Automotive Experience revenues in the fiscal first quarter of 2014 were $5.8 billion, up 10 percent compared to the 2013 quarter, reflecting higher automotive production in all geographic regions. Automotive industry production in the quarter increased 5 percent in North America, 2 percent in Europe and 14 percent in China. Seating and Interiors sales increased at a double digit rate, while Electronics sales were up 7 percent. Revenues in China, which are primarily related to Seating and generated through non-consolidated joint ventures, increased 33 percent to $1.9 billion.
Automotive Experience segment income was $232 million, more than double the $101 million reported in the first quarter of 2013. The increase was primarily led by improvements in the company's Seating business, with segment income of $176 million in the current quarter, compared with $85 million last year. The Automotive Experience improvement was a result of the higher global production levels, benefits from cost reduction initiatives and improved operational performance in the company's metals and mechanisms business.
Building Efficiency sales in the fiscal first quarter of 2014 were $3.4 billion, 4 percent lower than in the 2013 first quarter as higher revenues in Asia were more than offset by lower demand in Europe, the Middle East and Latin America as well as Global Workplace Solutions. Adjusted for divestitures and currency, backlog was down 1 percent compared to the first quarter of last year at $5.0 billion. Orders were 5 percent higher than last year representing the third consecutive quarter of year-over-year improvement.
Segment income of $146 million was down 15 percent compared with $172 million the 2013 first quarter. The 2013 first quarter benefitted from non-recurring contract settlements while the current quarter includes contract-related charges of approximately $20 million. Excluding these items, underlying Building Efficiency earnings increased 6 percent.
Power Solutions sales in the first quarter of 2014 increased 6 percent to $1.8 billion versus $1.7 billion in the 2013 quarter. Global original equipment battery shipments increased 12 percent, while aftermarket unit shipments were up 1 percent. In the quarter, the company increased its ownership in a South American battery joint venture, resulting in a $19 million non-recurring gain. Power Solutions segment income was $308 million, up 12 percent, compared with $276 million in the first quarter of 2013, as a result of the higher volumes, improved mix of products, vertical integration and the joint venture gain.
Johnson Controls said it expects earnings per share of $0.64 - $0.66 in the second quarter of fiscal 2014. The company also reaffirmed its guidance for earnings of $3.15 - $3.30 per share, free cash flow of $1.6 billion and segment margin improvements in all three of its businesses for the full 2014 fiscal year.
"Much of the improvement we have forecast for fiscal 2014 is based on activities within our control. Our first quarter results demonstrate that we are on track to deliver on the expectations we have set," said Molinaroli. "We remain focused on operational improvements to drive continued increases in profitability and shareholder value and expect 2014 to be a year of record sales and earnings for Johnson Controls."
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