Johnson Controls profit beats estimates
(Reuters) -- Johnson Controls Inc. posted a better-than-expected quarterly profit, driven by higher sales of its car seats in North America and a lower expected tax bill.
Sales in the company's automotive experience unit, which makes car seats, floor consoles and overhead systems, rose 3 percent to $5.3 billion in the fourth quarter. The business accounted for about half of the company's total revenue, it said in a statement today.
Johnson Controls supplies parts to automakers such as Toyota Motor Corp. and General Motors, who have benefited from increasing vehicle sales in North America.
The U.S. recorded its highest third-quarter auto sales in eight years, with sales in September rising about 9 percent, according to research firm Autodata.
Motor vehicles and parts production will rise 5 percent in 2015 in the United States, according to the Manufacturers' Alliance for Productivity and Innovation, an independent manufacturing data providing firm.
Net income attributable to Johnson Controls rose to $309 million, or 46 cents per share, in the quarter ended Sept. 30 from $105 million, or 15 cents per share, a year earlier.
Excluding items, the company earned $1.04 per share.
Revenue rose 2.6 percent to $10.98 billion.
Analysts on average had expected a profit of $1.01 per share and revenue of $11.18 billion, according to Thomson Reuters I/B/E/S.
Johnson Controls set aside $94 million for tax payments, down nearly 80 percent from a year earlier.
Johnson Controls ranks No. 8 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $23.4 billion in 2013. Europe accounted for 42 percent of that total.