Automotive Seating 2013 sales are forecast to gain approximately 2 percent, reflecting higher production volumes in North America, partially offset by the lower production environment in Europe. Segment margins are expected to be approximately 4.2 to 4.4 percent in 2013 as the negative impact of lower European production offsets improvements in operational efficiency and the benefits from recent cost reduction initiatives.
Automotive Electronics and Interiors 2013 sales are projected to increase approximately 2 percent, reflecting higher volumes in Asia, partially offset by lower electronics sales in Europe. Operating leverage and operational improvements, offset by investment in electronics product development are forecast to result in margins of approximately 1.9 to 2.1 percent in 2013.
The combined automotive backlog for 2013 to 2015 is $3.7 billion, approximately level with the 2012 to 2014 period due to a lower assumed auto production rate in Europe.
Power Solutions 2013 sales are estimated to increase approximately 10 to 12 percent due to higher battery volumes across all regions and channels, led by higher production in China, market share growth and increasing market demand for AGM batteries which are used in Start-Stop vehicles. 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.Building Efficiency sales are forecast to increase 2 to 4 percent in 2013 due to growth in emerging markets and a moderate recovery in North America Systems and Service. Segment margins are expected to increase approximately 50 basis points to 6.4 to 6.5 percent in 2013, due to improved operating leverage, pricing actions and the benefits of earlier cost reduction initiatives. Johnson Controls expects to make capital investments of $1.4 billion in 2013 vs. $1.8 billion in 2012. Approximately 80% of the company's capital expenditures in 2013 are associated with growth and margin expansion opportunities. The higher capital expenditures focus on increased manufacturing capacity for AGM batteries and on expansion in emerging markets. The increased investments also will support a higher level of Automotive Experience new business launches in 2013. Mid-Term Financial Outlook (Through 2017) Today, Johnson Controls also provided mid-term margin guidance for each of its four businesses.
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