- Fire & Security segment now reported as discontinued
operations making prior guidance not comparable
- Net sales of $6.0 billion up 21%
versus third quarter 2023; organic sales up 4%
- GAAP EPS from continuing operations of $0.62 and adjusted EPS from continuing operations
of $0.77
- Total GAAP EPS of $0.49 and
adjusted EPS of $0.83
- Final business exit on-track to close around year end
- Board increases remaining share repurchase authorization to
$4.7 billion
- Updated full year guidance to reflect the impact of
discontinued operations
PALM
BEACH GARDENS, Fla., Oct. 24,
2024 /PRNewswire/ -- Carrier Global Corporation
(NYSE: CARR), global leader in intelligent climate and energy
solutions, today reported strong financial results for the third
quarter of 2024 and adjusted its full year guidance to reflect the
move of the Fire & Security segment to discontinued operations.
The guidance now only reflects continuing operations.
"We delivered another quarter of strong financial performance
while making significant progress on our portfolio transformation,"
said Carrier Chair & CEO David
Gitlin. "Organic sales growth was up mid-single digits –
with aftermarket up 10% – and we grew orders roughly 20% as we
continue to gain share across key segments. Strong operating
performance driven by Carrier Excellence led to very strong core
earnings conversion. Carrier continues to create tremendous value
for our shareholders as we become a higher growth and more focused
global leader in intelligent climate and energy solutions. Our new
share repurchase authorization reflects our commitment to deliver
shareholder value through disciplined capital allocation. We
plan to have all our divestitures complete by the end of this year
and we are very pleased with the recently announced settlements
related to aqueous film-forming foam (AFFF). With all of our
transformational actions now substantially behind us we can even
further increase our focus on customers and delivering continued
superior financial performance."
Third Quarter 2024 Results
Carrier's third quarter sales of $6.0
billion were up 21% compared to the prior year including 4%
organic growth and approximately 17% contribution from
acquisitions, driven by Viessmann Climate Solutions. Foreign
currency translation had no impact on sales growth. Organic sales
in the HVAC segment were up 6%. HVAC sales in the Americas were up
high-single-digits driven by continued strength in Commercial HVAC,
which was up almost 20%, and double-digit growth in North America
Residential HVAC. HVAC organic sales in EMEA were up
low-single-digits, with Commercial HVAC up double-digits offsetting
a decline in Residential and Light Commercial HVAC sales. These
organic figures exclude the sales contribution of Viessmann Climate
Solutions which was up 8% sequentially and down around 25%
year-over-year. HVAC sales in Asia
Pacific were down low-single-digits driven by declines in
residential light commercial in China, partially offset by strength in
Commercial HVAC and other countries in Asia. Refrigeration
sales were up 1% organically driven by over 30% growth in
container, mostly offset by declines in North America truck and trailer.
GAAP operating profit in the quarter of $0.8 billion was up 50% from last year primarily
due to operational performance and the addition of Viessmann
Climate Solutions. Adjusted operating profit of over $1.0 billion from continuing operations was up
19%, mostly driven by organic growth, price and productivity, and
the addition of Viessmann Climate Solutions. Net income from
continuing operations was $564
million and adjusted net earnings from continuing operations
was $705 million. GAAP EPS from
continuing operations was $0.62 and
adjusted EPS from continuing operations was $0.77. GAAP EPS from discontinued operations was
($0.13) and adjusted EPS from
discontinued operations was $0.06.
Year to date, preliminary net cash flows generated from
operating activities were $431
million and capital expenditures were $312 million, resulting in preliminary free cash
flow of $119 million. This includes
cash tax payments of approximately $1
billion on the gains of the business exits and approximately
$300 million of transaction and
restructuring costs.
Share Repurchase Authorization
On October 21, 2024, Carrier
Global Corporation's Board of Directors approved a $3 billion share repurchase authorization. With
the remaining portion of the prior authorization, Carrier currently
has about $4.7 billion of repurchase
authorization. Share repurchases, if any, will take place at the
company's discretion in the open market or through one or more
other public or private transactions, subject to, among other
things, market conditions, share price, compliance with securities
laws and regulatory requirements and other factors. The stock
repurchase authorization has no time limit and may be modified,
suspended or discontinued at any time. This authorization is a key
component of the company's capital allocation plans, which also
includes acquisitions and dividends to help position the company
for strategic growth and to generate attractive shareowner
returns.
