The quarterly profit of Johnson Controls Inc., largest U.S.-based auto parts supplier, fell by 17%. It also expects to suffer even more declines. Johnson Controls, which manufactures car interiors and batteries, said that the declines are due to the weakness in Europe. Thomson Reuters said that Johnson Controls is expected to make a profit of 40 cents to 42 cents per share for the present quarter that ends March 31, below analysts' expectations of 51 cents.
In a statement, Johnson Controls said that its forecast reflects the present status of the European automotive production environment as well as that of short-term delays in flexing labor in the region. Johnson Controls is keeping ts full-year outlook of higher profit and sales. The shares of Johnson Controls fell 3% to close the day at $31.
In October, the company said that weaker business in Europe would significantly reduce its profit in the first half. The restructuring actions started in the latter part of 2012 are predicted to increase profit in the second half. For the first fiscal quarter that ended Dec. 31, the net income decreased to $354 million, or 52 cents per share, from $424 million, or 62 cents per share, the previous year. Meanwhile, revenue had a marginal increase to $10.42 billion. On average, analysts expected earnings of 51 cents per share and revenue of $10.26 billion.