With the automotive and buildings markets recovering, Johnson Controls Inc.’s sales were up at a record high in the first fiscal quarter, with revenue rising 13% over the same period a year ago. Its revenue climbed to $9.5 billion, compared with $8.4 billion during its first quarter last year.
The company posted a 7% increase in net income to $375 million or 55 cents a share, compared with a net income of $350 million during the same quarter last year. JCI's automotive business unit recorded a 12% increase in revenue in the quarter to $4.6 billion, compared with $4.1 billion last year.
This increase is attributed to higher production levels as well as the launch of new automotive seating and interiors programs. The automotive business segment had an income of $177 million in the current quarter, a 46% increase from $121 million during the same quarter last year.
Meanwhile, the segment's revenue rose by 9% in North America, where automotive production in the quarter climbed by 7%. Revenue had gone up by 13% in Europe, where production increased 6%. Asia revenue was up 49% and China revenue up 37%, to $1 billion.
JCI has 24 joint ventures in China that operate 47 plants. JCI also holds a 45% share of the Chinese auto seating market.
It’s expected that the planned acquisitions of German suppliers C. Rob. Hammerstein Group and Keiper/Recaro will contribute about $700 million in revenue next year. The acquisitions in 2012 are predicted to generate $1.4 billion.