Johnson Controls Inc.
) raised its quarterly dividend payment by 5.6% to 19 cents from
18 cents, paid for the third quarter of the year. The fourth
quarter dividend will be applicable to shareholders of record as
of December 7. It will be paid on December 28 instead of January
due to possible changes in tax laws. According to the company,
the dividend hike is mainly based on its financial performance
and continued growth.
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Johnson Controls stalled its dividend payment increases in 2008
til 2009 due to the global economic recession. After that period,
the company raised its dividend by 23.1% to 16 cents for the
fourth quarter of 2010 and continued raising it in the succeeding
years. Last year, the company raised dividend by 12.5% to 18
The 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's expectation of 0% to 5% growth in the
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
earnings will be higher in the second half of fiscal 2013
compared to the year-ago period, driven by a positive impact from
restructuring activities. Meanwhile, earnings in fiscal 2013 are
expected to be flat or a bit higher than fiscal 2012.
Johnson Controls is a supplier of automotive interiors,
batteries, and other control equipment. Its main competitors
Magna International Inc.
) in the Automotive Experience segment,
Honeywell International Inc.
) in the Building Efficiency segment and
) in the Power Solutions segment.