Johnson Controls Inc. posted a 17-percent year-on-year increase in net income for the fiscal quarter that ended June 30, 2012, to $417 million. Johnson Controls posted a per-share profit of 64 cents following the exclusion of $52 million in pretax restructuring costs and a one-time tax benefit of $22 million.
The company’s per-share profit is a tad lower than the 64 cents per-share profit average estimate of 28 analysts surveyed by Bloomberg. Johnson Controls posted a 2-percent increase in revenues for the fiscal quarter ended June 30, 2012, to $10.6 billion, compared with an average estimate of $10.9 billion.
The company lowered its profit forecast for the fiscal fourth quarter ending Sept. 30, 2012, due to "softness" in its "global markets" and a lower euro. Johnson Controls had forecasted a 25-percent growth in profit for the fiscal fourth quarter ending Sept. 30, 2012, but changed its predictions to a range of unchanged to a 5-percent increase.
The average estimate of 18 analysts surveyed by Bloomberg, meanwhile, placed the profit increase at 1 percent. Johnson Controls chief executive Stephen Roell said that despite the significant improvement in profitability in the third quarter, the company failed to beat the growth forecast due to sluggish demand in some of its key markets and a much weaker euro.
The company’s auto-parts unit posted a 6.8-percent increase in sales to $5.46 billion, thanks to higher auto production in North America and Asia. The unit logged a 42-percent increase in profit to $202 million. Johnson Controls’ automotive batteries unit posted a 2.7-percent drop in sales to $1.32 billion, resulting in an 8.6-percent decline in profit to $149 million.
Johnson Controls blamed the sales and profit decline to lower consumer demand for replacement batteries in North America and batteries for new cars in Europe.
Johnson Controls traces its roots to Warren S. Johnson, a professor at the State Normal School in Whitewater, Wisconsin. Johnson invented the first electric room thermostat in 1883. In 1885, he and a group of Milwaukee investors incorporated the Johnson Electric Service Company, which engage in the manufacturing, installation and servicing of automatic temperature regulation systems on buildings. Johnson died in 1911.
In 1974, Johnson Electric Service was renamed as Johnson Controls. In 1978, Johnson Controls acquired battery company Globe-Union and in 1985, Johnson Controls acquired Hoover Universal and Ferro Manufacturing, both automotive seating companies.
Just recently at the 2012 Geneva Motor Show, Johnson Controls showed off its prowess in making batteries -- ranging from Start-Stop batteries to the prismatic lithium-ion cells used on hybrid and electric cars.