CHICAGO -- Automotive interiors maker Johnson Controls Inc. on Tuesday said it expects higher second-quarter earnings and confirmed its guidance for the full year.
It forecast second-quarter income from continuing operations of 85 cents, up from 76 cents a year earlier. The company credited sales and earnings growth by both the automotive and controls businesses.
Analysts' estimates for Johnson Controls' second quarter range from 75 cents to 91 cents, for an average of 84 cents, according to Reuters Estimates.
The company also confirmed its previous full year guidance for sales growth of 8 percent to 10 percent above the pro forma 2004 amount of $25.36 billion. Full-year operating income from continuing operations is projected to rise 10 percent to 12 percent over the prior year's pro forma of $1.22 billion.
The proforma amounts exclude results from the company's engine electronics business, which was sold on Feb. 28, and the World Services business, whose sale is expected to be completed later this month.
Johnson Controls also said it expects second-quarter restructuring costs of $150 million pre-tax as it accelerates its cost-reduction efforts.
The company said those efforts, primarily for factory consolidation and layoffs, are necessary to offset "challenging" conditions in the automotive industry.
"We believe that the benefits of these actions and our sustained ability to deliver innovative technology, together with the diversification of our businesses, geographic markets and customer base, will enable us to sustain our record for growth," said Chairman and Chief Executive Officer John Barth in a release.