Johnson Controls Forecasts $44 Billion in Sales in 2012

Q4 2011 revenues of $10.7 billion expected

Johnson Controls, Inc. announced on Oct. 12 that it expects to post record sales and earnings in fiscal 2012.

For 2011 fourth quarter the company expects to report revenues of approximately $10.7 billion and earnings.

For 2012 the company will see increased automotive production in North America and China, with relatively flat European production versus 2011. The forecast calls for approximately 6% revenue growth in 2012 by its Automotive Experience business, reflecting higher global production volumes and approximately $1.4 billion in new program launches, partially offset by the negative impact of a weaker Euro. Excluding currency, revenues would increase 9%.

In China Johnson Controls has 44% market share in seating and expects total revenues to increase by 21% to approximately $4.8 billion.

Its global Building Efficiency market is forecast to improve slightly in 2012 as strong growth in the emerging markets, especially China and the Middle East, offset softness in mature geographic markets. Building Efficiency revenues are expected to increase by 9-11% in 2012 due to strong backlogs, a moderate improvement in service and the continued growth of it energy efficiency and Global Workplace Solutions businesses.

"Johnson Controls entered fiscal 2012 with record backlogs in our automotive and buildings businesses. Our aftermarket battery business continues to grow and gain market share globally. In addition, we are benefitting from new growth platforms resulting from the investments we have made," said Stephen A. Roell, CEO, Johnson Controls. "While we recognize the challenges of the near-term global economy, we believe our unique strengths will enable Johnson Controls to deliver higher sales and double-digit earnings improvements in 2012."

Power Solutions 2012 revenues are expected to increase 11%13% due to higher volumes across all regions resulting from market share gains and the full year impact of the Changxing plant in China. The forecast segment margin of 13.5% - 13.9% reflects the benefits of vertical integration for the recycling of lead and the start of a product mix shift toward AGM battery technology. The higher segment margin from these factors will be partially offset by expenses associated with the consolidation of its hybrid battery business.

To support its organic growth opportunities, the company will increase capital investments to approximately $1.7 billion. More than 70% of the company's capital expenditures in 2012 are associated with growth and margin expansion opportunities. The higher capital expenditures will be focused on increased manufacturing capacity for SLI and AGM battery manufacturing capacity and expansion of the company's capabilities in the emerging markets.

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