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Johnson Controls Unveils Restructuring Plan

Workforce reductions, plant consolidations to be completed over the next 12 months.

MILWAUKEE (AP) – Johnson Controls Inc., a supplier of automotive interiors, has unveiled a restructuring plan that will lead to third-quarter charges of up $140 million.

The plan is designed to cut costs and improve efficiencies worldwide and involves work force reductions and plant consolidations.

Johnson Controls expects to complete the restructuring over the next 12 months.

The program will result in charges of between $130 million and $140 million, or 66 cents to 71 cents per share, in the fiscal third quarter ending June 30.

The charges will be offset by nonrecurring tax benefits of about $135 million, or 68 cents per share, resulting primarily from the reversal of a German deferred tax asset valuation allowance.

According to a Thomson Financial survey of 17 analysts, the company is expected to earn $1.68 per share for the quarter.

The company will report earnings on July 19.