In addition to reporting an increase in its fiscal third quarter earnings, Johnson Controls Inc. said Friday it will move for a tax-free spin-off of its Automotive Experience segment, creating an independent, publicly traded company.
According to a company news release, the move will benefit the company through “strong existing relationships with customers, well-established positions in growth markets including China, and will generate strong cash flow.” The Automotive Experience division had $22 billion in revenue in 2014.
For its third quarter, Johnson Controls reported income from its continuing operations of $848 million (91 cents/share) compared with $745 million (79 cents/share) for the same period last year, a14% increase.
