Johnson Controls Inc.
) plans to layoff 392 workers at its Johnson Controls Interior
Manufacturing (JCIM) plant, located in National Turnpike in
Louisville, Kentucky. The plant is in operation from 1999 and
manufactures injection-molded plastic interior components for
The layoff stems from the company's decision to close the plant
in order to get rid of excess capacity in its interiors business.
The company would, however, retain 50 employees working at the
plant, according to a notice with the Kentucky Division of
Workforce and Employment Services.
Johnson Controls has been recently bested by China's auto parts
conglomerate Wanxiang Group Corp. in acquiring the assets of
Waltham, Massachusetts based lithium-ion battery maker A123
Systems Inc. The company believed that the acquisition of A123
assets will strengthen its existing portfolio and help maintain
the market leading position.
However, Wanxiang won the auction by offering $256.6 million for
the assets of A123. The Chinese company bought A123's automotive
segment, energy-grid storage business, commercial business and
U.S. government business. The sale included two facilities
located in Livonia and Romulus in Michigan.
Johnson Controls, a Zacks #4 Rank (Sell) company, reported
adjusted earnings per share of 77 cents for the fourth quarter of
its fiscal year ended September 30, 2012, ahead of the Zacks
Consensus Estimate of 75 cents and up 1.3% from 76 cents a year
ago. Earnings were in line with the management expectation of 0%
to 5% growth in the quarter.
Management believed earnings had favorable impacts from the
improved profitability in Building Efficiency, Power Solutions
and North America Automotive Experience businesses. However,
these were offset by weak performance in automotive and buildings
markets in Europe.
The company's revenues for the quarter decreased 3.6% to $10.4
billion. It was marginally lower than the Zacks Consensus
Estimate of $10.8 billion. However, excluding the impact of
foreign exchange, revenues grew by 1% in the quarter.
The company has not provided any specific guidance for fiscal
2013. It expects that earnings in the first half of fiscal 2013
will be lower than the year ago period due to weak end markets
and adverse effects of foreign currency.
However, it anticipates that earnings will be higher in the
second half of fiscal 2013 compared to the year-ago period,
driven by positive impact from restructuring activities.
Meanwhile, earnings in fiscal 2013 are expected to be flat or a
bit higher than fiscal 2012.
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Johnson Controls is a supplier of automotive interiors, batteries
and other control equipment. Its main competitors include
Magna International Inc.
) in the Automotive Experience segment,
Honeywell International Inc.
) in the Building Efficiency segment and
) in the Power Solutions segment.