NEW YORK Johnson Controls Inc. (JCI) expects higher
sales and margins next year, including in its lead recycling
and battery manufacturing division, on slightly higher
2013 automotive production in North America.
The Milwaukee-based company forecast net sales across all
divisions of about $43.5 billion for 2013, up 3 to 4 percent
The Power Solutions division, which comprises its lead
recycling and battery manufacturing operations, is expected to
yield a sales increase of 10 to 12 percent in 2013 due to
higher battery volumes across all regions and channels, led by
higher production in China, market share growth and increasing
market demand for absorbent glass mat (AGM) batteries used in
start-stop vehicles, the company said.
Segment margins are expected to be approximately 14.6 to
14.8 percent in 2013, led by operating leverage, an improved
product mix and continued operational improvements, offset by
lead recoveries, it added.
JCI chief financial officer Bruce McDonald had said in October
that higher scrap battery acquisition costs had created a
financial headwind for much of 2012, particularly
with the company building inventory for its new battery
recycling plant in Florence, S.C. (
amm.com, Oct. 31
Meanwhile, the company on Wednesday estimated 2013 capital
expenditures at $1.4 billion, down from $1.8 billion in 2012.
Some 80 percent of that is associated with growth and margin
expansion opportunities, including increased
manufacturing capacity for AGM batteries and on expansion in
emerging markets, JCI said.
In addition to forecasting slightly higher 2013 automotive
production in North America, JCI estimated the global
automotive backlog at $3.7 billion.
While we recognize the challenges of the near-term global
economy, we believe our unique strengths will enable Johnson
Controls to outperform our underlying markets, chief
executive officer Stephen Roell said in a statement.