Milwaukee, Wisconsin - Johnson Controls Inc.'s Automotive Experience business reported a 'significant' drop in income in the second quarter of fiscal 2013, ended the 31March, totalling $103 million, a 21% decrease year-on-year.
Automotive Experience sales in the second quarter were $5.4 billion, down 3% compared to the previous year. JCI said the profitability of all three automotive segments - seating, interiors and electronics - with impacted by the low level of European production. Higher revenue in North America was more than offset by lower sales in Europe, the company said. Automotive industry production in the quarter increased 1% in North America and declined 8% in Europe.
Revenues in China, which are primarily related to seating and generated through non-consolidated joint ventures, increased 31 percent to $1.3 billion, JCI said.
In the seating segment, income in the quarter was $98 million, down significantly versus fiscal 2012, primarily due to operational costs and lower European volumes, JCI said in the 23 April report.
The interiors business, which includes instrument panels, floor consoles and headliners, reported a $19 million loss in the quarter, mainly due to lower volumes in Europe.
JCI said it anticipates improved profitability in its Automotive Experience division in the second half of fiscal 2013, led by better operational performance in its European and South American businesses, as well as the benefits of its restructuring programme in Europe.
Commenting on the business as a whole, Johnson Controls CEO Stephen Roell said, "Despite a challenging global market, we anticipate stronger profitability in the second half of fiscal 2013 consistent with market expectations.Our second half results will reflect restructuring benefits and improved operating performance."
