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Raw-material costs put squeeze on JCI.(News)(Johnson Controls Inc. )(Interview)
Crain's Detroit Business, January, 2005
Johnson Controls Automotive Group is one of the largest tier-one suppliers, but it faces the same pricing and raw-materials pressures that squeeze smaller suppliers. Still, the Plymouth-based company has won new business in new markets and sees a growth opportunity with gasoline-electric hybrid vehicles.
President Keith Wandell discussed these issues during the North American International Auto Show with Automotive News, a sister publication of Crain's. Sales at the automotive group rose about 20 percent to $20.5 billion in fiscal 2004 ended Sept. 30, while operating income rose 15 percent to about $1 billion. It looks like 2005 will be a solid year, and it looks like the result will be wider margins partially offset by higher legacy costs. What are you...
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