Johnson Controls 3Q adjusted profit beats Street

Johnson Controls 3Q adjusted profit tops analysts' estimates; 4Q profit outlook above Street

Associated Press

MILWAUKEE (AP) -- Johnson Controls' fiscal third-quarter net income climbed 33 percent, as revenue improved for its automotive experience and power solutions units. Adjusted earnings beat Wall Street's expectations, and the Milwaukee company provided a fourth-quarter earnings forecast above analysts' estimates and narrowed its full-year earnings outlook to a range still ahead of consensus.

Johnson Controls, which makes heating and ventilation systems for buildings, also said that it is selling its HomeLink business to auto parts supplier Gentex Corp. for $700 million.

Shares rose in morning trading.

For the three months ended June 30, the company earned $571 million, or 83 cents per share. That's up from $431 million, or 63 cents per share, in the 2012 third quarter.

Excluding 5 cents per share related to tax benefits, earnings were 78 cents per share.

Analysts, on average, expected adjusted earnings of 75 cents per share, according to FactSet.

Johnson Controls' stock added $2.60, or 7 percent, to $39.94 in morning trading.

Revenue increased 2 percent to $10.83 billion, from $10.58 billion last year. Wall Street called for $10.96 billion in revenue.

Revenue rose for the company's automotive experience and power solutions segments, but declined in the building efficiency division, due to weak demand in North America and Europe.

The sale of HomeLink, part of Johnson Controls' plan to sell the rest of its electronics business, is expected to close by the end of September. HomeLink is a system that allows drivers to remotely activate garage door openers, entry door locks, home lighting, security systems, entry gates and other radio frequency convenience products. The system has been a part of Gentex Corp.'s automatic dimming rearview mirrors for more than a decade.

HomeLink is sold in North America, Europe, Africa, the Asia-Pacific region and the Middle East.

Looking ahead, Johnson Controls now foresees fiscal 2013 earnings in a range of $2.64 to $2.66 per share. Its prior guidance was for $2.60 to $2.70 per share. It predicts fourth-quarter earnings of 93 cents to 95 cents per share.

Analysts, on average, expect full-year earnings of $2.61 per share and fourth-quarter earnings of 92 cents per share.

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