Johnson Controls

General Company Overview

Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is headquartered in Milwaukee, Wisconsin.

Fiscal 2005 was the 59th consecutive year of sales increases, the 15th consecutive year of earnings increases and the 30th successive year of dividend increases. Dividends have been paid consecutively since 1887.

Year Ended
September 30, 2005 2004

(in millions, except per share data)

Sales$27,883$25,363

Income from
continuing operations*$856.5$729.2

Diluted earnings per share,
continuing operations*$4.41$3.79

Employees: approximately 120,000 worldwide and 2,500 in Milwaukee. 1-Year Employee Growth: 4.2%

Vice President and Corporate Controller: Jeffrey G. Augustin
Chairman and Chief Executive Officer: John M. Barth

Johnson Controls embraced Six Sigma in 2000 as another step toward fulfilling its mission: To exceed its customers' increasing expectations. It is now an integral part of company’s culture of continuous quality improvement.

Areas of business at Johnston Control

Interior experience

  • Global market leader in interior systems for light vehicles including passenger cars and light trucks.
  • Systems supplied include seating, overhead, door, instrument panels, storage, electronics.
  • Customers include every major automobile manufacturer globally.
  • All systems are sold to the original equipment automotive market.
  • 250 locations worldwide.

Power solutions

  • World’s largest manufacturer of lead acid automotive batteries.
  • 80% of batteries sold through the automotive aftermarket. 20% are sold as original equipment.
  • Major customers include Advance Auto, AutoZone, Costco, DaimlerChrysler (11% of sales), Ford (11%)., General Motors (14%), Honda, Interstate Battery System of America, John Deere, Mazda, Nissan, Sears, Toyota and Wal-Mart.
  • Developing advanced battery chemistries for hybrid vehicles
  • 27 locations worldwide.

Building efficiency

  • Leader in supplying systems to control heating, ventilating, air conditioning (HVAC), lighting, security and fire management for buildings. Services include complete mechanical and electrical maintenance. World leader in integrated facility management providing facility management and consulting services for many Fortune 500 companies. The company manages more than one billion square feet worldwide.
  • Customers worldwide include education, healthcare, industrial, government and office buildings.
  • 300 locations worldwide.

Challenges

Despite challenges in the automotive industry Johnson Control sales increasing thanks to company’s employees around the world and their dedication and outstanding performance

Top Competitors

  • Exide
  • Lear
  • Magna International

In the News

1. DETROIT, MICHIGAN. (Jan 8, 2006) - When it comes to providing fresh content at a lower cost, Johnson Controls is looking up literally. The company is unveiling the Perimeter Overhead System concept - its future vision of vehicle overhead systems - at the 2006 North American International Auto Show (NAIAS) this week in Detroit. The Perimeter Overhead System features a sturdy plastic trim that frames the headliner of a vehicle, allowing designers to make the most of overhead space. A totally new approach to overhead systems, the concept offers more flexibility in product design and content. The plastic trim expands component integration and location opportunities, allowing designers more freedom when integrating consumer-use points. This concept from Johnson Controls is among the dozens of innovations being highlighted at the company's NAIAS product and technology exhibit in room D2-15 of Detroit's CoboCenter. (

2. MILWAUKEE, WISCONSIN, December 9, 2005- Johnson Controls, Inc. (JCI) today announced that it has completed its acquisition of York International, a global supplier of heating, ventilating, air-conditioning and refrigeration (HVAC&R) equipment and services.

The closing followed approval of the acquisition by York shareholders earlier today. Johnson Controls is paying York shareholders $56.50 for each outstanding share of common stock. The total value of the acquisition is approximately $3.2 billion.

York, with estimated annual revenues of nearly $5 billion, will become part of the Johnson Controls building efficiency business, which generated sales of $5.7 billion in 2005. The combined business will serve customers in 125 countries from over 700 locations. (