Johnson Controls, Inc. gave its shareholders some good news when it released forecast diluted earnings per share that were more than earlier anticipated and sales also are expected to rise. The company reports forecast diluted earnings per share from continuing operations for fiscal 2008 is increasing 18 percent to $2.45 to $2.50. It also reported sales for 2008 should increase by 10 percent to approximately $38 billion. Stephen A. Roell, chief executive officer, says Johnson Controls' near-term sales growth will be driven by a combination of its participation in growing markets and its ability to increase market shares "In the automotive market, we are benefiting from our exposure to emerging markets and increasing demand for higher levels of interior comfort, convenience and connectivity," he says. "Concurrently, we have significant exposure to the steady building services and aftermarket battery sectors where we are enjoying strong growth. We are also in a strong position to make investments that will broaden our product portfolios, technical capabilities and market penetration." The company confirmed its guidance for 2007 fourth-quarter earnings of $0.77 to $0.78 per diluted share from continuing operations, an increase of 24 percent to 26 percent from the prior year. For the full year, earnings are expected to be approximately $2.08 to $2.10 per diluted share from continuing operations (excluding a non-recurring tax benefit of $0.06 per share), up 19 percent over 2006. "Our forecast for margin improvement reflects the continuation of our disciplined process for achieving improvements in quality and cost," Roell adds. "Those achievements, combined with our increased revenue growth, will make 2008 another year of strong profitable growth for Johnson Controls." Sales for 2007 are expected to total $34.5 billion, up 7 percent. These record results will mark the company's 61st consecutive year of sales growth and 17th consecutive year of earnings growth. The company will report its financial results for fiscal 2007 on Oct. 23. All earnings forecasts reflect the company's 3-for-1 stock split on Oct. 2. |
