Johnson Controls Inc. predicted that its revenue for the new fiscal year that started Oct. 1 would exceed analysts' expectations, aided by the high demand for auto batteries. Johnson Controls said it would raise capital spending to expand growth.
Johnson Controls’ three businesses (building efficiency, auto interiors and batteries) are expected to benefit from the economic recovery in markets like China and the Middle East. The company, world's eighth largest auto supplier in terms of revenue, also expects that this rebound in non-residential construction in such markets will continue in 2011.
The US auto production is likely to increase moderately, would be flat in Europe, and would rise in China at a slightly slower rate.
It forecast that China's vehicle production would hit 14.1 million in 2011, higher than North America's 12.3 million but below Europe's 17.6 million figure. This company predicts that it would have a revenue of $37 billion for its new fiscal year, which started Oct. 1, a 9% increase from estimated fiscal 2010 sales.
Thomson Reuters I/B/E/S said that analysts on average expect annual revenue of $36.27 billion. The supplier also stated that revenue in the automotive interiors segment, which builds car seats, will increase by about 5%.
It estimates a sales gain of 8% to 10% for the building efficiency segment, and expects a 10% to 15% growth in its battery business, partly because of demand in emerging markets. [via autonews - sub. required]