Johnson Controls sees high earnings...

Shares of Johnson Controls Inc. surged 4% Monday to an all-time high after the company reported record earnings for the 15th straight year.

The Glendale-based company said Monday that its fourth-quarter net income rose by 4.7% to $283.8 million, or $1.45 per share, from $271 million, or $1.41 per share, a year ago. Sales rose by $500 million, or 7%, in the quarter to $6.9 billion.

The quarterly results underscored the contribution to profits from the company's battery and controls business, now known as power solutions and building efficiency, respectively.

Johnson Controls said operating income was up 79% in the Glendale-based power solutions business and 40% in the Milwaukee-based building efficiency unit, offsetting a 13% decline in operating income at the Michigan-based seats and interiors unit, now known as interiors experience.

"We believe many of the trends evident in this quarter will continue into 2006," said John Novak, an auto-parts sector analyst at Morningstar Inc. in Chicago. "The power solutions and building efficiency divisions should do well, and problems at Detroit's Big Three and raw-material cost pressures could hurt results in auto interiors."

For the first quarter of fiscal 2006, which ends Dec. 31, Johnson Controls said it anticipates sales of $6.8 billion and earnings per share from continuing operations of 82 to 85 cents a share.

Johnson Controls executives have been trying to emphasize to investors and observers that they are less sensitive to the automotive industry's current travails than most other suppliers.

The company on Monday reiterated its projection two weeks ago that the company's earnings will rise 13% to 17% in the fiscal year that began Oct. 1.

"When you look at our 2006 outlook, there's no question that we continue to operate like a growth company - I would add a multi-industry growth company," John Barth, chairman and chief executive officer, said during a conference call with analysts. "We have three very solid businesses that I think are well positioned."

In the quarter, Johnson Controls sales grew in all of its three segments. That included 4% in automotive seats and interiors and a 5% gain for building efficiency, led by strong growth in the North America new construction market, said company vice president Denise Zutz. The power solutions business saw sales growth on its own, but most of its 37% gain was the contribution of the battery business it bought this year from Delphi Corp.

Johnson Controls' shares traded as high as $69.99 before closing at $68.50, up $2.63. The company's return to shareholders is 27% over the past 12 months.

An adjustment to settle a claim concerning the sale earlier this year of the World Services business and its engine electronics business to Valeo reduced earnings by $8.7 million, Johnson Controls said.

Earnings from continuing operations were $293 million, or $1.50 per share, up from $255 million, or $1.31 per share, a year ago.

On that basis, the fourth-quarter results were 1 cent higher than projections of analysts surveyed by First Call/Thomson Financial.

For the full year, sales rose nearly 9% to $27.9 billion, while net income rose 11% to $909 million, or $4.68 per share. Johnson Controls has more sales than any other Wisconsin-based firm.

The company said it expects that its $3.2 billion acquisition of York International will be completed in December.

The deal has won the approval of U.S. antitrust regulators, and approval in Europe is expected next month, said Bruce McDonald, chief financial officer.

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