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Johnson Controls Heats Up

It beats the quarter and raises guidance.
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Johnson Controls (JCI) - Get Johnson Controls International plc Report beat second-quarter estimates and raised its earnings target for the full year.

The Milwaukee-based air conditioning giant made $262 million, or $1.31 a share, from continuing operations for the quarter ended March 31, up from the year-ago $162 million, or 83 cents a share. Excluding a 19-cent latest-quarter tax benefit, earnings were $1.12 a share, 6 cents ahead of the Thomson Financial analyst consensus estimate.

Revenue rose to $8.49 billion from $8.17 billion a year earlier, surpassing the $8.41 billion analyst estimate.

"Building efficiency and power solutions had strong quarters, and with improved performance in automotive experience since earlier this year, we achieved strong double-digit earnings growth," said CEO John Barth.

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Johnson Controls also boosted guidance, saying it now expects earnings per share from continuing operations to increase 19% to 20%, to $6.25 to $6.30, excluding the second-quarter nonrecurring tax benefit. In October 2006, Johnson Controls had forecast that its diluted earnings per share from continuing operations for fiscal 2007 would increase 14% to approximately $6.

The change reflects the lower base effective tax rate of 21% and improved operational efficiencies. The company also raised its revenue guidance for the year from $34 billion to approximately $34.5 billion.