Johnson Controls, the automotive Motorola Two Way Radio Batteries manufacturer, has decided to raise the price of its lead acid batteries sold in the U.S. and Canada by 8%. The company has said that this hike is in response to the tightened environmental, health and safety regulations because of which it has to make increased investments in its infrastructure.
The company is upgrading its manufacturing facilities after the U.S. Environmental Protection Agency issued stringent air standards for lead emissions in 2008 and in January this year. It is investing $162 million in its North American recycling centers to make them compatible with recommended environmental standards.See our full analysis of Johnson Controls here
Last year, the company raised the cost of its Acer Aspire 5732z Battery by 5% – 9%, citing the rising raw material prices and delivery costs as the reason. This is unlikely to impact the company’s business as demand for its products has been strong due to a pickup in the business of automotive manufacturers and their ramp up of production world-wide.The margins for the company have remained steady for the past few years but the recent price hike might push them up slightly.
Automotive batteries is the most important division of Johnson Controls, accounting for nearly 33% of our $38 stock value. The Canon G-10hi Battery division enjoys a healthy margin of better than 19% (adjusted by Trefis for pension and other items) which is right there with the best in the industry.
related tags: Olympus Li-70b Battery, Camcorder Battery SONY NP-QM71, Acer Aspire 3610 Battery, Acer Aspire 5732z Battery, Canon Bp-511 Battery, Canon Eos 1100d Battery
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