Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • CEO Issue
    • Diversity
    • Best Places to Work
      • 2022 winners
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Injection Molding & Design Expo
    • Reuters Responsible Business Europe 2022
    • Reifenhäuser Technologies Livestreams
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Custom
    • Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
News
April 22, 2016 02:00 AM

JCI says seating orders accelerate as Adient spinoff approaches

Bradford Wernle
John Irwin
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Johnson Controls Inc.
    Johnson Controls Inc. says the spinoff of its seating business into Adient will be completed by the end of October.

    On the verge of spinning off its automotive seating business into a new company called Adient, Johnson Controls Inc. said its seating orders accelerated during the first half of fiscal 2016, and were “nearly equal to full year fiscal 2015 levels."

    JCI CEO Alex Molinaroli also said in a second-quarter earnings webcast April 21 that Adient's corporate headquarters would not be in the United States, though the company declined to say where it will be located.

    JCI, the world's largest seat supplier, also said the planned spinoff of its seating business is on pace to be completed by Oct. 31, later than the initial Oct. 3 goal.

    Adient will file a U.S. Securities and Exchange Commission Form 10 later this month with more details about its finances and corporate structure.

    Earlier this year, Glendale, Wis.-based JCI announced it will merge with Tyco Corp. and that the merged company would be based in Ireland. The JCI-Tyco deal became part of a firestorm of controversy over so-called tax inversion deals, which involve a U.S. company shifting its tax address to another country to lower its tax rate.

    President Barack Obama has criticized such deals and Democratic presidential candidate Hillary Clinton called the JCI-Tyco merger “outrageous.” The company has denied such charges.

    Fraser Engerman, director of global media relations for JCI, said: “As we've said all along, this deal was driven by the strategic value it brings. This was not a tax-driven deal. It was about bringing together two world class companies. It was not about the taxes.”

    The $14 billion merger is expected to be completed by Oct. 1, the companies said today in a regulatory filing.

    The announcement comes after the companies reviewed new rules by the U.S. Treasury Department that would prevent some companies from participating in inversions. The rules, which limit a company from inverting if it has previously done so within three years, killed the proposed $160 billion merger between Pfizer Inc. and Allegran Plc.

    Seating momentum

    Bruce McDonald, CEO of Adient, said the renewed momentum of seating orders shows there were good reasons to spin off the seating business.

    “When you think about the rationale for spinning off the automotive business, we wanted to free up automotive to reinvest,” he said. “Compared to our closest competitor, our reinvestment has been 30-40 percent lower than theirs. Our growth has been stunted because of our lack of commitment on future [capital expenditures] and engineering. We're giving them back resources and letting them flourish in the first half.”

    The operational offices for Adient will be distributed between Plymouth, Mich., the site of the division's current North American headquarters; Burscheid, Germany; Shanghai, China, and a corporate presence in Milwaukee, said Engerman.

    In 2014, JCI spun its interiors business to the Chinese company Yanfeng Automotive Interiors. JCI retains a 30 percent stake in that venture. Once Adient spins off in October, JCI, once one of the world's largest automotive suppliers, will be out of the auto seating and interiors business. JCI will remain in the automotive battery business.

    It has in-house injection molding for batteries, while other plastics operations have gone into the Yanfeng Visteon business and will go to Adient.

    Earnings report

    JCI also reported a net loss of $530 million, or 82 cents per share, for the quarter ending March 31, compared with a $529 million profit a year earlier.

    The company attributed the loss to costs related to the Tyco merger, among others. JCI reported per-share earnings of 86 cents excluding those costs, beating expectations.

    Sales fell to $9 billion from $9.2 billion a year earlier. Sales at the company's automotive business fell 18 percent from a year earlier to $4.3 billion.

    Johnson Controls shares rose 4.7 percent to close at $41.58 today.

    RECOMMENDED FOR YOU
    C-sert designs thread repair inserts with lifetime guarantees
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    More resins see April price hikes, but not polyethylene
    2
    New Hope building world's largest pyrolysis plant
    3
    Metro Plastics Technologies sold to NY investment firm
    4
    Report reveals ‘dirty climate secrets’ of PVC flooring
    5
    Colorado's EPR bill could mean higher materials fees
    SIGN UP FOR TO RECEIVE THESE EMAILS AND ENEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Urethanes Technology
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • CEO Issue
        • Diversity
        • Best Places to Work
          • 2022 winners
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
        • Injection Molding & Design Expo
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Reuters Responsible Business Europe 2022
        • Reifenhäuser Technologies Livestreams
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Custom
      • Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified