JCI to Shut 10 Units; Cut Workforce

Johnson Controls Inc. (JCI - Analyst Report) 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.

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