JCI lowers earnings outlook on soft global market, weak euro
(Bloomberg) -- Johnson Controls Inc., which generates more than half of its sales in Europe, said net income in the fiscal quarter that ended June 30 rose 17 percent to $417 million from $357 million.
Excluding $52 million in pretax restructuring costs and a one-time tax benefit of $22 million, profit was 64 cents a share. The average estimate of 28 analysts surveyed by Bloomberg was for a profit of 66 cents a share.
Revenue in the quarter rose 2 percent to $10.6 billion, compared with an average estimate of $10.9 billion.
The company's lowered its forecast for profit in the fourth quarter because of "softness" in its "global markets" and a lower euro.
Sales and profit in the third quarter, which ended June 30, missed analysts' estimates.
Profit in the three months ended Sept. 30 will be in a range of unchanged to 5 percent higher, the company said Thursday, down from a gain of about 25 percent, a forecast it gave April 20.
The average estimate of 18 analysts surveyed by Bloomberg was for profit to increase 21 percent.
"While we saw a significant improvement in profitability in the third quarter, sluggish demand in some of our key markets along with a much weaker euro resulted in lower top line growth than we expected," CEO Stephen Roell said in a statement.
Sales in the auto-parts unit rose 6.8 percent to $5.46 billion, helped by higher auto production in North America and Asia. Profit for the unit, which makes cockpits, seats and instrument panels, rose 42 percent to $202 million.
In automotive batteries, Johnson Control's smallest and most-profitable business, sales fell 2.7 percent to $1.32 billion; profit from that unit fell 8.6 percent to $149 million. Johnson Controls said consumer demand for replacement batteries in North America and batteries for new cars in Europe was lower than it expected.
Johnson Controls ranks No. 7 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $21.3 billion in 2011. Europe accounted for 51 percent of that total.Contact Automotive News