Investors in Johnson Controls have watched their stock decline by nearly 14% this year, even as the
company has outperformed expectations in one of its three segments
(automotive experience) and made a host of initiatives to improve
productivity. With that said, you might be wondering just why the
company has declined in 2014. Let's take a look.
Source: Johnson Controls
Great Expectations
No, not a treatise on Charles Dickens, but a lead-in to what has happened this year with the company. Simply put, at the start of the year, investors had expected positive things from its three segments:
Fast-forward to what actually happened, and it's a mixed story.
READ THE FULL EQUITY RESEARCH ARTICLE LINKED HERE
Source: Johnson Controls
Great Expectations
No, not a treatise on Charles Dickens, but a lead-in to what has happened this year with the company. Simply put, at the start of the year, investors had expected positive things from its three segments:
- Power solutions (automotive batteries) was expected to have a strong winter thanks to severe cold weather in North America.
- The building efficiency (heating, ventilation, and air-conditioning, or HVAC) segment was expected to see a pickup in demand from a long-anticipated improvement in North American construction activity.
- Automotive experience (car seating and interiors) looked set to have a good year as North America and China automotive sales and production looked likely to remain in growth mode.
Fast-forward to what actually happened, and it's a mixed story.
READ THE FULL EQUITY RESEARCH ARTICLE LINKED HERE
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