Johnson Controls International PLC JCI, +3.05% said Wednesday it will take a $240 million charge, most of which will be recorded in 2021, as a result of cost-cutting actions aimed at generating annual savings of $300 million by the end of fiscal 2023. The building products and transportation systems company said the cash impact of the cost-cutting actions is expected to be $200 million. As a result of the cost cuts, the company raised its fiscal 2021 adjusted earnings-per-share guidance range to $2.50 to $2.60 from $2.45 to $2.55; the FactSet consensus is $2.53. “After four years of significant integration and transformation-related activities, today’s announcement builds upon the success of those actions and represents a critical step forward in further enhancing profitability at Johnson Controls,” said Chief Executive George Oliver. The stock, which was still inactive in premarket trading, has rallied 18.5% over the past three months, while the S&P 500 SPX, -0.71% has gained 9.0%.
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