Glendale-based Johnson Controls Inc. has indicated it projects 2014 will be a year of marked earnings growth and increased profitability.
The global diversified industrial company focuses on the automotive, building and energy storage industries.
In 2014, Johnson Controls expects 15 percent growth in segment income, diluted earnings per share of about $3.15 to $3.30, up about 20 percent, and consolidated net sales of about $43.8 billion, up 3 percent.
“We are focused on market leadership in our core businesses and driving sustainable performance where we believe we can win,” Alex Molinaroli, chief executive officer of Johnson Controls, told analysts last week in New York. “This is reflected in our expectations for a successful 2014 as well as the positive outlook we have provided through 2018. Johnson Controls has a heritage of consistent execution and innovation and today we will outline our plans to leverage that foundation to maximize shareholder value and continue to build our strategic position.”
The company anticipates growth opportunities for all segments in China, which contributed $8 billion in annual revenues in 2013, when non-consolidated joint ventures are included. A new Shanghai corporate headquarters building is currently being constructed, which is a testament to the market’s importance.
Johnson Controls also plans to decrease its reliance on the automotive industry in its portfolio to drive a higher valuation as a multi-industry company.
“Active strategic and financial portfolio management is now a part of how we manage,” Molinaroli said. “This involves expectations of both acquisitions and divestitures, using rigorous assessments of what are the best financial cases and where we believe we can win.”
