, Columnist
Transformers, Johnson Controls Edition
Its business shift is coming together. It may take a while for its stock to catch up.
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Johnson Controls, once America's biggest car-parts supplier, took another step toward reinventing itself by striking a deal with Tyco International. Its valuation may take a while to catch up to the transformation.
The new Johnson Controls is going to be a much different company going forward with higher margins, less volatility -- and a lower tax bill, thanks to a plan to adopt Tyco's headquarters in Ireland, where rates are lower. A scheduled spinoff of Johnson Controls' automotive-interiors business later this year means the remaining company will primarily be focused on building-control technologies such as air conditioners and fire systems.