JCI to Shut 10 Units; Cut Workforce

Johnson Controls Inc. (JCI) will close 10 manufacturing facilities and further reduce its workforce as it copes with a worsening downturn in the auto industry.

The stock is down more than 2% amid low volume.

The maker of automotive interiors has neither specified which plants will be closed nor the number of employees that will be fired.

JCI is expected to incur a pre-tax expense of $200 million to $215 million for this restructuring initiative during the third and fourth quarters of fiscal 2009.

"While we don't expect near-term recoveries in our markets, we believe we can manage through this environment from a position of strength and enhance our ability to gain further market share while improving our margins," said chief executive Stephen Roell.

Analysts have pulled back on estimates for this Zacks #3 Rank ("Hold") stock. Earnings estimates for fiscal 2009 have been reduced by 21 cents over the past month and by 41 cents over the past 60 days.

Read the full analyst report on JCI