DETROIT (Reuters) - Diversified U.S. manufacturer Johnson Controls Inc raised its fiscal-year earnings forecast on Friday after posting a better-than-expected quarterly profit amid a recovery in global vehicle production.
The maker of auto interiors, building-efficiency systems and batteries said higher auto production in North America and Europe boosted shipments of auto seats, interiors and batteries, while its building efficiency business has started to see signs of recovery.
Johnson Controls expects to earn $1.90 to $1.95 per share in its fiscal 2010 year that started in October, up from its previous range of $1.70 to $1.75. Wall Street has forecast $1.85 per share.
"We continue to be encouraged by the steady improvement in the automotive industry," Chief Executive Steve Roell said in a statement.
The company is one of the first auto parts makers to report earnings this quarter and bodes well for other companies due to report in coming weeks as auto production rebounds from a deep downturn and cost cuts made during the recession pay off.
One of the stronger and more diversified auto suppliers, Johnson Controls is also gaining market share from troubled rivals after several large competitors went through bankruptcy in 2009 in the wake of massive production cuts by automakers.
For the second quarter ended on March 31, the company reported net income of $274 million, or 40 cents per share, compared with a year-earlier loss of $193 million, or 33 cents per share.
Excluding one-time items, Johnson Controls earned 43 cents per share. On that basis, analysts on average expected profit of 39 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 32 percent to $8.3 billion, beating Wall Street forecasts of $7.92 billion.
The company also raised its sales forecast for the fiscal year to $33.5 billion from $33 billion.
Sales in the company's automotive unit, which includes seats and interiors, increased 70 percent to $4.2 billion, driven by stronger production volumes in North America and Europe. Sales in the power unit, which makes automotive batteries, rose 30 percent to $1.2 billion.
The building-efficiency segment, which makes heating, ventilating and air conditioning products, saw sales flat at $3 billion. Johnson Controls is retrofitting New York's landmark Empire State Building to reduce energy use.
Johnson Controls shares were up 1.3 percent at $35.75 in premarket trading on the New York Stock Exchange. The stock is up nearly 29 percent so far this year as of Thursday's closing price.
(Reporting by Soyoung Kim; Editing by Lisa Von Ahn and Derek Caney)
