Johnson Controls revenue rises on higher demand from China


U.S. auto parts maker Johnson Controls Inc reported a 3 percent rise in quarterly revenue, as demand rose for its car seats, and the company said it expected its cooling and heating systems business to return to growth in the current quarter.

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Shares of the largest U.S. auto parts maker, whose customers include Toyota Motor Corp and General Motors, rose 1.5 percent before the bell.

Demand in Johnson Controls' automotive business, its largest, was driven mainly by China, which contributed about 32 percent to the division's third-quarter revenue of $5.7 billion.

Revenue from the company's cooling and heating systems business fell 4 percent due to lower demand from the Middle East and North America.

Johnson Controls said it expected low single-digit revenue growth in the business in the fourth quarter ending Sept. 30.

"The overall non-residential heating ventilation and air conditioning markets remain challenged, but we are starting to see some increased demand in certain vertical markets," Chief Executive Alex Molinaroli said in a statement.

Johnson Controls forecast earnings of $1.00-$1.02 per share for the current quarter. Analysts on average were expecting $1.01 per share, according to Thomson Reuters I/B/E/S.

Excluding items, Johnson Controls earned 84 cents per share in the third quarter ended June 30, up from 72 cents per share, a year earlier.

Total revenue rose to $10.8 billion from $10.5 billion, a year earlier.

Milwaukee, Wisconsin-based Johnson Controls' shares closed at $49.88 on the New York Stock Exchange on Thursday.