It's been a confusing year for investors in Johnson Controls (NYSE: JCI )
. The company is best known for its automotive products (mainly
batteries and car interiors), and the automotive industry has been an
outperformer recently within the industrial sector. In turn, the company
has outperformed its peers, and its own expectations, with its
automotive experience (car interiors and seating) segment. However, the
stock is down nearly 7.5% year to date. Clearly, management needed to
explain a few things during its third-quarter conference call, and here
is what they said.
Before diving into the conference call, let's take a look at this chart, which depicts Johnson Controls' three segments by income for the first three quarters of its fiscal year.
Source: Johnson Controls company presentations.
Automotive experience (seats and interiors) and power solutions (automotive batteries, of which roughly three-quarters go to the aftermarket) make up the bulk of profit, but the company is investing in its building efficiency (heating, ventilation, and air conditioning, or HVAC) segment in order to diversify its income stream. More on that later.
READ THE FULL ARTICLE LINKED HERE
Cautiously optimistic on building efficiency
Before diving into the conference call, let's take a look at this chart, which depicts Johnson Controls' three segments by income for the first three quarters of its fiscal year.
Source: Johnson Controls company presentations.
Automotive experience (seats and interiors) and power solutions (automotive batteries, of which roughly three-quarters go to the aftermarket) make up the bulk of profit, but the company is investing in its building efficiency (heating, ventilation, and air conditioning, or HVAC) segment in order to diversify its income stream. More on that later.
READ THE FULL ARTICLE LINKED HERE
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