|Traded as||NYSE: JCI
S&P 500 Component
|Industry||HVAC Equipment and Controls
|Alex Molinaroli, Chairman and CEO|
|Products||Batteries, Climate Control, Facility Management|
|Revenue||US$ 42.89 billion (2014)|
|US$ 1.336 billion (2014)|
Number of employees
|170,000 (As on Nov 30, 2012)|
Johnson Controls is an American multinational conglomerate producing automotive parts such as batteries and electronics and HVAC equipment for buildings. It employs 170,000 people in more than 1,300 locations across six continents. As of 2012[update] it was listed as 67th in the Fortune 500 and 251st in Global 500.
On January 25, 2016, Johnson announced its merger with Tyco International to form "Johnson Controls International plc". The merger led to the avoidance of U.S. taxes of its foreign market operations and a financial windfall for the CEO. On October 31, 2016, the former Johnson Controls Automotive Experience division was spun off as a separate, publicly-traded company, Adient plc, and began trading on the New York Stock Exchange.In February 2017 Johnson Controls International Plc. relocated to the US basing itself in Wisconsin as Johnson Controls International Inc..
In 1883, Warren S. Johnson, a professor at the State Normal School in Whitewater, Wisconsin, received a patent for the first electric room thermostat. His invention helped launch the building control industry and was the impetus for a new company. Johnson and a group of Milwaukee investors incorporated the Johnson Electric Service Company in 1885 to manufacture, install and service automatic temperature regulation systems for buildings. After Johnson's death in 1911, the company decided to focus on its temperature control business for nonresidential buildings. The company was renamed Johnson Controls in 1974.
On November 21, 2005, Johnson Controls Inc. said it must restate financial results for fiscal years 2003 and 2004 and the first three quarters of fiscal 2005. The changes would have no impact on net income, earnings per share or the financial position as previously reported. The Johnson Controls plant in Lakeshore, Ontario closed in late March 2010 and the property was sold. In 2013, Stephen Roell retired and Alex Molinaroli took his position as CEO and chairman of the board.
Merger with Tyco
In January 2016, Johnson Controls announced plans to merge with Tyco International to create a company based in Ireland. The merger will save the company about $150-million per year in taxes. The new company will be called Johnson Controls International Plc.
Hillary Clinton condemned the company for wanting to escape U.S. taxes through the merger after having "begged" the government for financial help in 2008. The Johnson deal, termed "outrageous" by Fortune magazine, qualifies as a "super inversion" because Tyco shareholders will own 44% of the company, thus avoiding penalties that the United States Department of the Treasury has imposed on other inversion deals.
The merger was completed on September 9, 2016.
Women's work rights
In 1982, Johnson Controls enacted what it called a "fetal protection policy", which denied women the right to work on the battery production line because of the potential harm to a fetus they might conceive. Women were allowed to work on the production line only if they could prove that "...their inability to bear children had been medically documented." In April 1984, the United Auto Workers sued Johnson Controls on behalf of three employees. These employees were Mary Craig, who had chosen to be sterilized to avoid losing her job, Elsie Nason, a 50-year-old divorcee, who had suffered a loss of compensation when she was transferred from a high paying job that exposed her to lead, and Donald Penney, who had been denied a request for a leave of absence for the purpose of lowering his blood lead levels because he intended to become a father. The case was argued before the Supreme Court on October 10, 1990 and was decided on March 20, 1991. The Court ruled in favor of the plaintiffs. This was a landmark ruling because it affirmed that "...it is no more important for the courts than it is for individual employers to decide whether a woman's reproductive role is more important to herself and her family than her economic role."
The company’s operations are segmented into four business units: Building Efficiency, Global WorkPlace Solutions, Power Solutions and Automotive Experience.
The Building Efficiency business unit designs, produces, installs and services heating, ventilation and air conditioning systems, industrial refrigeration, building management systems, fire and security systems and mechanical equipment for commercial and residential buildings. The brands produced under this business unit are York, TempMaster, Metasys, Panoptix, Frick and Sabroe. This unit also works with organizations to reduce the energy consumption and operating costs of their buildings. This includes retrofitting existing buildings such as the Empire State Building and working on maximizing efficiency in new construction such as the Burj Khalifa in Dubai. Building Efficiency is the company’s longest-running business unit, dating to 1885 when Johnson founded the Johnson Electric Service Company after patenting the electric thermostat in 1883. As of 2012, the business unit operated from 700 branch offices in more than 150 countries.
