Milwaukee, Wisconsin -- Johnson Controls Inc. said net income was $571 million in the third quarter of fiscal 2013, in a statement.
Income was up 32% compared with the same quarter in 2012. Sales were up 2%to $10.8 bn. The 2013 quarter includes non-recurring tax benefits of $140m which were partially offset by pre-tax restructuring charges of $143m ($104m after-tax) related primarily to severance costs and asset impairments, The 2012 third quarter included pre-tax restructuring charges of $52m, partially offset by non-recurring tax benefits of $22m.
Johnson Controls said it saw "double-digit improvements in segment income in all three businesses. The European automotive business was profitable in the quarter," the company said.
"We are pleased with the significant improvement in profitability of all three businesses in the third quarter. Our initiatives to reduce costs and improve operational efficiencies continue to gather momentum and deliver margin expansion," said Stephen Roell, Johnson Controls chairman and chief executive officer.
"Despite a challenging production environment, our European automotive business generated a profit in the quarter and profitability improved in our automotive Metals business. Cash flow in the quarter was very strong, enabling us to reduce net debt by more than $550m.
In the automotive experience segment in Q3 2013 were up 4% to $5.7bn. Higher levels of car production in North America and Asia was partially offset by lower volumes in Europe. Automotive industry production in the quarter increased 6% North America and fell by 1% in Europe.
Revenues in China, which are primarily related to seating and generated through non-consolidated joint ventures, increased 23% to $1.4 bn.
Johnson Controls said it believes the automotive production environment for the remainder of the year is positive with the Chinese market remaining strong, North American continuing to improve and Europe showing signs of stabilization.
The Company also said it expects strong free cash flow generation from operations to continue and anticipates that its fourth quarter net debt reduction will be approximately $600 to $650 million, excluding divestiture proceeds.
