Johnson Controls Announces 2008 Fourth-Quarter Restructuring Charge
MILWAUKEE, Sept. 3 /PRNewswire-FirstCall/ -- To better align its resources with its growth strategies while reducing the cost structure of its global operations, Johnson Controls, Inc. today announced it plans to initiate restructuring activities which will result in an estimated pre-tax charge of $450 to $500 million in its 2008 fourth quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070930/AQSU001LOGO) The restructuring charge relates to cost reduction initiatives in its automotive experience, building efficiency and power solutions businesses and includes workforce reductions and plant consolidations. The company expects to substantially complete the initiatives by early 2010. The automotive-related restructuring is in response to the fundamentals of the European and North American automotive markets. The actions target reductions in the company's cost base by decreasing excess manufacturing capacity due to lower industry production and the continued movement of vehicle production to low-cost countries, especially in Europe. The restructuring actions in Building Efficiency are primarily in Europe where the company is centralizing certain functions and rebalancing its resources to target the geographic markets with the greatest potential growth. Power Solutions actions are focused on optimizing its regional manufacturing capacity. Johnson Controls said it expects the restructuring plan will improve its long-term growth prospects in its highly competitive global markets. The company's fourth quarter ends on September 30, 2008. Johnson Controls will report earnings on October 23, 2008. The company will hold an analyst conference call to discuss the restructuring plan on Wednesday, September 3, 2008, from 8:30 to 9:00 a.m. Eastern time. A live webcast of the call, as well as a recorded archive, can be accessed at http://www.johnsoncontrols.com/. Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit http://www.johnsoncontrols.com/. Johnson Controls, Inc. ("the Company") has made forward-looking statements in this document pertaining to its financial results for fiscal 2008 and beyond that are based on preliminary data and are subject to risks and uncertainties. All statements other than statements of historical fact are statements that are or could be deemed forward-looking statements and include terms such as "outlook," "expectations," "estimates," or "forecasts." For those statements, the Company cautions that numerous important factors, such as automotive vehicle production levels, mix and schedules, financial distress of key customers, energy prices, the strength of the U.S. or other economies, currency exchange rates, cancellation of commercial contracts, the ability to execute on restructuring actions according to anticipated timelines and costs as well as other factors discussed in Item 1A of Part II of the Company's most recent Form 10-Q filing (filed August 8, 2008) could affect the Company's actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, the Company.
Photo: http://www.newscom.com/cgi-bin/prnh/20070930/AQSU001LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
SOURCE: Johnson Controls, Inc. CONTACT: investors, Glen L. Ponczak, +1-414-524-2375, or media, Monica
Levy, +1-414-524-2695, both for Johnson Controls, Inc. Web site: http://www.johnsoncontrols.com/ Company News On-Call: http://www.prnewswire.com/comp/473547.html |