Johnson Controls was one of the defendants in a multimillion-dollar federal court lawsuit in San Juan, Puerto Rico in a case where 98 people perished and 140 were injured in a fire at the DuPont Plaza Hotel and its casino on New Year’s Eve, December 31, 1986. The plaintiffs claimed that Johnson Controls sold and installed an energy management system that failed to give early warning of the fire. After nine months of trial, the company and its energy management system were absolved of blame when the court issued a directed verdict. When this trial was completed the plaintiffs had accumulated approximately $220,908,549.00 in damages as a result of various settlements and a jury verdict against some other defendants.
Global WorkPlace Solutions
The Global WorkPlace Solutions business unit provides outsourced facilities management services globally. It also manages corporate real estate on behalf of its customers including acquiring and disposing of property, administering leases, and managing building related projects such as equipment replacements. On September 23, 2015, CBRE, Inc. purchased the Global Workplace Solutions business unit, retaining the name "Global Workplace Solutions".
The Power Solutions business unit designs and manufactures automotive batteries for passenger cars, heavy and light duty trucks, utility vehicles, motorcycles, golf carts and boats. It supplies more than one third of the world’s lead-acid batteries to automakers and aftermarket retailers including Wal-Mart, Sears and BMW. Lead acid battery brands produced under this business unit include OPTIMA, Heliar, LTH, and VARTA automotive batteries. This part of the company also manufactures Lithium-ion cells and complete battery systems to power hybrid and electric vehicles such as the Ford Fusion and Daimler’s S-Class 400. Additionally, it manufactures Absorbent Glass Matt (AGM) and Enhanced Flooded Batteries (EFB) batteries to power Start-Stop vehicles such as the Chevy Malibu and Ford Fusion. As of 2012, the business unit operated from 60 locations worldwide.
The Automotive Experience business unit supplies automotive seating, interiors and electronics to automakers. It is one of the largest suppliers of car interiors in the world. The seating division designs and manufactures automotive seats and supplies them on a just-in-time schedule. It also designs and manufactures seating components, including mechanisms, tracks, structures foams, fabrics and trim, making Johnson Controls the largest automotive seat supplier in the world. A separate interiors division produces overhead systems, headliners, door panels, instrument panels, and overhead and floor consoles for automotive interiors. Additionally, an electronics division designs and manufactures analog and digital instrument clusters, infotainment systems and hands free electronics. Brands produced under this business unit include RECARO automotive seats and Keiper. As of 2012, the business unit operated from 240 locations worldwide. On January 12, 2016 Johnson Controls announced that its remaining Automotive Experience holdings will spin-off and become Adient. This will be finalized on October 1, 2016, and begin to be publicly traded on the NYSE as ticker symbol ADNT on October 3, 2016.
Johnson Controls-Saft Advanced Power Solutions
Johnson Controls is exhibiting a plug-in hybrid concept called the re3. Johnson Controls produced cells for lithium-ion hybrid vehicle batteries in France under the joint venture with Saft. Battery assemblies were developed and produced in Hannover(Germany) and Milwaukee(USA)
Despite some signs of promise, Johnson Controls was increasingly dissatisfied with the restrictions of the agreement and also sought a more important ally. In May 2011, the American company requested the dissolution of Johnson Controls-Saft Advanced Power Solutions LLC to the Delaware Court of Chancery. The two companies agreed to the separation and Johnson Controls paid Saft 145 million dollars for its shares in the joint venture as well as for the right to use certain technology developed by it. Johnson Controls retained the Michigan facility built by the partnership. The French joint facility was transferred to Saft.
- Brookfield Johnson Controls is a joint venture with Brookfield Properties to provide commercial property management services in Canada. Established in 1992, it was known as Brookfield LePage Johnson Controls or BLJC until May 2015. In 2013, Johnson Controls and Brookfield Asset Management formed a similar joint venture Australia and New Zealand.
- Diniz Johnson Controls is a joint venture with Diniz Holding in Turkey building complete automotive seats for major OEMs.
- Amaron: Amara Raja Batteries of India signed a joint venture with Johnson Controls in December 1997 to manufacture automotive batteries in India, under the brand name "Amaron".
- On June 6, 2015, It exits from automotive seating business to concentrate on core business of building ventilation and automotive batteries.
