Johnson Controls says quarterly net income rose 3%
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DETROIT (Reuters) -- Johnson Controls Inc., which makes batteries and interiors for the auto industry, today reported a 3 percent gain in fiscal second-quarter earnings, helped by new launches of seating and interior programs.
The company, in a statement, said it posted net income of $364 million or 53 cents per share, exactly in line with analyst expectations. A year earlier, the auto parts supplier reported earnings of $354 million or 51 cents per share.
Sales rose about 4 percent to $10.6 billion.
The automotive interiors business posted a profit of $236 million during the quarter, a 4 percent decline from last year. Total revenue increased 7 percent to $5.6 billion.
The second quarter was hit by costs associated with the opening of a metals plant as well as operating inefficiencies in some programs launched in Europe over the past two years.
The company said it has taken steps to address those problems, which should lead to improved financial results in the second half of the year. Higher automotive production in North America, the reduction of battery imports to China and higher prices should also boost results.
For the first half of its fiscal year, Johnson Controls said it posted net income of $774 million, or $1.12 a share, up from earnings of $729 million, or $1.06 a share, during the same period a year ago. Total revenue grew to $20.98 billion from $19.68 billion a year ago.
Automotive News staff contributed to this report.
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