Johnson Controls profit up, to sell electronics unit
Johnson Control (JCI. N)
Released a stronger-than-
Expected quarterly profit on Thursday, and said it would sell some of its auto electronics business for about $0. 7 billion (
0. 46 billion)
Its share price rose.
Pre-session trading of 1%.
Gentex Co. , Ltd. sells chain products (GNTX. O)
It is expected to end around the end of September.
Johnson Controls said it expects to announce the sale of the rest of its electronics business before the next earnings report.
Ravi Shanker, an analyst at Morgan Stanley, said the deal was the most important deal of the quarter.
He said: \"Since household ink accounts for about half of total sales of electronic products, the price of the deal is a good sign given speculation that the entire product will receive $1 billion.
Johnson, the largest car manufacturer in the United States? S.
Auto parts manufacturers say it separates home ink from other electronics businesses in order to get the best possible deal.
For more than a decade, systems based on systems that allow drivers to remotely activate garage door opener, entrance door locks, home lighting, safety systems, and other products have been integrated into Gentex products.
Gentex, this makes it automatic-
Dimming mirrors and cameras
Lighting and drive based-
Assist systems said the agreement would increase its annual income by $0. 125 billion to $0. 15 billion.
In April, Johnson Controls said the potential sales of its automotive electronics business were in its early stages.
Third, it hired JPMorgan Chase (JPM. N)
Run the sales process.
People familiar with the process said last month that Johnson Controls was talking to private equity firms about the business after interest from rival auto parts suppliers swayed.
Johnson Controls also manufactures car interiors and batteries for buildings, as well as heating, cooling and ventilation systems.
The company said net income for the third quarter ended June 30 rose 38% to $0. 594 billion, 83 cents per share, compared with $0. 431 billion for the same period last year, 63 cents per share.
Company quotes double
All of the company\'s businesses have achieved digit growth and said its European car business was profitable after a loss in the last quarter.
European car sales have reached 20
Year lows, causing many companies in the industry to lose money, shut down factories and cut jobs. Excluding one-
Over time, Johnson Controls earned 78 cents per share in the most recent quarter, three cents higher than the average analyst estimate from Thomson Reuters I/B/E/S survey.
Revenue rose 2.
$ 4% to $10. 83 billion.
Analysts had expected $11 billion.
The company said sales in its construction efficiency business fell 2% due to weak demand in North America and Europe.
Due to the increase in car production in North America and Asia, Johnson Control\'s largest business-sales in the automotive sector grew by 4%, partially offset by a decline in sales in Europe.
For the rest of the year, the company expects China\'s auto production to remain strong, North American auto production to improve, and Europe to show signs of stability.
Sales in the battery business increased by 8%, but Johnson Controls said demand for replacement markets in North America and Europe was weaker than expected.
The company has narrowed its entire business.
Year profit forecast, but year
The point of the interval remains unchanged.
Its income is $2. 64 to $2.
Compared to the previously predicted $2, $66 per share. 60 to $2. 70.
Quarterly earnings of 93 to 95 cents per share.
Shanke said full-Four a year
The quarterly outlook is still higher than Wall Street\'s average.