Johnson Controls (JCI) Stock Climbs, Completes Adient Spinoff
Shares of Johnson Controls (JCI) were advancing on heavy trading volume early-afternoon Monday as the Cork, Ireland-based company said it completed the separation of Adient (ADNT), its automotive seating business. Earlier this year, Johnson Controls announced that it would spin Adient off into a new publicly traded company as a result of its merger with Princeton, NJ-based security systems provider Tyco Int'l. Additionally, Goldman Sachs today started coverage of Johnson Controls stock with a "buy" rating and a $46 price target.Adient starts trading in tough market for auto stocks
Adient, the automotive seating and interiors company spun off from Johnson Controls International Inc., started trading on the New York Stock Exchange on Monday and ran into the downdraft buffeting other automotive stocks, despite an optimistic outlook. Adient CEO Bruce McDonald and executive vice president Byron Foster told Reuters on Monday they expect continued growth in global vehicle sales, and expressed confidence the company can expand sales and profit margins for its automotive seat and and interiors businesses. Adient is the largest player in automotive seats, with a 34 percent global share of a business dominated by just five companies. Despite renewed cost-cutting pressure from automakers, "We think we have a couple hundred basis points of margin expansion we can deliver, based on things we have 100 percent control of," McDonald said.
Comments: Screen snap from here. We are long time JCI stockholders in IRAs