Johnson Controls Q3 Profit Rises;plans To Pursue Spin-off Of Automotive Business

(RTTNews) - Johnson Controls Inc. (JCI), a global multi-industrial company, reported that its net income attributable to the company for the third-quarter increased to $178 million from the prior year's $176 million, with earnings per share improving to $0.27 from $0.26 in the previous year.

Earnings per share from continuing operations significantly increased to $0.76 from $0.34 in the prior year.

Adjusted earnings per share from continuing operation was $0.91 versus $0.79 in the same quarter last year.

As a result of the previously announced sale of its Global Workplace Solutions or GWS business, the Company has reclassified GWS results to discontinued operations. Prior year financial statements have been revised accordingly.

Net revenues were $9.6 billion versus $9.8 billion in last year. Excluding the impact of foreign exchange, sales increased 5 percent.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share and revenues of $9.58 billion for the quarter. Analysts' estimates typically exclude special items.

For the fourth quarter of 2015, the company expects earnings from continuing operations of $1.00 - $1.03 per share, up approximately 5 percent versus the 2014 fourth quarter, excluding any transaction-related costs and non-recurring items. Analysts expect earnings of $1.01 per share for the fourth-quarter.

The company also reaffirmed its full fiscal year expectations for segment margin improvements in all three of its businesses.

Johnson Controls announced that it plans to pursue a tax-free spin-off of its Automotive Experience business. Following the separation, which is expected to close in approximately 12 months, the Automotive Experience business will operate as an independent, publicly traded company.

Once the transaction is completed, Bruce McDonald, Johnson Controls vice chairman and executive vice president, will serve as the chairman and CEO of the new company. Beda Bolzenius will serve as president and chief operating officer.

Automotive Experience reported $22 billion in revenue in 2014.

As part of the spin-off preparation, Johnson Controls is initiating a comprehensive cost savings program.

The company also said it continues to expect the sale of its GWS business to CBRE to close in the fiscal 2015 fourth quarter, subject to final regulatory approvals. Completion of the HVAC joint venture with Hitachi is now expected in the fiscal 2016 first quarter.