Strong third quarter for Johnson Controls

Johnson Controls today reported record sales and earnings for the third quarter, with profits rising 11 percent following a surge in sales at its building efficiency division.  ┬á Sales for the quarter ended June 30, 2008 increased to $9.9 billion, up 11 percent from $8.9 billion for the third quarter of 2007. Net income increased 11 percent to $439 million compared with $396 million last year.┬á┬á "Johnson Controls achieved record results despite the difficult conditions in the domestic automotive and residential construction markets which affect approximately 20 percent of our revenues," said Stephen A. Roell, chairman and chief executive officer. ┬á┬á "We continue to grow due to our unique ability to help customers improve their competitiveness, especially in the areas of energy efficiency and sustainability. We also continue to benefit from our strong presence in emerging growth markets and our increasing shares in the large markets for buildings and batteries."┬á┬á Building efficiency sales were $3.7 billion, up 13 percent compared with 2007 revenues of $3.2 billion. The increase reflects higher sales in all commercial building segments, with double-digit improvements in North America, Europe and Asia.┬á┬á Johnson Controls said that in the third quarter it received an order for 18 water-cooled chillers as part of a district cooling system under construction in the Middle East. The contract is the single largest HVAC equipment order in the company's history and is indicative of the significant growth opportunities in the region.┬á┬á Automotive experience sales were $4.8 billion, up 3 percent from $4.6 billion in 2007. North American sales decreased 15 percent, however, in line with industry production. In China, where Johnson Controls has more than a 40 percent market share for complete seats, automotive production in the quarter increased an estimated 13 percent.┬á┬á The company said that its earnings over the next two quarters will be negatively impacted by the acquisition of Plastech Engineered Products on July 1, 2008, and higher commodity costs.┬á┬á Read Johnson ControlsÔÇÖ earnings statement in full here.  ┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *