Ahead Of Johnson Controls' Q1 Results

(RTTNews) - Auto parts supplier Johnson Controls Inc. (JCI) believes its strategic and operating plans will continue to drive strong performance in all of its businesses, and expects to report higher revenues and record profits in fiscal 2016.

The company now sees first-quarter adjusted earnings to be $0.82 per share, compared to the prior guidance range of $0.80 - $0.83 per share, an increase of 8% -12% versus the prior year's first quarter performance. Also, the company

The company will release its first-quarter results before the bell today, with analysts polled by Thomson Reuters expecting earnings of $0.82 per share on revenue of $9.29 billion.

The diversified technology company is going through a multi-year portfolio transformation to become a top-quartile multi-industrial company with leadership in attractive spaces connected to core growth platforms in buildings and energy storage.

Included in this transformation are several strategic transactions, which occurred during fiscal 2015 encompassing the divestiture of its Global Workplace Solutions (GWS) business and the contribution of its Automotive Experience Interiors business to the newly created joint venture with Yanfeng Automotive Trim Systems.

Also, the spin-off of its automotive business was progressing as planned, with a targeted date of October 3, 2016 for day one for the Automotive Company.

Most recently, Johnson Controls and Tyco announced a definitive merger agreement. Johnson Controls shareholders will own about 56% of the equity of the combined company and receive aggregate cash consideration of about $3.9 billion. Current Tyco shareholders will own about 44% of the equity of the combined company. Tyco has secured a committed $4.0 billion bank facility to finance the cash consideration.

For fiscal 2016, the company expects consolidated net sales of about $38.6 billion, an approximate 4% increase over 2015. The company projects earnings per share of about $3.70 - $3.90, up 8% - 14% from prior year.

The company's just bygone fourth quarter saw upbeat profit, helped by discontinued operations.

Attributable net income increased to $349 million from $309 million a year ago. Earnings per share grew to $0.53 from $0.46 last year.

Income from discontinued operations was $346 million, compared to a loss of $17 million last year.

Earnings per share from continuing operations were $0.00, in comparison with $0.49 last year.

Adjusted earnings per share rose to $1.07 from $1.04 in the same quarter last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $1.01 per share. Analysts' estimates typically exclude certain special items.

Net revenues fell to $8.75 billion from $10.0 billion in the prior year, due primarily to the deconsolidation of the company's automotive interiors business and foreign exchange. Analysts expected revenues of $8.79 billion.

Excluding the impact of the deconsolidation of the interiors business and foreign exchange, sales increased 3%.