Johnson Controls Inc., which makes building and automotive systems, lost $608 million in its fiscal first quarter and warned that it expects a loss for this quarter, citing soft demand from slumping automotive and construction markets.
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The numbers contrast with a profit of $235 million in the prior-year quarter.
Sales fell 23 percent to $7.34 billion from $9.48 billion in the year-ago period. Analysts expected sales of $8.48 billion in sales.
"While we are disappointed to report a loss in the quarter, we are addressing the challenges by improving our cost structure and preserving our liquidity," Stephen A. Roell, the company's chairman and chief executive, said in a statement.
The company said it expects to report a second-quarter loss similar to the first quarter's operating loss, but with better results at its building efficiency and Power Solutions businesses.
Late last year, Johnson Controls warned that it expected to post a loss for the quarter, blaming the steep drop in demand for automotive components. Most U.S.-based auto suppliers have seen their sales tumble this year as a result of severe production cutbacks at the automakers.
Johnson Controls said Friday that its automotive sales plunged 32 percent to $3.13 billion, citing the drops in demand from automakers in both North America and Europe.
The company's Power Solutions business, which makes vehicle batteries, also posted a sales drop of 32 percent to $1.12 billion, mainly as a result of lower lead prices and lower volumes.
