Johnson Controls Shares Soar - TheStreet

(Story updated to include stock price movements.)

MILWAUKEE, Wis.(

TheStreet

) --

Johnson Controls

(JCI) - Get Report

stock is surging after the company announced that it swung to a profit in the first quarter because of a stronger business portfolio.

Johnson Controls has risen 4.1% to $30.

Johnson Controls reported net income of $350 million, or 52 cents a share, compared with a loss of $608 million, or $1.02 cents, in the same quarter last year.

The company reported $8.4 billion in sales, vs $7.3 billion last year.

A survey of analysts by Thomson Reuters estimated earnings of 29 cents a share on revenue of $7.5 billion.

The company said its first-quarter earnings were driven by a diversified business portfolio.

"Record Q1 segment income and net income

were driven by double-digit revenue growth," Johnson Controls said in a statement.

The company also mentioned market improvements and share gains, good conversion to higher automotive volumes, and benefits from cost reduction initiatives taken over the past year.

The company is cautiously optimistic about auto productionin the second half of 2010 because of uncertainties around consumer demand. However, Johnson Controls believes that strong growth in China will continue. The company also predicts improved profitability in its power solutions segment because of increased volume.

Johnson Controls' updated auto-production assumption is 10.3 million vehicles.

The company is increasing its full-year 2010 EPS guidance to $1.70 to $1.75 a share from a previous forecast of $1.35 to $1.45 a share.

Auto-supplier stocks are trading in mixed territory Friday morning.

Magna International

(MGA) - Get Report

stock has edged up 0.5% to $57.30 and

BorgWarner

(BWA) - Get Report

stock is down 0.2% at $36.80.

Autoliv

(ALV) - Get Report

stock has inched lower at $41.90, down 0.1%.

-- Reported by Andrea Tse in New York

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