Johnson Controls Sees FY14 Earnings Below Estimates - Update

(RTTNews) - Auto parts supplier Johnson Controls, Inc. (JCI) Wednesday forecast earnings per share for fiscal 2014 below analysts' expectations, but said it expects to post another successful year of profitable growth with increasing returns in fiscal 2014.

For the fiscal ending September 2014, the company expects earnings per share to be in the range of about $3.15 to $3.30.

Consolidated net sales are anticipated to be nearly $43.8 billion, an increase of 3 percent from last year. For fiscal 2013, the company had posted net sales of $42.73 billion.

On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $3.31 per share, on revenues of $43.87 billion for fiscal 2014. Analysts' estimates typically exclude special items.

Johnson Controls sees an year-on-year increase of about 15 percent in segment income. It expects sales and segment income increases in Automotive Experience, Building Efficiency and Power Solutions.

Automotive Experience segment margins are expected to be about 4.0 to 4.2 percent reflecting higher volumes, operational improvements, especially in its metals business, and benefits from restructuring actions.

Power Solutions sales in 2014 are anticipated to increase around 7 to 8 percent, with higher volumes across all regions and channels with strong market share growth in China. In Building Efficiency, the company sees sales to be up 1 to 3 percent with strong emerging market growth.

Alex Molinaroli, chief executive officer of the company said, "We are focused on market leadership in our core businesses and driving sustainable performance where we believe we can win. This is reflected in our expectations for a successful 2014 as well as the positive outlook we have provided through 2018."

According to the company, China is a growth opportunity across all of its businesses, and said it will continue making significant growth investments the Chinese market. Further, the firm stated that it had started construction of a new corporate headquarters building in Shanghai.

In fiscal 2014, the company expects global automotive production to increase across all the key geographies, led by an expected 11 percent growth rate in China. European production is expected to grow 2 percent compared to 2013, with a North American market outlook of 6 percent growth.

The company expects 2014 capital investments of $1.2 billion, about $200 million lower than in 2013.

JCI closed Tuesday's regular trading at $51.32 on the NYSE.