Johnson Controls to cut jobs, close plants

Source: Manufacturing Digital

Date :9/3/2008 6:41:33 AM

Auto-parts maker Johnson Controls Inc is to cut jobs, close plants and take a fourth quarter charge as its automaker customers continue to roll out fewer cars and shift vehicle production to low-cost countries.

Johnson Controls shares dipped two percent to US$30.79 following the release on Wednesday, September 3. The shares are down 18 percent in the past year, as the record high gas prices and persistent US housing slump hit companies.

Milwaukee-based Johnson Controls did not specify the number of job cuts or which plants would be closed but said the restructuring is expected to result in a fourth-quarter pre-tax charge of US$450 million to US$500 million.

The restructuring will be completed by early 2010, the company added.

Along with car batteries and other interior auto parts, Johnson Controls makes energy-efficient heating, ventilating and air-conditioning systems for commercial buildings.