- "Fortune 500 2012". Fortune. Retrieved 2016-03-09.
- "Global 500 Top Companies". Fortune.
- Surane, Jennifer (25 January 2016). "Johnson Controls Merges With Tyco in Tax-Lowering Maneuver". Bloomberg Business. Retrieved 2016-03-09.
- Stephen Gandell. "You Won't Believe How Much Johnson Controls' CEO Is Making on the Tyco Deal". Fortune 25 January 2016.
- "Adient starts trading in tough market for auto stocks". Reuters. 31 October 2016. Retrieved 9 January 2017.
- "3M to buy Johnson Controls' safety gear business for $2 billion". Reuters. 2017-03-16. Retrieved 2017-03-16.
- "Johnson Controls to restate results". Milwaukee Business Journal. 25 November 2005.
- "Auto-parts plant near Windsor, Ont., to close". CBC News. 22 January 2010. Retrieved 2016-03-09.
- Content, Thomas (24 July 2013). "Molinaroli named CEO of Johnson Controls". Milwaukee Journal Sentinel. Retrieved 2016-03-09.
- "Johnson Controls and Tyco to merge, to be based in low-tax Ireland". The Globe and Mail. Toronto. Reuters. 25 January 2016. Retrieved 2016-03-09.
- Gilbert, Craig (27 January 2016). "Hillary Clinton slams Johnson Controls-Tyco deal". Milwaukee Journal Sentinel.
- "You Won't Believe How Much Johnson Controls' CEO Is Making on the Tyco Deal". Fortune. 25 January 2016. Retrieved 2016-10-26.
- Automobile Workers v. Johnson Controls, U.S. 187, 111 S.Ct. 1196 (20 March 1991).
- "Johnson Controls Form 10-K 2012" (PDF). Johnson Controls Inc. Retrieved 26 August 2013.
- H.G. (28 May 2013). "Turn that light off!". The Economist. Retrieved 26 August 2013.
- Ivanova, Irina (24 June 2013). "Empire State Bldg's energy savings beat forecast". Crain's New York Business. Retrieved 26 August 2013.
- Hope, Gerhard (26 May 2010). "Johnson Controls secures Burj Khalifa contract". Arabian Industry. Retrieved 26 August 2013.
- Adler, Roger (18 June 2012). "In Control" (PDF). The National Law Journal. Retrieved 26 August 2013.
- Zwaniecki, Andrzej. "Thermostat Maker Deploys Climate Control Against Climate Change - Johnson Controls persuades building owners to go energy-efficient". IIP Digital. Department of State. Retrieved 26 August 2013.
- Lehr Jr., Louis A. (2013). Arnstein & Lehr, The First 120 Years. Arnstein & Lehr. pp. 110–113. ISBN 978-0-615-89503-1.
- Chicago Tribune, May 15, 1990[full citation needed]
- Merrills Illinois Legal Times, July 1, 1990, as corrected on November 5, 1990.[full citation needed]
- In re San Juan DuPont Plz. Hotel, 768 F. Supp. 912, 936 (Puerto Rico U.S. Dist. 1991)
- Content, Thomas (5 October 2010). "Johnson Controls to provide real estate services for Verizon". Milwaukee Journal Sentinel. Retrieved 26 August 2013.
- "Brookfield Asset Management and Johnson Controls have agreed to merge their Australian and New Zealand property and FM operations". FM World. 4 December 2012. Retrieved 26 August 2013.
- "CBRE Group, Inc. Closes Acquisition of Global Workplace Solutions Business from Johnson Controls, Inc." (Press release). Retrieved March 4, 2016.
- "Club Car Awards Johnson Controls as a Top Supplier". Small Vehicle Resource. 3 June 2013. Retrieved 26 August 2013.
- Content, Thomas (28 February 2013). "Johnson Controls' modified hybrid car batteries will power electric boat motor". Milwaukee Journal Sentinel. Retrieved 26 August 2013.
- "Johnson Controls modifies automotive PHEV Li-ion batteries for marine application; Torqeedo Deep Blue". Green Car Congress. 28 February 2013. Retrieved 26 August 2013.
- Houlahan, Mark (September 2013). "Optima's Digital 400 - Charge It Right". Mustang Monthly. Retrieved 26 August 2013.
