Johnson Controls logs 30% net profit rise in 1st fiscal quarter

Article by Christian A., on January 26, 2014

Johnson Controls Inc. posted 30-percent hike in net profit for its first fiscal quarter to $469 million or 69 cents per share. A year ago, net profit was $359 million, or 52 cents per share. Revenue at the supplier surged 5 percent to $10.91 billion, exceeding expectations of analysts surveyed by Thomson Reuters I/B/E/S of $10.73 billion.

"The significant improvement in profitability resulted from our focus on execution and cost discipline,” chief executive Alex Molinaroli said in a statement. He added that Johnson Controls also benefitted from the higher levels of global automotive production. Johnson Controls produces car interiors, seating systems, and batteries.

A larger part of Johnson Controls' overall revenue came from its automotive segment, which revenue surged 10 percent to $5.76 billion thanks to stronger demand for vehicles around the world. Auto industry production jumped 10 percent in North America, 2 percent in Europe and 14 percent in China, Johnson Controls said.

The supplier said that automotive revenue in China climbed 33 percent in the quarter to $1.9 billion while income rose 130 percent to $232 million. Earlier this month, Johnson Controls sold its automotive electronics business to Visteon for $265 million in cash. Johnson Controls posted a 6 percent rise in battery sales $1.77 billion and a 12 percent rise in battery income to $308 million.

The supply expects to post a net profit of between $3.15 and $3.30 per share for 2014 with free cash flow of $1.6 billion, lower that the Wall Street forecast of $3.31 per share. Johnson Controls said expects to post a fiscal second quarter earnings of 64 to 66 cents per share. Thomson Reuters I/B/E/S poll of analysts shows average expectation of 67 cents per share. The supplier increased its quarterly dividend in the first fiscal quarter by 16 percent and completed $1.2 billion in share repurchases.

If you liked the article, share on:

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries