Johnson Controls Forecasts Strong Revenue Growth

Johnson Controls Inc. on Tuesday forecast stronger-than-expected sales growth for its newly started fiscal year and said it expects to complete the spinoff of its automotive business by next October.

Johnson forecast sales of $38.6 billion for its fiscal year ending next September. Analysts polled by Thomson Reuters had forecast $37.3 billion in revenue.

Johnson also projected profit of $3.70 to $3.90 a share, excluding separation costs and special items, while analysts had forecast $3.85 a share.

Johnson gave the forecasts ahead of an analyst presentation in New York City.

Milwaukee-based Johnson, which makes everything from auto parts to heating, ventilation and air-conditioning equipment, has been pivoting away from low-margin automotive markets and toward more profitable industrial businesses.

As part of that shift, the company is in the process of spinning off the remaining parts of its automotive-seat business—its largest unit and the world's biggest maker of automotive seating. The new entity will include the company's car-seating line as well as its share of an auto-interiors venture with China's Yanfeng Automotive Trim Systems Co.

Johnson said the spinoff is "progressing as planned," with a targeted completion date of Oct. 3.

For the current fiscal year, Johnson expects its automotive sales to fall by 2% to 3% as production growth in China and North America is offset by a slight decline in Europe.

Johnson expects sales in its building efficiency business to jump by nearly 40% in the new fiscal year due to its new air-conditioning venture with Hitachi Ltd. The company expects its power solutions sales to grow up to 11% on broad-based volume growth.

Write to Chelsey Dulaney at [e-mail]

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(END) Dow Jones Newswires

December 01, 2015 08:15 ET (13:15 GMT)

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