Johnson Controls Inc reported higher second-quarter earnings on Monday and lifted its revenue outlook for the year due to the stronger euro and higher expectations for its heating and ventilation unit.

The company, which also supplies parts to the auto industry, reported net income of $354 million, or 51 cents per share, up from $274 million, or 40 cents per share, a year earlier.

Johnson Controls said the loss of Japanese auto production after last month's earthquake would lower revenue by $500 million in the third quarter, or between 16 cents and 18 cents per share.

The company expects to recoup those losses in the first half of its fiscal 2012 year.

The company forecast $39.5 billion in revenue for 2011, up $1 billion from its previous forecast of $38.5 billion. The company expects to earn between 51 cents and 53 cents per share in the third fiscal quarter.

(Reporting by Deepa Seetharaman, editing by Maureen Bavdek)