MILWAUKEE -- For the first quarter of fiscal 2010, Johnson Controls (JCI) reported a double-digit increase in sales as well as record quarterly earnings. The company also increased its estimate for 2010 earnings.

Income from business segments in the 2010 first quarter totaled $406 million compared with a loss of $310 million (or a loss of $48 million excluding non-recurring items) in the fiscal 2009 quarter. Net income was $350 million versus a year-ago loss of $608 million. Earnings per diluted share were 52 cents in the first quarter of 2010 versus a loss of $1.02 last year.

The 2010 quarter includes a non-recurring tax benefit of $62 million, or 9 cents per diluted share. Excluding this non-recurring item as well as the non-recurring items in the 2009 first quarter, net income was a record $288 million in the first quarter of 2010 versus a loss of $79 million in 2009. Earnings per diluted share excluding the items were a record 43 cents in the 2010 quarter compared with a loss of 13 cents in the first quarter of 2009. The company said it believes that using the adjusted numbers provides a more meaningful comparison of its underlying operating performance.

"We achieved record results in the first quarter despite what is still a very challenging economic environment in all of our markets. We benefited from higher sales supported by the cost improvement initiatives we took over the past year," said Stephen Roell, Johnson Controls chairman and chief executive officer.

Automotive Experience sales in the quarter increased 31 percent to $4.1 billion versus $3.1 billion last year due primarily to higher production volumes in Europe and North America. Excluding the impact of currency, sales were up 24 percent. North American revenues increased 14 percent while European sales were up 47 percent. Sales in China, which are mostly generated through unconsolidated joint ventures, more than doubled. Johnson Controls has a 45 percent share of the Chinese auto seating market.

Automotive Experience reported segment income of $121 million in the current quarter, compared with a loss of $219 million (excluding non-recurring items) last year due to higher volumes, operational efficiencies and higher profitability of its automotive joint ventures.

Power Solutions sales in the first quarter of 2010 increased 15 percent to $1.3 billion from $1.1 billion reflecting higher aftermarket and original equipment unit shipments. Aftermarket unit sales increased 9 percent due to new customers and improved markets. Higher global automotive production and incremental volume from customers resulted in a 19 percent increase in original equipment battery sales.

Power Solutions segment income was $181 million versus $40 million in the first quarter of 2009, which included a negative $50 million inventory valuation charge. The higher 2010 income is the result of the higher volumes, improved capacity utilization and operational efficiencies.

Johnson Controls said that in the first quarter it launched production of lithium-ion battery systems for the BMW 7-Series hybrid vehicle and was awarded a production contract to supply lithium-ion hybrid batteries for Ford's 2010 all-electric Transit van.

Johnson Controls updated its assumptions and earnings guidance for 2010. 2010 revenues are now forecast to increase 16 percent to $33 billion versus the previous forecast of $31 billion. Earnings per share for the 2010 fiscal year are now expected to total $1.70 - $1.75 per diluted share compared to earlier guidance of $1.35 - $1.45 per diluted share. The company's expected underlying tax rate for 2010 is now 18 percent versus the previous estimate of 20 percent. Automotive production assumption in North America is now 10.3 million vehicles compared to an earlier estimate of 9.8 million

"Our markets are still well below their historic levels and the global economic environment remains challenging. We believe there will be meaningful improvements in our markets by the end of the fiscal year and we are well positioned to take advantage of the growth opportunities that will arise," Roell said. "We will continue to invest in our growth strategies and to further align with the global megatrends for improved energy efficiency and sustainability."