Johnson Controls Shares Surge After Announcing Plans To Separate Automotive Business

Johnson Controls Inc.'s stock surged 6.7% in premarket trade Wednesday, after the company said it was exploring options for the separation of its automotive business. Johnson Controls said it has retained Goldman Sachs and Centerview Partners as financial advisors. The company said it didn't have a specific timetable to complete the review process. "Today's announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders," said Chief Executive Alex Molinaroli. In the quarter ended March 31, the company's automotive experience business recorded revenue of $5.2 billion, or 57% of the total revenue.