The Zacks Analyst Blog Highlights: Johnson Controls, Magna International,
Honeywell International, Exide Technologies and Boeing
CHICAGO, Dec. 12, 2012
CHICAGO, Dec. 12, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Johnson Controls Inc. (NYSE:JCI),
Magna International Inc. (NYSE:MGA), Honeywell International Inc. (NYSE:HON),
Exide Technologies (Nasdaq:XIDE) and The Boeing Company (NYSE:BA).
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from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
Johnson Controls Laying Off Nearly 400
Johnson Controls Inc. (NYSE:JCI) plans to lay-off 392 workers at its Johnson
Controls Interior Manufacturing (JCIM) plant, located in National Turnpike in
Louisville, Kentucky. The plant is in operation from 1999 and manufactures
injection-molded plastic interior components for various automakers.
The layoff stems from the company's decision to close the plant in order to
get rid of excess capacity in its interiors business. The company would,
however, retain 50 employees working at the plant, according to a notice with
the Kentucky Division of Workforce and Employment Services.
Johnson Controls has been recently bested by China's auto parts conglomerate
Wanxiang Group Corp. in acquiring the assets of Waltham, Massachusetts based
lithium-ion battery maker A123 Systems Inc. The company believed that the
acquisition of A123 assets will strengthen its existing portfolio and help
maintain the market leading position.
However, Wanxiang won the auction by offering $256.6 million for the assets of
A123. The Chinese company bought A123's automotive segment, energy-grid
storage business, commercial business and U.S. government business. The sale
included two facilities located in Livonia and Romulus in Michigan.
Johnson Controls, a Zacks #4 Rank (Sell) company, reported adjusted earnings
per share of 77 cents for the fourth quarter of its fiscal year ended
September 30, 2012, ahead of the Zacks Consensus Estimate of 75 cents and up
1.3% from 76 cents a year ago. Earnings were in line with the management
expectation of 0% to 5% growth in the quarter.
Management believed earnings had favorable impacts from the improved
profitability in Building Efficiency, Power Solutions and North America
Automotive Experience businesses. However, these were offset by weak
performance in automotive and buildings markets in Europe.
The company's revenues for the quarter decreased 3.6% to $10.4 billion. It was
marginally lower than the Zacks Consensus Estimate of $10.8 billion. However,
excluding the impact of foreign exchange, revenues grew by 1% in the quarter.
The company has not provided any specific guidance for fiscal 2013. It expects
that earnings in the first half of fiscal 2013 will be lower than the year ago
period due to weak end markets and adverse effects of foreign currency.
However, it anticipates that earnings will be higher in the second half of
fiscal 2013 compared to the year-ago period, driven by positive impact from
restructuring activities. Meanwhile, earnings in fiscal 2013 are expected to
be flat or a bit higher than fiscal 2012.
Johnson Controls is a supplier of automotive interiors, batteries and other
control equipment. Its main competitors include Magna International Inc.
(NYSE:MGA) in the Automotive Experience segment, Honeywell International Inc.
(NYSE:HON) in the Building Efficiency segment and Exide Technologies
(Nasdaq:XIDE) in the Power Solutions segment.
Boeing: $4.7B Deal with Turkish Airlines
The Boeing Company (NYSE:BA) has received an order from Turkish Airlines for
15 777-300 Extended Range ("ER") airplanes. The order worth $4.7 billion at
list prices includes options for five additional 777-300ERs.
The Turkish Airlines had made the commitment in October 2012. Currently, the
Turkish Airlines' fleet includes 12 777-300ERs.
The Boeing 777 is the world's most successful twin-engine, long-haul airplane.
It produces 22% less carbon dioxide per seat and costs 20% less to operate per
seat. The Boeing 777-300 ER is the longer range version of the Boeing 777-300.
It is powered by the world's most powerful turbofan engines. The modified
extended range includes the most powerful engine, the GE90-115B, ever
produced. The aircraft is also equipped with raked wingtips, additional fuel
tanks, strengthened main landing gear and fuselage and a higher Maximum
Take-off Weight. The 386 seater airplane in a three-class configuration has a
maximum range of 7,930 nautical miles.
Recently in October, the company had increased the production rate for Boeing
777 from 7 per month to 8.3 per month. The company has implemented new
technologies in order to achieve the highest production rate. The increase
reflects the increased demand for the airplane.
Boeing is popular amongst various airlines for its excellent aircrafts.
Turkish Airlines currently operates a fleet that includes nearly 100 Boeing
airplanes. Moreover, in November, the company has received an order, worth
$4.9 billion, for 23 737-800s and 31 737 MAX 8s from SilkAir.
Boeing's revenue exposure is spread across more than 90 countries around the
globe. Due to the continuing recovery of the global economy, demand for
Boeing's Commercial Airplanes is benefiting from a steady improvement in
passenger and freight traffic. Overall, we expect the growth momentum to be
maintained by its order backlog, planned production rate increases and a
globally diversified customer base.
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