Johnson Controls Inc. says its profit more than doubled, buoyed by a surge in automotive production and rising demand for lead-acid batteries sold by auto parts stores.
The Glendale company reported fiscal third-quarter earnings Friday, excluding unusual charges and gains, of $367 million, or 54 cents a share, up from $157 million, or 25 cents, a year ago.
The results disappointed investors after analysts surveyed by Bloomberg News had projected earnings would be a penny per share higher. The company's shares closed down 4.5% or $1.37, at $29.11.
A pullback in the shares represents a buying opportunity for investors, said David Leiker, auto industry analyst at Robert W. Baird & Co., Milwaukee.
In a research note, he said company executives' optimism about the prospects for the Milwaukee-based building efficiency business, which saw its first year-over-year growth in sales in more than a year.
"They are very bullish about the positive trajectory of the business over the next 3-4 years and willing to make these investments" to expand the sales force of the building efficiency business and its focus on clean-technology and energy-efficiency initiatives for customers, Leiker wrote.
The company, which is Wisconsin's largest corporation based on sales, said it posted a 22% increase in revenue from a year ago, with sales climbing by $1.5 billion to $8.5 billion.
