JCI Closes HomeLink Sale to Gentex - Analyst Blog
30 Settembre 2013 - 9:05PM
Zacks
Johnson Controls Inc. (JCI) completed the
divestiture of its HomeLink business to Zeeland, MI-based
Gentex Corp. (GNTX). Johnson had announced its
intentions of selling the entire automotive electronics business
earlier this year, following which, the sale of HomeLink business
was announced in July.
HomeLink is a vehicle-based control system, which helps drivers to
trigger garage door openers, entry door locks, home lighting,
security systems, entry gates, and other radio frequency
convenience products from a distance. Gentex’s automatic-dimming
rearview mirrors have been using the HomeLink system for about 10
years.
The purchase consideration, including adjustments of all HomeLink
assets, intellectual property and testing facilities, amounted to
$700 million.
Johnson Controls’ plan of selling the rest of its automotive
electronics business is progressing well, with a high interest from
many strategic buyers. The company expects that it will complete
the bid of selling the process by the end of 2013.
Johnson Controls posted a roughly 18% rise in profits to $535
million or 78 cents per share in the third quarter of its fiscal
year ended June 30, 2013 from $455 million or 66 cents in the
comparable quarter of prior year, all excluding non-recurring
items. With this, earnings per share beat the Zacks Consensus
Estimate as well as the management’s own expectation by 3
cents.
Johnson Controls believes that double-digit rise in segment income
in all three businesses and quarter-over-quarter improvements in
earnings in the company’s automotive business in Europe are the
main factors behind earnings growth in the quarter.
Revenues in the quarter rose 2% to $10.8 billion during the
quarter. However, it missed the Zacks Consensus Estimate of $11.0
billion.
Johnson Controls is a supplier of automotive interiors, batteries
and other control equipment. Gentex Corporation is a supplier of
high-quality products to the worldwide automotive industry and
North American fire protection market. The company develops
proprietary electro-optic products. Currently, both Johnson
Controls and Gentex retain a Zacks Rank #3 (Hold).
Other stocks that are performing well in the industry where JCI
operates include Fuel Systems Solutions, Inc.
(FSYS), and American Axle & Manufacturing Holdings
Inc. (AXL). Both the companies carry a Zacks Rank #1
(Strong Buy).
AMER AXLE & MFG (AXL): Free Stock Analysis Report
FUEL SYSTEM SOL (FSYS): Free Stock Analysis Report
GENTEX CORP (GNTX): Free Stock Analysis Report
JOHNSON CONTROL (JCI): Free Stock Analysis Report
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