Johnson Controls Inc. posted a 3-percent surge in revenues in the quarter ended June 30, 2014 to $10.8 billion, thanks to growing demand for its car seats. The supplier’s automotive business has been booming, thanks to strong demand in China, which accounted for around 32 percent of the division's $5.7 billion in revenue in the period.
However, the company saw its revenues from its cooling and heating systems business drop 4 percent in the third quarter, no thanks to lower demand from the Middle East and North America.
Johnson Controls said it expected its cooling and heating systems business to return to growth in the current quarter ending Sept. 30, 2014, bannered by a low single-digit revenue gain.
Chief Executive Alex Molinaroli said in a statement that the overall non-residential heating ventilation and air conditioning markets remain challenged, although the supplier is beginning to experience more demand in certain vertical markets.
Johnson Controls expects earnings of $1.00-$1.02 per share for the current quarter. According to Thomson Reuters I/B/E/S, analysts on average were forecasting $1.01 per share of the three months ended Sept. 30, 14. Excluding items, Johnson Controls posted 84 cents per share in earnings in the third quarter ended June 30, 2014.