JCI says divesting unprofitable interiors unit is an option

Andrew Thurlow
AUTOMOTIVE NEWS

Published: October 29, 2013 3:43 pm ET
Updated: October 29, 2013 4:32 pm ET

Related to this story

Topics Mergers & Acquisitions, Automotive, Injection Molding
Companies & Associations Johnson Controls Inc.

Johnson Controls Inc. said it would explore various options for its unprofitable automotive interiors unit, including a divestiture.

The plan is part of the Glendale, Wis.-based supplier's strategy under new CEO Alex Molinaroli, who replaced Steve Roell on Oct. 1. Molinaroli said JCI would make moves to become a more multi-industry company, focusing more efforts on its automotive battery and building efficiency units.

JCI's automotive interiors unit, which makes various components such as headliners and instrument panels, generated revenue of $4.2 billion and lost $13 million in the most recent fiscal year, the company said in a statement today. The company's seating operations are not included in the strategic review.

In late September, the company reported the sale of a portion of its electronics operations, HomeLink, to Gentex Corp. for $700 million. Gentex, which makes dimming rearview mirrors and other driver-assist systems, said in July that the deal would boost its yearly profits by $25 million to $150 million.

An announcement regarding the sale of the remaining electronics business, which totals to about $1 billion a year in sales, is expected to be made by the end of the calendar year, JCI said in a statement.

Also today, JCI posted a quarterly profit — excluding onetime items — of $657 million, up from $526 million in the fourth fiscal quarter a year ago. After onetime costs, the company said it posted net income of $105 million in the quarter vs. a loss of $8 million during the same period last year.

Its quarterly revenue also rose to $11.05 billion, compared to $10.39 billion in 2012.

The company's new CEO, Alex Molinaroli, said today that JCI expects earnings to rise 30 percent in the next quarter.

"While the macroeconomic environment continues to be challenging, each of our businesses generated top line growth in the fourth quarter. Even more importantly, they all had significant improvements in profitability," Molinaroli said.

Former CEO Steve Roell remains chairman of the board of directors until Dec. 31.


Comments

JCI says divesting unprofitable interiors unit is an option

Andrew Thurlow
AUTOMOTIVE NEWS

Published: October 29, 2013 3:43 pm ET
Updated: October 29, 2013 4:32 pm ET

Post Your Comments


Back to story


More stories

Image

Milacron opening Mexico technical center, considers another in Brazil

December 16, 2014 12:58 pm ET

Milacron LLC plans to officially open a new technical center in Querétaro, 140 miles northwest of Mexico City, early in 2015, and the company is...    More

Image

Fiat Chrysler drops Chrysler Group name in favor of FCA US

December 16, 2014 9:05 am ET

Chrysler is Chrysler no more. Fiat Chrysler Automobiles, the Netherlands-based parent company of what was Chrysler Group LLC, said today that it has...    More

Image

Plastikos, Micro Mold working with local high school

December 15, 2014 6:00 am ET

The companies donated a 60-ton Demag injection press to the school, and Micro Mold’s general manager has worked with the high school's tool...    More

Izo-Blok opens Polish car part plant

December 15, 2014 9:16 am ET

Poland's plastic car parts maker Izo-Blok has launched its new production facility in Chorzów, in Poland's southern region of Silesia.    More

Image

New leader gives molder a spark

December 12, 2014 11:40 am ET

A dynamic 32-year-old woman is energizing a Woodstock, Ill., injection molding business that her grandfather, now 80, founded as a tool shop.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events