Business News

Johnson Controls explores strategic options for automotive business

JCI... Why now?: Cramer
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JCI... Why now?: Cramer

Johnson Controls is exploring strategic options for the separation of its automotive business to focus on high-margin heating and cooling businesses.

Shares of Johnson Controls were up 4.6 percent at $53.95 in premarket trading on Wednesday. (Get the latest quote here.)

The automotive business, which makes seating and interiors for vehicles, accounted for 52 percent of sales of $42.83 billion in 2014.

The heating, ventilating and air conditioning systems business contributed 33 percent to total sales last year, while power solutions, which makes lead-acid auto batteries, accounted for 15 percent.

The automotive business reported just 1 percent growth in revenue, excluding the impact of dollar, in the second quarter ended March 31.

The company said it had no specific timetable for the completion of the review, which includes a range of strategic options for the automotive business.

Goldman Sachs and Centerview Partners are the financial advisers on the review.

Up to Tuesday's close of $51.56 on the New York Stock Exchange, Johnson Controls' stock had risen about 7 pct this year.