NEW YORK (TheStreet) -- Shares of Johnson Controls (JCI) are higher by 5.68% to $54.49 on heavy volume in late morning trading on Wednesday, after the diversified tech company announced it is looking into the possibility of separating its automotive business.
"Today's announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders," company CEO Alex Molinaroli said in a statement.
The company's automotive experience business is one of its three operating segments. Through this business Johnson Controls designs and manufactures door panels, seats for cars and light trucks, and other products, The Wall Street Journal reports.
The company is the largest seat maker in the world and the unit brought in $17.5 billion in sales last year, The Journal noted.
Johnson Controls has "no specific timetable" for the complication of its strategic review. The company said it is looking into a "full range" of strategic options for the automotive business but didn't go into detail about what those options are.
Goldman Sachs and Centerview Partners are serving as the company's financial advisors for the review.
Separately, TheStreet Ratings team rates JOHNSON CONTROLS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOHNSON CONTROLS INC (JCI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."