Johnson Controls posts 4Q profit

MILWAUKEE -- Johnson Controls Inc. said Tuesday that cost cuts and operational improvements bolstered its profit in the fourth quarter, helping to offset the effects of the continued weak economy on its sales.

The Milwaukee company, which makes both automotive and building systems, posted a profit of $300 million, or 47 cents per share, compared with $16 million, or 3 cents per share, a year ago.

Last year's results included $495 million in restructuring charges related to the consolidation of facilities, job cuts and other cost-cutting actions .

The 2009 quarter's profit included pretax charges of $105 million related to a warranty charge in the residential HVAC business and $111 million for costs stemming from a debt exchange offer. It also included an income tax benefit of $114 million.

Excluding items, Johnson Controls earned 52 cents per share, topping analysts estimates by a penny. The profit was also consistent with the company's guidance issued earlier this month.

Sales fell 16 percent, to $7.87 billion, beating average predictions of $7.83 billion.

The drop included a 14 percent decrease in automotive division sales, but the company said the business returned to profitability during the quarter as a result of an improved cost structure.

Johnson Controls also affirmed its 2010 profit and sales outlook, citing higher global automotive production forecasts and the resumption of higher growth rates in global emerging markets.