Full-Year 2024 Guidance**
Carrier's updated guidance for 2024 now only reflects continuing
operations with the exception of free cash flow.
|
Current
Guidance**
|
|
Sales
|
~$22.5B
Organic* up
~3%
FX
(0%)
Acquisitions
+18%
Divestitures
(2%)
|
|
|
|
Adjusted Operating
Margin*
|
~15.5%
|
|
|
|
Adjusted
EPS*
|
~$2.50
|
|
|
|
Free Cash
Flow*
|
~($0.2B)
Includes the expected
results of continuing
operations and discontinued operations.
Includes ~$2.6B of
expected tax payments on the
gains from the announced business exits,
restructuring, and transaction-related costs.
|
|
|
*Note: When the
company provides expectations for organic sales, adjusted operating
profit, adjusted operating margin, adjusted EPS and free cash flow
on a forward-looking basis, a reconciliation of the differences
between the non-GAAP expectations and the corresponding GAAP
measures generally is not available without unreasonable effort.
See "Use and Definitions of Non-GAAP Financial Measures" below for
additional information.
|
|
**As of October 24,
2024
|
Conference Call
Carrier will host a webcast of its earnings conference call
today, Thursday, October 24, 2024, at
7:30 a.m. ET. To access the webcast,
visit the Events & Presentations section of the Carrier
Investor Relations site at
ir.carrier.com/news-and-events/events-and-presentations or to
listen to the earnings call by phone, participants must
pre-register at Carrier Earnings Call Registration. All
registrants will receive dial-in information and a PIN allowing
access to the live call.
Discontinued Operations
In 2023, the Company announced
plans to exit its Fire & Security and Commercial Refrigeration
businesses over the course of 2024. The announced plan to exit the
Fire & Security segment represents a single disposal plan to
separately divest multiple businesses over different reporting
periods. Upon the Commercial and Residential Fire Business
qualifying as held for sale during the three months ended
September 30, 2024, the components of
the Fire & Security segment in aggregate met the criteria to be
presented as discontinued operations in the Company's unaudited
condensed consolidated statement of operations and unaudited
condensed consolidated statement of cash flows. In addition, the
assets and liabilities of the Commercial and Residential Fire
Business have been reclassified to held for sale at December 31, 2023. The results of the Commercial
Refrigeration business did not meet the criteria to be presented in
discontinued operations. Accordingly, all financial measures
presented herein, including non-GAAP financial measures, are
associated with Carrier's continuing operations unless specifically
noted. See "Use and Definitions of Non-GAAP Financial Measures"
below.
Cautionary Statement
This communication contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. These forward-looking statements are
intended to provide management's current expectations or plans for
Carrier's future operating and financial performance, based on
assumptions currently believed to be valid. Forward-looking
statements can be identified by the use of words such as "believe,"
"expect," "expectations," "plans," "strategy," "prospects,"
"preliminary," "estimate," "project," "target," "anticipate,"
"will," "should," "see," "guidance," "outlook," "confident,"
"scenario" and other words of similar meaning in connection with a
discussion of future operating or financial performance.
Forward-looking statements may include, among other things,
statements relating to future sales, earnings, cash flow, results
of operations, uses of cash, share repurchases, tax rates and other
measures of financial performance or potential future plans,
strategies or transactions of Carrier, our portfolio transformation
and the use of the anticipated proceeds thereof, potential future
investments, Carrier's plans with respect to its indebtedness and
other statements that are not historical facts.
This communication also contains estimated net cash flow and
free cash flow results for the quarter ended September 30, 2024. These estimated net cash flow
and free cash results are preliminary and subject to completion and
may change as a result of management's continued review. Such
preliminary results are subject to the finalization of quarter-end
financial and accounting procedures. The preliminary net cash flow
and free cash flow financial results represent management estimates
that constitute forward-looking statements.
