Full Description

Johnson Controls, Inc. (Johnson Controls) provides automotive interiors, products and services that optimize energy usage in buildings and batteries for automobiles and hybrid electric vehicles, along with related systems engineering, marketing and service expertise. The Company operates in three businesses: building efficiency, automotive experience and power solutions. The building efficiency business is engaged in designing, producing, marketing and installing integrated heating, ventilating and air conditioning (HVAC) systems, building management systems, controls, security and mechanical equipment. The automotive experience business provides interior systems to more than 30 million vehicles annually. The power solutions business is a producer of lead-acid automotive batteries, serving both automotive original equipment manufacturers (OEMs) and the general vehicle battery aftermarket.

In October 2008, the Company acquired Gridlogix. In July 2008, the Company acquired PWI Energy, an independent global provider of energy and greenhouse gas management services, based in Philadelphia. In July 2008, the Company formed a joint venture to acquire the interior product assets of Plastech Engineered Products, Inc. The Company owns 70% of the newly formed entity.

Building Efficiency

Building efficiency delivers integrated control systems, mechanical equipment, services and solutions to non-residential buildings and residential properties in more than 125 countries. Building efficiency sells its control systems, mechanical equipment and services through the Company’s global network of sales and service offices. Some types of controls and mechanical systems are sold to distributors of air-conditioning, refrigeration and commercial heating systems throughout the world.

During the fiscal year ended September 30, 2008 (fiscal 2008), approximately 47% of building efficiency’s sales were derived from HVAC products and installed control systems for construction and retrofit markets. In fiscal 2008, building efficiency accounted for 37% of the Company’s consolidated net sales.

The Company’s systems include York chillers, air handlers and other HVAC mechanical equipment that provide heating and cooling in non-residential buildings. The Metasys control system monitors and integrates HVAC equipment with other critical buildings systems. The Company offers a range of solutions, such as performance contracting, under which energy savings are used by the customer to pay a third-party financier for the project costs over a number of years. In addition, its global workplace solutions segment provides full-time onsite operations staff and real estate consulting services to help customers, especially multi-national companies. Through its unitary products business, the Company produces air conditioning and heating equipment for the residential market.

The Company competes with Honeywell International, Inc., Siemens AG (Siemens Building Technologies, an operating group), United Technologies Corporation (Carrier Corporation, a subsidiary), Ingersoll-Rand Company Limited (Trane Incorporated, a subsidiary), Rheem Manufacturing Company, Lennox International, Inc. and Goodman Global, Inc.

Automotive Experience

Automotive experience designs and manufactures products and systems for passenger cars and light trucks, including vans, pick-up trucks and sport/crossover utility vehicles. The business produces automotive interior systems for OEMs and operates approximately 185 wholly and majority-owned manufacturing or assembly plants in 29 countries worldwide. It also has partially owned affiliates in Asia, Europe, North America and South America.

Automotive experience systems and products include complete seating systems and components; cockpit systems, including instrument panels and clusters, information displays and body controllers; overhead systems, including headliners and electronic convenience features; floor consoles, and door systems. In fiscal 2008, automotive experience accounted for 48% of the Company’s consolidated net sales. The business operates assembly plants that supply automotive OEMs with complete seats on a just-in-time/in-sequence basis. Seats are assembled to specific order and delivered on a predetermined schedule directly to an automotive assembly line.

The Company competes with Lear Corporation, Faurecia SA and Magna International Inc.

Power Solutions

Power solutions services both automotive OEMs and the battery aftermarket by providing advanced battery technology, coupled with systems engineering, marketing and service expertise. The Company produces more than 120 million lead-acid batteries annually in approximately 60 wholly and majority-owned manufacturing or assembly plants in 20 countries worldwide. In fiscal 2008, approximately 75% of automotive battery sales worldwide were to the automotive replacement market, with the remaining sales to the OEM market. In fiscal 2008, sales of automotive batteries generated 15% of the Company’s consolidated net sales. Batteries and plastic battery containers are manufactured at wholly and partially owned plants in North America, South America, Asia and Europe.

The Company competes with Exide Technologies, GS Yuasa Corporation, East Penn Manufacturing Company and Fiamm Group.