Johnson Controls Inc. reported record sales in its first fiscal quarter, with revenue up 13 percent over the same period a year ago, reflecting the recovery in the automotive and buildings markets.
Revenue for the Milwaukee-based supplier increased to $9.5 billion, compared with $8.4 billion during its first quarter last year.
Net income increased 7 percent to $375 million or 55 cents a share, compared with net income of $350 million during the same quarter last year.
JCI's automotive business unit saw revenue increase in the quarter by 12 percent to $4.6 billion, compared with $4.1 billion last year. The increase is credited to higher production levels and the launch of new automotive seating and interiors programs.
The automotive business segment reported income of $177 million in the current quarter, up 46 percent from $121 million during the same quarter last year.
The segment's revenue increased 9 percent in North America, where automotive production in the quarter increased 7 percent. Revenue was up 13 percent in Europe, where production increased 6 percent. Asia revenue increased 49 percent and China revenue 37 percent, to $1 billion.
JCI has 24 joint ventures in China that operate 47 plants. It holds a 45 percent share of the Chinese auto seating market, the company said in a statement.
The planned acquisitions of German suppliers C. Rob. Hammerstein Group and Keiper/Recaro are expected to contribute about $700 million in revenue next year. In 2012, the acquisitions are forecast to generate $1.4 billion.
At JCI's power and battery segment, revenue jumped 21 percent to $1.6 billion in the first quarter of 2011 from $1.3 billion, reflecting higher shipments to aftermarket suppliers and automakers. Income increased 20 percent to $217 million, compared with $181 million in JCI's first fiscal quarter in 2010.
“Johnson Controls achieved record revenues and earnings despite the fact that our automotive and buildings markets are still far below historic norms," Chairman and CEO Stephen Roell said in a statement.
“Our Automotive Experience and Power Solutions businesses have recovered over the past year and continue to improve. Building Efficiency sales and earnings increased at a double-digit pace with continued strong order and backlog rates. We now have solid momentum in all three of our businesses.”