Johnson Controls (JCI) to Initiate Restructuring Activities; Will Incur $450-$500M Charge in Q4

September 3, 2008 7:58 AM EDT

Johnson Controls, Inc. (NYSE: JCI) today announced it plans to initiate restructuring activities which will result in an estimated pre-tax charge of $450-$500 million in its Q408.

The restructuring charge relates to cost reduction initiatives in its automotive experience, building efficiency and power solutions businesses and includes workforce reductions and plant consolidations. The company expects to substantially complete the initiatives by early 2010.

The actions target reductions in the company's cost base by decreasing excess manufacturing capacity due to lower industry production and the continued movement of vehicle production to low-cost countries, especially in Europe. The restructuring actions in Building Efficiency are primarily in Europe where the company is centralizing certain functions and rebalancing its resources to target the geographic markets with the greatest potential growth. Power Solutions actions are focused on optimizing its regional manufacturing capacity.

Johnson Controls said it expects the restructuring plan will improve its long-term growth prospects in its highly competitive global markets.

Johnson Controls, Inc. operates as a global, diversified, and multi-industrial company.

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