#1. TOTAL REVENUES: Total Revenues could decline to $20 billion by FY'21, down from $24 billion in FY'19, if sales of building products & solutions decline.This assumes that the company's revenues decline by about 17% this year and by 2% over FY'21, on account of weaker demand.With the global economy going into recession, the global real estate market is expected to take a hit in 2020, both residential and commercial. Johnson Controls provides heating, ventilation, and air-conditioning systems for buildings. With the real estate market weakened, Johnson Controls will likely see lower shipments, thereby putting pressure on the company’s top line in 2020.Home sales are
expected to decline in mid-single-digits to 5.1 million in 2020, while prices are expected to drop by annual rate of 0.4% over the next two years. Johnson Controls' Services segment could also see decline, amid lower demand for building products.
The decline seen in 2019 in the below charts can be attributed to the company's divestiture of its power business, which garnered $8.0, $7.3, and $6.7 billion in 2018, 2017, and 2016, respectively.
Total Revenue = A + B
Products & Systems (A)