JCI Commences Production in Hungary - Analyst BlogMonday, April 16, 2012
Johnson Controls Inc. (JCI) has launched production at its new manufacturing plant in Kecskemet, Hungary. The plant will supply complete seating systems for Daimler’s (DDAIF) new Mercedes-Benz B-Class. The company will produce seating systems for the first and second seat row of the car.
The plant provides employment to 130 people. The company plans to add 70 jobs at the plant with the inclusion of a second shift.
Keeping the quality control aspect in mind, the company will provide intensive training to the employees in the Labour Center of Kecskemét and the Türr István Training and Research Institute. The new plant raised the total number of employees of Johnson Controls in Hungary to 2,500.
Johnson Controls Automotive Experience has been in operation in Hungary since 2007. The company produces metal seating components in Mezolak and Mor plants, while it manufactures leather covered car interior components in Seton, located in Papa.
Johnson Controls is a supplier of automotive interiors, batteries and other control equipment. The company is a leading provider of automotive systems as well as facility management and control services, employing about 162,000 people worldwide. Its customers are spread in more than 150 countries.
Johnson Controls recorded a 9% increase in profit to $410 million or 60 cents per share in the first quarter of fiscal 2012 compared with $375 million or 55 cents per share in the corresponding quarter of last year. The profit was lower than the Zacks Consensus Estimate by 2 cents per share. The increase in profit was attributable to higher earnings in Power Solution and Automotive Experience segments.
Revenues in the quarter augmented by 9% to $10.4 billion compared with $9.5 billion in the same quarter last year. The improvement was attributable to backlogs in the automotive and building markets.
However, revenues were marginally lower than the Zacks Consensus Estimate of 10.5 billion. Currently, Johnson Controls retains a Zacks #3 Rank on its stock, which implies a Hold rating for the short-term.
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