Johnson Controls Earnings Up 33 Percent

Johnson Controls Inc., a supplier to the automotive and construction industries, on Thursday said its fiscal third quarter profit rose 33 percent, as strength in its building efficiency business offset sluggish demand in its automotive business. Quarterly earnings rose to a record $338 million, or $1.71 per share, compared to $255 million, or $1.31 per share during the same period last year.

From AFX News Limited

MILWAUKEE — Johnson Controls Inc., a supplier to the automotive and construction industries, on Thursday said its fiscal third quarter profit rose 33 percent, as strength in its building efficiency business offset sluggish demand in its automotive business.

Quarterly earnings rose to a record $338 million, or $1.71 per share, compared to $255 million, or $1.31 per share during the same period last year.

The results included a restructuring charge of $137 million and a tax benefit of $141 million, which combined to add 2 cents per share to quarterly earnings.

Analysts polled by Thomson Financial forecast a profit of $1.68 per share.

Revenue grew by 19 percent to $8.4 billion from $7.1 billion in the same period a year ago. Analysts forecast revenue of $8.43 billion.

The company said building efficiency sales doubled to $2.8 billion, driven by additional revenue from last year’s acquisition of York International Corp. and double-digit growth in the North American services market and global facility management. The unit’s control systems monitor temperatures and detect fires in non-residential buildings.

Revenue at Johnson Controls’ automotive interiors business fell 6.2 percent to $4.7 billion, compared to $5 billion a year ago, reflecting the effect of sluggish automobile sales at Ford and General Motors. The company’s power solutions business saw revenue rise 33 percent to $886 million from $665 million, mostly on the acquisition of Delphi Corp.’s battery business.

Johnson Controls narrowed its full-year earnings forecast to a range of $5.25 to $5.30 per share from a previously announced range of $5.25 to $5.35, again citing slow auto sales. It forecast fourth quarter earnings of between $1.86 and $1.91 per share. Analysts presently expect $1.95 for the fourth quarter and $5.29 for the full year.

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