Create a free Manufacturing.net account to continue

Johnson Controls To Close 10 Plants

Company to cut an undisclosed number of jobs and close 10 manufacturing plants as part of a restructuring effort that will cost between $200 million and $215 million.

MILWAUKEE (AP) -- Johnson Controls Inc. said Friday it will cut jobs and close 10 manufacturing plants as part of a restructuring effort that it said will cost between $200 million and $215 million.

The company, whose products include automotive parts, batteries and building systems, did not say how many employees will be affected or which plants it will close. A company spokeswoman was not immediately available for comment early Friday.

The announcement marks the second recent restructuring effort at Johnson Controls, which has been hit hard by the downturn in global vehicle production. In September, the company announced a $495 million program of plant closures and job cuts, which it said is now two-thirds complete.

Johnson Controls said it expects the most recent restructuring effort to be complete by 2010. The company, which posted a $608 million fiscal first-quarter loss in January, said it expects to return to profitability by the second half of its fiscal year ending September.

It said it does not foresee any further restructuring efforts.

"While we don't expect near-term recoveries in our markets, we believe we can manage through this environment from a position of strength," Johnson Controls Chief Executive Stephen Roell said in a statement.

The company said 80 percent of the restructuring charges announced Friday will affect the company's automotive segment. It said will take the charges in its second fiscal quarter, which ends on Tuesday, and report earnings for the quarter April 21.

Shares of Johnson Controls closed Thursday at $12.90.