prior year acquisitions ($3 million), partially offset by higher operating costs ($126 million), net
unfavorable commercial settlements and pricing ($91 million), and higher selling, general and
administrative expenses ($34 million).
The decrease in Europe was primarily due to higher operating costs ($131 million), net unfavorable
commercial settlements and pricing ($88 million), lower volumes despite the prior year negative impact of
the earthquake in Japan and related events ($65 million), and higher selling, general and administrative
expenses ($40 million), partially offset by prior year costs related to business acquisitions ($64 million),
incremental operating income of prior year acquisitions ($42 million), lower purchasing costs ($26
million), lower engineering expenses ($23 million) and the favorable impact of foreign currency translation
($1 million).
The increase in Asia was primarily due to higher volumes including the prior year negative impact of the
earthquake in Japan and related events ($64 million), lower purchasing costs ($41 million), lower selling,
general and administrative expenses ($28 million), incremental operating income of prior year acquisitions
($19 million), lower operating costs ($14 million) and the favorable impact of foreign currency translation
($2 million), partially offset by net unfavorable commercial settlements and pricing ($34 million), the
negative impact of the flooding in Thailand and related events ($5 million), higher engineering expenses
($3 million) and lower equity income ($3 million).