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Johnson Controls moves to 4th-quarter profit

The Associated Press

NEWS: Johnson Controls moved to a profit in its fiscal fourth quarter, partly helped by a gain related to the sale of two businesses.

The company, which makes heating and ventilation systems for buildings, also announced Tuesday that it plans to explore strategic options for its automotive interiors business.

DETAILS: The latest quarter included a $235 million gain tied to the sale of two businesses, including HomeLink — 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. There was also a $236 million gain related to pension and retiree medical benefits and a $42 million pension settlement gain.

NUMBERS: Johnson Controls Inc. earned $105 million, or 15 cents per share, for the three months ended Sept. 30. A year ago it lost $8 million, or 1 cent per share.

Stripping out a $694 million restructuring and impairment charge and other items, earnings were 95 cents per share.

This met the expectations of analysts surveyed by FactSet.

Revenue increased 6 percent to $11.05 billion from $10.39 billion as results improved across its segments. Wall Street called for $10.95 billion in revenue.

For the year, the company earned $1.18 billion, or $1.71 per share. That compares with $1.18 billion, or $1.72 per share, in the prior year. Adjusted earnings were $2.66 per share.

Annual revenue rose 2 percent to $42.73 billion from $41.96 billion.

FUTURE: Johnson Controls anticipates first-quarter earnings rising about 30 percent, or 35 percent when adjusted to account for the September sale of HomeLink.

The Milwaukee company anticipates modest revenue growth in the upcoming year due to improving end markets. Johnson Controls said that it will give its full fiscal 2014 outlook at its annual analyst day in New York on Dec. 18.

STOCK: The shares gained 2.2 percent, or 95 cents, to $43.77 in morning trading.