Johnson Controls CEO: Commercial Construction Business Is Coming Back

Johnson Controls Inc JCI has had a rough ride this year However, that’s mostly due to the slump the stock saw between July and mid-October; The stock has recovered more than 25 percent from its mid-October lows. With oil prices going down and forecast for auto sales increasing on the back of it, the Street expects JCI’s stock to continue to do well.

Alex Molinaroli, Johnson Controls president and CEO, was recently on CNBC to discuss the company’s prospects for 2015 and the growth potential in emerging markets.

“If you look at what’s happening this year, I think, the question is […] fuel prices, what’s that going to do to, not only the amount of sales units next year, but also the mix. Lots of SUVs and trucks,” Molinaroli said.

When asked about where he sees growth coming from apart from China, Molinaroli replied, “The growth that we'll see in Europe is probably automotive and I think it’s based of some of the things we are seeing today. Stability was an issue, if fuel prices stay low I think that’s going to really help the European economy. If nothing else, makes sure it remain stable.”

He continued, “The markets for construction, we are in the commercial construction business for the most part and that part of the business where typically in infrastructure-related construction, heavy construction, institutional markets, that has been pretty slow and so we have been a lag to the market, but we are starting to see indicators that’s coming back, governments are spending money, especially in the US.”