Johnson Controls discloses weak internal control in financial reporting

Dec 14 (Reuters) - Building products provider Johnson Controls has identified a weakness in its internal control over financial reporting due to a cyber incident disclosed in September, it said in a regulatory filing on Thursday.

Measures to address the issue will result in additional costs, the Ireland-based company said, just days after reporting a 4 cent hit to its fourth-quarter profit. The company expects another 2 cent hit in the first quarter.

"The overall impact of the cybersecurity incident in fiscal 2024 is not expected to be material to net income, net of insurance recoveries," Johnson Controls added.

Global companies have suffered from a wave of cyberattacks over the last few years. The cybersecurity incident at Johnson Controls had disrupted portions of its internal information technology infrastructure and applications and subsequently delaying its quarterly results.

Earlier this week, the company forecast fiscal 2024 adjusted profit below estimates and missed expectations for fourth-quarter earnings, pressured by weakness in the global residential construction market.

The company's shares were up 3.4% on Thursday amid a rise in broader markets. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)