Johnson Controls Provides FY14 Outlook - Quick Facts

(RTTNews) - Auto parts supplier Johnson Controls Inc. (JCI) said Wednesday that it expects earnings to be in the range of about $3.15 to $3.30 per share, and consolidated net sales of about $43.8 billion for fiscal 2014. Analysts polled by Thomson Reuters expect the company to report earnings of $3.31 per share and revenues of $43.87 billion for fiscal 2014. Analysts' estimates typically exclude special items.

The company anticipates year-on-year segment income improvement of about 15 percent for fiscal 2014.

The company expects 2014 capital investments of $1.2 billion, about $200 million lower than in 2013. It expects to generate approximately $1.6 billion in free cash flow, providing capacity for capital expenditures, strategic acquisitions as well as previously announced share repurchases and increased dividend payments.

The company said it is discussing its fiscal 2014 forecast with financial analysts today in New York, New York.

In fiscal 2014, the company expects global automotive production to increase across all the key geographies, led by an expected 11 percent growth rate in China. European production is expected to grow 2 percent versus 2013, with a North American market outlook of 6 percent growth.

Automotive Seating 2014 sales are expected to increase 1 to 2 percent reflecting higher volumes in North America with stabilizing volumes in Europe. The company noted that the growth in its China business is not reflected in the revenue forecast as most of the Chinese business is represented by non-consolidated joint ventures. Automotive Electronics sales are expected to decrease 2.5 to 3 percent, while Interiors sales will be level to down 1.5 percent.

Automotive Experience segment margins are expected to be approximately 4.0 to 4.2 percent reflecting higher volumes, operational improvements, especially in its metals business, and benefits from restructuring actions.

The company also provided mid-term financial guidance through 2018. Automotive Experience revenues are expected to be flat, excluding non-consolidated China, over the mid-term reflecting the impact of lower capital investments in the business and new financial performance hurdles that will lower the number of new vehicle programs the company will pursue. Over the mid-term, Power Solutions revenues are forecast to increase 8 to 9 percent annually due to growth in China, market share gains and an improved product mix.