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Co issues in-line guidance for FY14 (Sep), sees EPS of $3.15-3.30 vs. $3.30 Capital IQ Consensus Estimate; sees FY14 (Sep) revs of $43.8 bln vs. $43.85 bln Capital IQ Consensus Estimate.
•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.
•Based on those market assumptions, 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.
•Mid-term financial outlook (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. Margins are expected to expand an average of 40 to 50 basis points annually to approximately 7 percent due to the benefits of vertical integration, operational improvements and commercial disciplines.
•"We are focused on market leadership in our core businesses and driving sustainable performance where we believe we can win...This is reflected in our expectations for a successful 2014 as well as the positive outlook we have provided through 2018. Johnson Controls has a heritage of consistent execution and innovation and today we will outline our plans to leverage that foundation to maximize shareholder value and continue to build our strategic position."