Johnson Controls beats by $0.01, reports revs in-line; JCI to pursue tax-free spin-off of Automotive Experience business
Reports Q3 (Jun) earnings of $0.91 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues fell 2.3% year/year to $9.61 bln vs the $9.67 bln consensus.
- Johnson Controls also announced that it plans to pursue a tax-free spin-off of its Automotive Experience business. Following the separation, which is expected to close in approximately 12 months, the Automotive Experience business will operate as an independent, publicly traded company. Once the transaction is completed, Bruce McDonald, Johnson Controls vice chairman and executive vice president, will serve as the chairman and CEO of the new company. Beda Bolzenius will serve as president and chief operating officer. As part of the spin-off preparation, Johnson Controls is initiating a comprehensive cost savings program.