Johnson Controls Explores Sale of Auto-Electronics Unit

By Kristin Jones

Johnson Controls Inc. ( JCI ) said it has retained J.P. Morgan Chase & Co. ( JPM ) to advise on a potential sale of its automotive-electronics business, and disputed media reports that it intended to sell its auto-interiors unit.

Reuters reported Wednesday that the company had retained J.P. Morgan Chase to advise on a possible sale of its auto- interiors business, citing three people familiar with the matter.

But the company said it has "no current intention" to sell that unit.

Rather, Johnson Controls said that it is in the preliminary stages of the process to explore a sale its auto- electronics business. No other details were given.

The diversified manufacturer of car batteries, auto seats and York-brand heating and air-conditioning systems reported in January that its fiscal first-quarter profit dropped 15%, and predicted that a weak European auto market would drag down earnings in the first half of the year.

Johnson Controls' first-quarter income from auto interiors and electronics plunged 50% from a year earlier to $101 million; the company blamed lower demand from European customers and higher engineering and product-development expenses.

Shares rose 2.4% in recent trading to $32.56. The stock is up 6.2% since the start of the year.

Write to Kristin Jones at kristin.jones@dowjones.com

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  03-06-131604ET
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