- Rosevear, John (20 November 2012). "Under the Hood of Johnson Controls". The Motley Fool. Retrieved 26 August 2013.
- Team, Trefis (14 June 2013). "Johnson Controls Shores Up Its Market Share As Exide Files For Bankruptcy". Forbes. Retrieved 26 August 2013.
- Content, Thomas (18 July 2013). "European automotive business rebounds; HomeLink business to be sold to Gentex Corp. for $700 million". Milwaukee Journal Sentinel. Retrieved 26 August 2013.
- Gopwani, Jewel (10 April 2010). "Battery hub takes root in state". Detroit Free Press. Retrieved 26 August 2013.
- Schwartz, Ariel (4 February 2009). "Johnson Controls Awarded Battery Contract for Ford's First Hybrid Plug-In Vehicle". Greenbiz. Retrieved 26 August 2013.
- Fareed, Zakaria (20 February 2009). "To Pack a Real Punch - Everything hangs on the race to build tomorrow's battery". Newsweek. Retrieved 26 August 2013.
- Engel, Jeff (14 January 2013). "Johnson Controls supplies start-stop battery for 2013 Ford Fusion". Milwaukee Business Journal. Retrieved 26 August 2013.
- Content, Thomas (19 April 2013). "Johnson Controls to supply start-stop batteries for Chery Jaguar Land Rovers". Milwaukee Journal Sentinel. Retrieved 26 August 2013.
- Content, Thomas (14 January 2013). "Johnson Controls to supply batteries for Ford Fusion with better mileageJohnson Controls to supply batteries for Ford Fusion with better mileage". Milwaukee Journal Sentinel. Retrieved 26 August 2013.
- Moran, Tim (15 January 2013). "Johnson Controls Offers Start-Stop Battery System". The New York Times. Retrieved 26 August 2013.
- Motavalli, Jim (18 January 2010). "Detroit Auto Show: Johnson Controls is a Big Battery Player with a Low Profile". CBS News. Retrieved 26 August 2013.
- Chavez, Jon (7 August 2013). "Local Johnson Controls facility to make batteries for Chevy Eco". The Toledo Blade. Retrieved 26 August 2013.
- Cameron, Doug (31 December 2010). "Johnson Controls in Big Parts Deal". The Wall Street Journal. Retrieved 26 August 2013.
- Marsh, Peter (28 December 2011). "Car seat maker eyes new mattress spring". Financial Times. (Subscription required (. ))
- Clothier, Mark (11 August 2011). "Magna, Lear May Lead Global Consolidation of Automotive-Interior Suppliers". Bloomberg News. Retrieved 26 August 2013.
- Content, Thomas (12 January 2016). "Adient will be the name of the new company spun off from Johnson Controls". Milwaukee Journal Sentinel. Retrieved 12 March 2016.
- Healey, James R. (March 23, 2008). "Mercedes sees electric-car progress". USA Today.
- "FC info" (PDF) (in Japanese). Global Information Inc. Retrieved 12 March 2016.
- "Chrysler, Ford, and Other Automakers Pursue Electric Vehicles". Office of Energy Efficiency and Renewable Energy. 14 January 2009.
- Pentland, William (19 May 2011). "Battery Battle Brews for Johnson Controls, Saft". Forbes. Retrieved 15 August 2012.
- Fehrenbacher, Katie (19 May 2011). "Report: Johnson Controls Divorcing Saft Over Grid Battery Market". Gigaom. Retrieved 15 August 2012.
- King, Danny (7 September 2011). "Johnson Controls Buys Out Saft Joint Venture". AutoObserver. Retrieved 15 August 2012.
- Warburton, Simon (5 September 2011). "US: Johnson Controls and Saft finish battery joint venture". Just-auto.com. Retrieved 15 August 2012.
- Barrett, Rick (2 September 2011). "Johnson Controls, Saft agree to end joint venture". Milwaukee Journal Sentinel. Retrieved 15 August 2012.
- "Brookfield Johnson Controls to Become Brookfield Global Integrated Solutions" (Press release). Brookfield Global Integrated Solutions. 4 May 2015.
- ["Mission & History". Amara Raja. Retrieved 12 March 2016.
- Gara, Antoine (10 June 2015). "Johnson Controls Becomes Its Own Activist As It Contemplates Automotive Split". Forbes. Retrieved 12 March 2016.
|Wikimedia Commons has media related to Johnson Controls.|