JCI’s New Focus & CEO

Last year it was announced that George Oliver was planning to retire and JCI had started a succession plan to find a new CEO.  This also follows some moves they say are to more clearly focus on commercial buildings.  Here is the related quote from the current Annual Meeting notice, “We refocused our portfolio with our decision to divest nearly 20% of our non-core assets, including the sale of our Air Distribution Technologies business and entering into an agreement to sell our Residential & Light Commercial HVAC business. This marks a pivotal step in our journey towards becoming a dedicated provider of comprehensive solutions for commercial buildings. Focusing our resources and expertise on our core strengths better positions us to innovate, deliver superior value to our clients, and drive sustainable growth. This strategic realignment enhances our operational efficiency while also reinforcing our commitment to excellence in commercial buildings.”

If you can read through that current version of corporate lingo – it’s more or less saying let’s try something new – like going back to where JCI was before corp. raider Victor Posner’s 1980’s threats forced us to diversify into auto seats, blow molded plastic bottles, residential AC units, louvers, even the Scotch I brought to a luncheon awhile back, and others.  For a while our stock was actually grouped with the automotive industries (due to Batteries and Auto Interiors).  It looks like JCI is again focusing on the same customer base we served when many of us first joined the company.  This is the customer base that JCI served best for most of its first 100 years, and built much of our reputation in.  Hopefully, there is still enough understanding of that market segment left within today’s JCI, to transition back to that focus.

Early in February Johnson Controls announced that the next CEO would be Joakim Weidemanis.  He is 56 yrs old, and most recently from Danaher Corp.   In March 2025 he will be replacing George Oliver, who will remain as an advisor for the remainder of the year.  (if you have further curiosity – Google his name and prior company).  We wish him well as he works into his new leadership position.

Hopefully, he and JCI’s inherent understanding of this new (prior) market focus will have a successful transition to a successful future.

Regards,

Gene