Why Johnson Controls Went Flat in 2012

2012 is nearing its end, and now's a good opportunity to look at what happened throughout the year to the stocks you follow. If you know the important things that a company achieved, as well as any challenges it failed to overcome, then you can make a better decision about whether it really deserves a spot in your portfolio.

Today, I'll look at Johnson Controls (NYSE: JCI  ) . The Tier 1 auto supply company provides parts and services to a variety of global automakers, with further applications including building HVAC systems and vehicle power solutions. But this year, its stock hasn't gone anywhere in a slow economy. Below, you'll find more on what moved shares of Johnson Controls this year.

Stats on Johnson Controls

Year-to-Date Stock Return


Market Cap

$20.6 billion

Revenue, past 12 months

$42 billion

Net Income, past 12 months

$1.23 billion

1-Year Revenue Growth


1-Year Net Income Growth


Dividend Yield


CAPS Rating


Source: S&P Capital IQ.

What held Johnson Controls back in 2012?
As primarily an auto-parts maker, Johnson Controls' fortunes are largely tied to those of major automakers. With Ford (NYSE: F  ) , General Motors (NYSE: GM  ) , and Daimler listed as its largest customers, Johnson Controls needs those companies to do well in order for it to maximize its success. One reason for Johnson's lackluster performance this year may come from the fact that Ford and GM have had tough problems in Europe, where Johnson gets a significant amount of its sales.

But Johnson Controls is seeking to outpace its competitors by picking up strategically important assets, especially in the battery area. The company grabbed up all of bankrupt A123 Systems' automotive assets for $125 million. That not only represents the death-blow to one of Johnson's big battery competitors but also will help it keep rival Exide Technologies (NASDAQOTH: XIDEQ  ) at bay.

Battery technology is so important because Johnson Controls is hoping to be a first-mover on the move toward pure-electric cars. Although Tesla Motors (NASDAQ: TSLA  ) uses battery technology from Panasonic, greater adoption of electric cars would lead to more demand for batteries throughout the industry, eventually bolstering Johnson's bottom line.

2012 hasn't been kind to Johnson Controls, but the company has taken steps toward reaping bigger rewards in the years to come. If the auto industry can make greater progress in 2013 toward a full recovery from its financial crisis in 2008 and 2009, then Johnson Controls should follow the automakers higher. 

Learn more
Johnson Controls had an interesting 2012, but to reap the true benefits in 2013, the company will have to focus on execution. Find out everything you should know about the battery maker in our premium report, in which we examine a number of factors to conclude whether Johnson Controls is a buy for smart investors like you. Thousands have already claimed their own premium company reports, and you can gain instant access to yours by clicking here now.

Click here to add Johnson Controls to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2168098, ~/Articles/ArticleHandler.aspx, 10/26/2016 3:38:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:02 PM
JCI $43.91 Down -0.48 -1.08%
Johnson Controls CAPS Rating: *****
F $11.85 Down -0.19 -1.58%
Ford CAPS Rating: ****
GM $31.60 Down -1.38 -4.18%
General Motors CAPS Rating: ***
TSLA $202.34 Down -0.42 -0.21%
Tesla Motors CAPS Rating: **
XIDEQ $0.00 Down +0.00 +0.00%