Johnson Controls expects to post another successful year

The company is discussing its fiscal 2014 forecast with financial analysts in New York, New York. Highlights include:

- Year-on-year segment income improvement of approximately 15 percent
- Diluted earnings per share of approximately $3.15 to $3.30
- Consolidated net sales of approximately $43.8 billion, up 3 percent
- Sales and segment income increases in Automotive Experience, Building Efficiency and Power Solutions

"We are focused on market leadership in our core businesses and driving sustainable performance where we believe we can win," said Alex Molinaroli, chief executive officer of Johnson Controls. 

"This is reflected in our expectations for a successful 2014 as well as the positive outlook we have provided through 2018.   Johnson Controls has a heritage of consistent execution and innovation and we will outline our plans to leverage that foundation to maximize shareholder value and continue to build our strategic position."

Molinaroli said the company expects to build upon the strong operating momentum demonstrated in its most recent quarters, which generated strong cash flows and further improved the balance sheet.

"Significant transformation activities across the enterprise continue to drive improved execution and profitability," Molinaroli said, "and we are working to leverage and expand our organizational capabilities enterprise-wide utilizing the Johnson Controls Operating System, which will drive new levels of success for the company."

China is a growth opportunity across all of the company's businesses, representing more than $8 billion in annual revenues in fiscal 2013, including the company's non-consolidated joint ventures.   Johnson Controls said it will continue making significant growth investments the Chinese market and noted that it had started construction of a new corporate headquarters building in Shanghai, reflecting the market's growing importance.

At the meeting, Johnson Controls outlined its strategic criteria for rebalancing its portfolio of businesses to lessen its dependence on the auto sector and earn the higher valuations awarded to multi-industry companies.  Molinaroli noted that portfolio management will be an on-going process.

"Active strategic and financial portfolio management is now a part of how we manage," he said. "This involves expectations of both acquisitions and divestitures, using rigorous assessments of what are the best financial cases and where we believe we can win."

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Johnson Controls