(JCI) and Lear Corp.
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[PRNewswire] Johnson Controls Inc (NYSE:JCI)(TREND ANALYSIS) a global multi-industrial company, has authorized a regular quarterly cash dividend of $0.26 per common share. Johnson Controls will also keep its unit that makes automotive batteries. Johnson Controls Inc (JCI) has a price to earnings ratio of 20.52 versus Consumer Goods sector average of 14.78. The company continues to expect the sale of its GWS business to CBRE Group Inc.
Analysts had estimated for earnings of 91 cents per share on revenue of $9.58 billion for the latest quarter. The company reported $0.73 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.74 by $0.01. Analysts’ estimates typically exclude special items. JCI does not provide details on its molding, but in 2008, when it took over manufacturing from former bankrupt supplier Plastech Engineered Products Inc., it had an estimated $1.2 billion plastics business, most of it in injection molding. The Building Efficiency business is engaged in designing, producing, marketing and installing heating, ventilating and air conditioning (HVAC) systems, building management systems, controls, security and mechanical equipment. Analysts expect the company to report earnings of $1.01 per share for the quarter. In 12 months, the segment will operate as an independent, publicly traded company with Bruce McDonald as CEO; he is now vice chairman and vice president of the company.
“Our automotive and power businesses delivered significant margin improvements, while building efficiency saw higher revenues, backlog and orders”, Alex Molinaroli, Johnson Controls chairman and CEO said in a statement. The Automotive Experience business is an automotive supplier, providing interior systems through the Companys design and engineering expertise.
In preparation for the spinoff, the company said it would initiate a cost-savings program.
The Milwaukee-based company said it had net income of 27 cents per share.
The bulk of the company’s plastics operations are in the Automotive Experience division. Excluding the impact of foreign exchange, sales increased 5 percent. “The rest of the company is a higher-margin business, but that’s been diluted” by the interiors unit. The result topped expectations for a bigger decline to $5.21 billion. The company has been rated an average of 2.17 by 18 Wall Street Analysts.
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CI is trading at $46.65, up $0.31 or 0.67 percent on a volume of 927,055 shares LEA is trading at $103.47, up $4.48 or 4.53 percent on a volume of 632,045 shares.
