Glendale-based Johnson Controls Inc., a global diversified company in the building and automotive industries, expects to post higher sales and earnings in fiscal 2013, despite a challenging economic environment.
The company presented its fiscal 2013 forecast to financial analysts in New York. Highlights include:
- Consolidated net sales of approximately $43.5 billion, up 3 to 4 percent.
- Year-on-year segment income improvement of approximately 10 percent.
- Diluted earnings per share of approximately $2.60 to $2.70, which is level to 4 percent higher than fiscal 2012.
- Sales and segment income improvement in all four of its businesses.
- Continued capital investment to support growth and margin expansion opportunities.
From a market perspective, Johnson Controls said that compared with 2012 markets, it expects slightly higher 2013 automotive production in North America and China with lower production in Europe. Global non-residential construction spending is forecast to be relatively flat in 2013 as strength in emerging markets, especially Asia, offsets anticipated softness in North America and Europe.
The company said it believes it is positioned to grow faster than its underlying markets with improved profitability over the long term.
“While we recognize the challenges of the near-term global economy, we believe our unique strengths will enable Johnson Controls to outperform our underlying markets. We have added management capacity and depth with talent from outside JCI to further leverage of our competitive advantages,” said Stephen Roell, chairman and chief executive officer of Johnson Controls. “The company continues to benefit from growth opportunities stemming from our investments in technology and global expansion. We remain committed to investing for future growth and profit improvement and are confident that our 2013 strategies and improvement initiatives position us to improve shareholder value over the long term.”
