Johnson Controls, Inc. (NYSE:JCI)

CAPS Rating: 4 out of 5

The Company operates in three primary businesses: building efficiency, automotive experience and power solutions.

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Player Avatar JimAnt (25.43) Submitted: 4/24/2007 12:55:11 PM : Underperform Start Price: $29.43 JCI Score: -13.49

Lackluster management. Mid-range price. I don't see this beating S&P500 over the long-term, although short-term it might pick up speed.

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Member Avatar PreCFAJNM (21.17) Submitted: 6/9/2007 1:01:29 AM
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Can you give me an example of 'lackluster' management? Ok, sure, they aren't exciting people, but I think they do a consistently great job. I don't know why I feel I have to warn people I'm only 22.

Member Avatar Lewis3556 (< 20) Submitted: 9/22/2007 12:33:54 PM
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My concern about JCI is their involvement in the auto industry. Don't know if they do anything for Japanese etc. companies, but the North American car market seems to be "going to hell in a handbasket" Management has left it too long to try to easily fix the problems and with the unions dictating the terms of readjustment, they have a problem.
N Lewis
Canada

Member Avatar stockgolfer (34.87) Submitted: 10/30/2007 2:09:05 AM
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JCI doesn't have unions for one, they have been outscourcing large parts of their auto-supply business to mexico and have outsourced the management of their own US plants. Their long-term plan involves heavy use of South American labor for North America while establishing Asian (ie China) joint venture to produce thier parts for the Asian auto-makers. Two years ago they made the decision to no longer take business from GM, Ford and Chrysler that they could not make money on. Believe it or not, the big 3 often forced suppliers to accept business at below cost just to get the profitable business. JCI has ended that practice and largely produces items only they offer such as homelink and bluetooth integration. Of the US suppliers they are one of if not the strongest.

The fastest growing segment of JCI is their Controls unit, the purchas of York was a winner. Every 4 to 5 years JCI buys a large company and piecemeal breaks it apart and absorbs the rest. They simply know how to purchase business and return value to investors.

You have a winner with JCI.

Member Avatar WARPIGS1 (< 20) Submitted: 5/14/2008 12:45:04 PM
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Stockgolfer is pretty much dead on his assessment. I have worked for JCI for 15 yrs and continue to see great returns year after year.

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