Johnson Controls expects to post record profits in FY15
December 17, 2014 - United States Of America
Producer of automotive interiors and seats, Johnson Controls said it expects to post record profits in fiscal 2015.
“In the coming years, we believe the Johnson Controls Operating System will increasingly impact our profitability, leveraging our unique strengths and expertise across the enterprise," CEO Alex Molinaroli said.
Johnson expects consolidated net sales of approximately $42.3 billion in fiscal 2015, level with fiscal 2014 and year-on-year segment income growth of approximately 11 per cent.
Diluted earnings per share are forecast to be approximately between $3.55 and $3.70, excluding transaction and integration costs associated with M&A activity.
In fiscal 2015, the company expects global automotive production to increase across all the key geographies, led by an expected 10 per cent growth rate in China.
European and North American production are each expected to grow 2 per cent in 2015 versus 2014.
Automotive seating 2015 sales are expected to decline 5 to 6 per cent reflecting lower investments in mature markets, new financial performance hurdles and foreign currency headwinds.
The company noted that the expected double-digit growth in its China business is not reflected in the revenue forecast as most of its China business is represented by non-consolidated joint ventures.
Automotive interiors sales are expected to fall resulting from the expected completion of the interiors joint venture in the second half of the fiscal year.
The three-year seating backlog increased 36 percent, to $3.5 billion, with approximately two-thirds of the total located in China.
It also expects automotive seating segment margins to increase to approximately 5.4-5.7 per cent reflecting operational improvements.
Alex Molinaroli added, "We believe our strategic and financial plans will continue to drive improved performance and higher operating margins.”
Johnson Controls said it expects 2015 capital investments of $1.3 billion, approximately $100 million higher than in 2014.
It expects to generate around $1.5 billion in free cash flow, providing capacity for capital expenditures, strategic acquisitions, previously announced share repurchases and increased dividend payments.
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries through its 170,000 employees. (AR)
“In the coming years, we believe the Johnson Controls Operating System will increasingly impact our profitability, leveraging our unique strengths and expertise across the enterprise," CEO Alex Molinaroli said.
Johnson expects consolidated net sales of approximately $42.3 billion in fiscal 2015, level with fiscal 2014 and year-on-year segment income growth of approximately 11 per cent.
Diluted earnings per share are forecast to be approximately between $3.55 and $3.70, excluding transaction and integration costs associated with M&A activity.
In fiscal 2015, the company expects global automotive production to increase across all the key geographies, led by an expected 10 per cent growth rate in China.
European and North American production are each expected to grow 2 per cent in 2015 versus 2014.
Automotive seating 2015 sales are expected to decline 5 to 6 per cent reflecting lower investments in mature markets, new financial performance hurdles and foreign currency headwinds.
The company noted that the expected double-digit growth in its China business is not reflected in the revenue forecast as most of its China business is represented by non-consolidated joint ventures.
Automotive interiors sales are expected to fall resulting from the expected completion of the interiors joint venture in the second half of the fiscal year.
The three-year seating backlog increased 36 percent, to $3.5 billion, with approximately two-thirds of the total located in China.
It also expects automotive seating segment margins to increase to approximately 5.4-5.7 per cent reflecting operational improvements.
Alex Molinaroli added, "We believe our strategic and financial plans will continue to drive improved performance and higher operating margins.”
Johnson Controls said it expects 2015 capital investments of $1.3 billion, approximately $100 million higher than in 2014.
It expects to generate around $1.5 billion in free cash flow, providing capacity for capital expenditures, strategic acquisitions, previously announced share repurchases and increased dividend payments.
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries through its 170,000 employees. (AR)