Johnson Controls quarterly earnings rise 27 pct

Wed Apr 16, 2008 11:07pm BST
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By David Bailey

DETROIT (Reuters) - Diversified manufacturer Johnson Controls Inc (JCI.N: Quote, Profile, Research) said on Wednesday quarterly earnings rose 27 percent as revenue increased across its building controls, batteries and automotive parts businesses.

Johnson Controls, whose shares rose more than 4 percent, also backed its fiscal-year outlook for earnings and raised its revenue forecast even as the U.S. auto industry undergoes a sharp downturn.

"We see the solid quarter and the reaffirmed guidance as positive given the difficult environment," Goldman Sachs analyst Patrick Archambault said in a note to clients.

Calyon Securities analyst Mark Warnsman said in a note the results demonstrated the company's ability to largely avoid or offset a weak commercial real estate market, lower U.S. auto production and higher lead prices.

Net income rose to $289 million, or 48 cents per share, in its second quarter from $228 million, or 38 cents per share, a year earlier. Revenue rose 10.8 percent to $9.41 billion.

The earnings-per-share result exceeded the average analyst forecast by a penny and revenue exceeded the average forecast of $9.36 billion, according to Reuters Estimates.

Milwaukee-based Johnson Controls made acquisitions in its building controls and batteries businesses in recent years to reduce the impact from the struggles of U.S.-based carmakers in North America. It also restructured its auto parts business.

Revenue from the auto interiors and seating business rose 2 percent to $4.6 billion in the quarter. Increased revenue in Europe and Asia/Pacific more than offset a drop in North America related to industry light vehicle production declines.  Continued...

 
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