Green may boost Johnson Controls’ bottom line-Barron’s

NEW YORK, Aug 15 (BestGrowthStock) – Johnson Controls (JCI.N: ),
whose business makes power supply and interior parts for auto
manufacters, could get a boost from its most recent unit that
does the same for buildings, according to an article in
Barron’s Aug. 16 edition.

The company’s fastest growing business has been Building
Efficiency, which makes and services products used for heating,
ventilation, security and lighting large buildings, Barron’s
said. The division took the spotlight when it nabbed the
assignment to bring the 80-year-old Empire State building to
the environmentally friendly realm.

Johnson Controls raised its profile in the area five years
ago when it acquired York International, an independent
supplier of HVACR equipment and services. Revenue and profits
from the building-controls business more than doubled between
fiscal year 2005 and 2009, Barron’s said.

Johnson’s took a wallop during the recession as its revenue
saw its profits swing to a loss of $338 million, or 57 cents
per share for the fiscal year ended September 2009 from a
year-earlier net profit of $979 million or $1.63 per share,
Barron’s said.

Johnson shares closed at $27.37 on the New York Stock
Exchange on Friday. Its stock is valued at about 14 times
forecast earnings of $1.96 for the fiscal year ending Sept.
2010 and 11.5 times for fiscal 2011 estimates of $2.42 per
share, Barron’s said.

Some analysts think the stock could trade up to the mid-30s
next year, Barrons’ said.

(Reporting by Ilaina Jonas; editing by Gunna Dickson)

Green may boost Johnson Controls’ bottom line-Barron’s