Johnson Controls predicts record profits

USA: Johnson Controls is expecting its joint venture with Hitachi and the divestiture of its GWS business to both be completed during this financial year.

In a meeting in New York today, the company will also announce expectations of record profits in fiscal 2015, which runs to September 30. Consolidated net sales of approximately $42.3bn, similar to 2014, are expected across the company’s three businesses.

“We continue to make progress in re-shaping our portfolio and executing on our strategies to be a leading multi-industry company,” said Alex Molinaroli, chairman and chief executive officer of Johnson Controls. “We believe our strategic and financial plans will continue to drive improved performance and higher operating margins. In the coming years, we believe the Johnson Controls Operating System will increasingly impact our profitability as we implement the Johnson Controls Way, leveraging our unique strengths and expertise across the enterprise.”

The company sees China as a growth opportunity across all of the company’s businesses, representing more than $8bn in annual revenues in 2014.

Leading the way in 2015, Building Efficiency sales, excluding Global Workplace Solutions (GWS), are expected to be up 9-11% with expectations of modest North America market growth and continued emerging market growth. Excluding the impact of the 2014 acquisition of Air Distribution Technologies (ADT), sales are expected to increase 2-4%.

The company also announced it was confident that the joint venture with Hitachi and the divestiture of its GWS business would both be completed in 2015.