Correction to Johnson Controls CEO Succession Plan Story

By Cara Lombardo Features Dow Jones Newswires

Johnson Controls International PLC said Monday its Chief Operating Officer George Oliver will assume the chief executive post from Alex Molinaroli sooner than planned as the company looks to regain its footing following its merger with Tyco International PLC.

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Mr. Oliver, who had been Tyco's CEO, will take on the top role late next week rather than six months from now.

Johnson Controls said its board unanimously approved a plan for Mr. Molinaroli, who started with the company in 1983 and has been CEO since 2013, to leave his post and the board effective Sept. 1.

The news sent Johnson Control shares up more than 4% Monday morning.

In conjunction with the change, board member Jürgen Tinggren will become the board's lead independent director.

Mr. Tinggren said in prepared remarks that the board has been impressed by Mr. Oliver's handling of the integration and believes that "accelerating the transition provides clarity and continuity."

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Johnson Controls has been plagued by what analysts have called an "alarming" cash flow shortfall, leaving it particularly vulnerable to competition. The company also cut its 2017 earnings per share range by 6 cents and its organic growth guidance from 3% to 2%.

Mr. Molinaroli and other executives spent much of an earnings call last month attributing the company's choppy cash flow to strategic decisions, including the merger, and promising a quick turnaround.

The tie-up with Tyco, completed last year, gave the maker of power equipment and building controls a larger portfolio of commercial heating, ventilation, air conditioning, and fire and security offerings. Many investors have pushed for it to diversify and pivot away from its core automotive equipment segment faster.

Corrections & Amplifications

This item was corrected at 12:50 p.m. ET ebcause an earlier version misspelled Alex Molinaroli's last name as Molinari throughout the story.

Alex Molinaroli is the chief executive of Johnson Controls International PLC. "Johnson Controls Accelerates CEO Succession Plan," at 11:25 EDT, misspelled his last name as Molinari throughout the story. (Aug. 21, 2017)

(END) Dow Jones Newswires

August 21, 2017 13:04 ET (17:04 GMT)