The quarterly earnings of diversified auto parts supplier Johnson Controls Inc. increased by 9.3% but it had lowered its outlook for the approaching year. Through a statement, Johnson Controls revealed that it had a net income of $410 million, or 60 cents a share, in the fiscal first quarter. This is higher than the previous year when it posted $375 million, or 55 cents a share.
CEO Stephen Roell said that revenue increased by 9% to $10.4 billion. Its growth in the first (fiscal) quarter is “evidence of continued market share gains” as it sustainably does better than its underlying industries.
Roell added that steps have been taken to have a better execution and resources were added to boost quality and productivity. At the same time, the company continues to invest so that it could support its worldwide growth and margin expansion opportunities. Johnson Controls, which manufactures auto interiors and batteries as well as builds efficiency systems, estimates that its second fiscal quarter earnings will be at 52 cents to 54 cents a share.
This is much lower than the 70 cents a share that analysts estimated. Johnson Controls predicts a fiscal year profit of $2.70 to $2.85 a share. This is a decline from its previous forecast of $2.85 to $3 a share.
The company is expecting that the Shanghai battery plant will be shut down indefinitely as talks with the Chinese government continue. This plant became controversial last year over reports that the children in Kangqiao area of Shanghai suffered from lead poisoning. This was discovered during medical check-ups. This plant had shut down last September since its annual lead quota had already been reached. It expected to resume production in January 2012.