For the third quarter of fiscal 2011,Johnson Controls reported a 21% increase in revenues with double-digit sales increases in each of its three businesses.
Net income was $383 million vs. $367 million in Q3 2010, up 4%.
"These record revenues mark our seventh consecutive quarter of double-digit growth. All of our businesses are continuing to grow faster than their underlying industries as a result of share gains and our strong position in the emerging markets," said Stephen A. Roell, CEO. "Automotive Experience in particular exceeded the expectations set as we entered the third quarter due to faster-than-expected market recovery following the Japan earthquake and higher production levels in some markets."
Automotive Experience sales in the quarter increased 21% to $5.1 billion versus $4.2 billion last year due primarily to higher production volumes, new program launches and incremental sales from recent acquisitions, the company reported. However the company's sales in the 2011 quarter were negatively impacted by approximately $400 million due to disruptions in automotive production resulting from the March 2011 earthquake in Japan.
North American revenues in this business segment increased to $1.8 billion from $1.7 billion last year as the significant reduction in domestic vehicle production by its Japanese customers offset higher sales to other automakers. European sales were up 38% to $2.8 billion from $2 billion in the 2010 quarter due to higher production levels, the launch of new seating and interiors programs and the incremental sales from recent acquisitions. Excluding the impact of foreign exchange, revenues increased 24%. Sales in Asia increased 24% to $546 million from $440 million in 2010. China revenues, which are mostly generated through unconsolidated joint ventures, rose 20% to $936 million compared with $780 million a year ago. Johnson Controls has a 45% share of the Chinese automotive seating market and is launching multiple new interiors programs over the next three years.
The company noted that it completed its acquisition of seating metals and mechanism component maker Keiper / Recaro on June 20, 2011.
In the company's power Solutions segment income was up 21% to $163 million versus $135 million in the third quarter of 2010.
And the Building Efficiency business saw sales of $3.9 billion, up 21% compared with $3.2 billion last year.
In June, Johnson Controls announced plans to invest $138.5 million to convert its battery plant near Toledo, Ohio into an Absorbent Glass Mat (AGM) battery facility for Start-Stop and other high efficiency vehicles. The facility will be the company's first dedicated AGM plant in the United States and will add 6 million units in AGM battery capacity by 2013. Johnson Controls has previously announced that it was expanding AGM manufacturing capacity in Europe to 11.2 million units by 2015.
Johnson Controls believes the market for AGM batteries will grow to 35 million batteries globally by 2015.
Copyright Agence France-Presse, 2011