Diversified auto parts supplier Johnson Controls Inc. said Thursday that its quarterly earnings rose 9.3 percent, but the company lowered its business outlook for the coming year.
In a statement, Johnson Controls said its fiscal first quarter net income was $410 million, or 60 cents a share, up from $375 million, or 55 cents a share, a year ago.
Revenue rose 9 percent to $10.4 billion.
"Our growth in the first (fiscal) quarter is evidence of continued market share gains as we sustainably outperform our underlying industries," CEO Stephen Roell said in a statement. "We took steps to improve our execution and added resources to improve quality and productivity. At the same time, we continued to invest in order to support our global growth and margin expansion opportunities."
The maker of auto interiors and batteries and building efficiency systems also expects second fiscal quarter earnings at 52 cents to 54 cents a share, way below analysts estimates of 70 cents a share. Johnson Controls expects fiscal year profit of $2.70 to $2.85 a share, down from its earlier forecast of $2.85 to $3 a share.
The company is assuming an indefinite shutdown of its Shanghai battery plant even as talks with the Chinese government continue, it said in a statement.
The plant came under the spotlight late last year after children in Kangqiao area of Shanghai were found to have lead poisoning during medical checks. Johnson Controls halted production at the plant in September because its annual lead quota was reached but expected to restart production in January 2012.
The quarter earnings of 60 cents a share disappointed Wall Street. Analysts had expected earnings of 62 cents a share on revenue of $10.52 billion, according to Thomson Reuters.
Johnson Controls ranks No. 7 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $16.6 billion in 2010. Europe accounted for 49 percent of that total.