Johnson Controls Sees 2016 Sales Rising Above Expectations

By Tomi KilgoreMarketWatch Pulse

Johnson Controls Inc. said on Tuesday it expects fiscal 2016 sales to rise 4% above 2015 levels to $38.6 billion, which is above the FactSet consensus of $37.27 billion, boosted by strength in its building efficiency and power solutions businesses. The diversified industrial company said it expects earnings per share for the year ending September 2016 in the range of $3.70 to $3.90, compared with the FactSet consensus of $3.86. The company said the spin off of its automotive business is progressing as planned for a target date of Oct. 3, 2016. "We expect higher revenues and record profitability in fiscal 2016 as we manage through the significant work required to split into two world-class companies after the end of this fiscal year," said Chief Executive Alex Molinaroli. The stock, which was still inactive in premarket trade, has lost 4.8% year to date, while the S&P 500 has gained 1%.

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