Johnson Controls has boosted its full-year earnings forecast to $1.90 to $1.95 a share from the earlier guidance of $1.70 to $1.75 a share and expects net sales to increase to $33.5 billion from the previous guidance of $33 billion.
"We continue to be encouraged by the steady improvement in the automotive industry and therefore have increased our earnings outlook for 2010," Johnson Controls chief executive Stephen Roell, said in a written statement.
Johnson Controls on Friday reported second quarter net income of $274 million, or 40 cents a share vs. a $193 million or 33 cents-a-share loss a year ago. Net sales were $8.3 billion, up 32% from the previous year. The company said earnings adjusted for non-recurring items were 43 cents, beating the consensus estimate of 39 cents a share on revenue of $7.92 billion.
For the second quarter, Johnson Controls reported a double-digit increase in sales with each of the company's businesses reporting higher profitability.
S&P has reiterated its strong buy opinion on Johnson Controls stock.
"We expect a modest drag on sales and profits from the weaker Euro against the dollar, but this should be more than offset by growth from all segments and most regions," S&P analyst Efraim Levy said in an investor note. "China sales and profits should rise, but this should be largely reflected in the equity income line."
Also noteworthy: "we liked Johnson Controls," Jim Cramer said on his
-- Reported by Andrea Tse in New York
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