All forward-looking statements involve risks, uncertainties and
other factors that may cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
For additional information on identifying factors that may cause
actual results to vary materially from those stated in
forward-looking statements, see Carrier's reports on Forms 10-K,
10-Q and 8-K filed with or furnished to the U.S. Securities and
Exchange Commission from time to time. Any forward-looking
statement speaks only as of the date on which it is made, and
Carrier assumes no obligation to update or revise such statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About Carrier
Carrier Global Corporation, global
leader in intelligent climate and energy solutions, is committed to
creating solutions that matter for people and our planet for
generations to come. From the beginning, we've led in inventing new
technologies and entirely new industries. Today, we continue to
lead because we have a world-class, diverse workforce that puts the
customer at the center of everything we do. For more information,
visit corporate.carrier.com or follow Carrier on social media at
@Carrier.
CARR-IR
|
Contact:
|
|
|
|
Investor
Relations
|
|
|
|
561-365-2251
|
|
|
|
Investor.Relations@Carrier.com
|
|
|
|
|
|
|
|
Media
Inquiries
|
|
|
|
Rob Six
|
|
|
|
561-281-2362
|
|
|
|
Rob.Six@Carrier.com
|
SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND
DEFINITIONS
Following are tables that present selected financial data of
Carrier Global Corporation ("Carrier"). Also included are
reconciliations of non-GAAP measures to their most comparable GAAP
measures.
Use and Definitions of Non-GAAP Financial
Measures
Carrier reports its financial results in accordance
with accounting principles generally accepted in the United States ("GAAP"). We supplement the
reporting of our financial information determined under GAAP with
certain non-GAAP financial information. The non-GAAP information
presented provides investors with additional useful information,
but should not be considered in isolation or as substitutes for the
related GAAP measures. Moreover, other companies may define
non-GAAP measures differently, which limits the usefulness of these
measures for comparisons with such other companies. We encourage
investors to review our financial statements and publicly filed
reports in their entirety and not to rely on any single financial
measure. A reconciliation of the non-GAAP measures to the
corresponding amounts prepared in accordance with GAAP appears in
the tables in this Appendix. The tables provide additional
information as to the items and amounts that have been excluded
from the adjusted measures.
Organic sales, adjusted operating profit, adjusted operating
margin, incremental margins / earnings conversion, earnings before
interest, taxes and depreciation and amortization ("EBITDA"),
adjusted EBITDA, adjusted net income, adjusted earnings per share
("EPS"), adjusted interest expense, net, adjusted effective tax
rate and net debt are non-GAAP financial measures and are
associated with Carrier's continuing operations unless specifically
noted.
Organic sales represents consolidated net sales (a GAAP
measure), excluding the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and other significant items of a nonoperational nature
(hereinafter referred to as "other significant items"). Adjusted
operating profit represents operating profit (a GAAP measure),
excluding restructuring costs, amortization of acquired intangibles
and other significant items. Adjusted operating margin represents
adjusted operating profit as a percentage of net sales (a GAAP
measure). Incremental margins / earnings conversion represents the
year-over-year change in adjusted operating profit divided by the
year-over-year change in net sales. EBITDA represents net income
attributable to common shareholders (a GAAP measure), adjusted for
interest income and expense, income tax expense, and depreciation
and amortization. Adjusted EBITDA represents EBITDA, as calculated
above, excluding non-service pension benefit, non-controlling
interest in subsidiaries' earnings from operations, restructuring
costs and other significant items. Adjusted net income represents
net income attributable to common shareowners (a GAAP measure),
excluding restructuring costs, amortization of acquired intangibles
and other significant items. Adjusted EPS represents diluted
earnings per share (a GAAP measure), excluding restructuring costs,
amortization of acquired intangibles and other significant items.
Adjusted interest expense, net represents interest expense (a GAAP
measure) and interest income (a GAAP measure), net excluding other
significant items. The adjusted effective tax rate represents the
effective tax rate (a GAAP measure), excluding restructuring costs,
amortization of acquired intangibles and other significant items.
Net debt represents long-term debt (a GAAP measure) less cash and
cash equivalents (a GAAP measure). For the business segments, when
applicable, adjustments of operating profit and operating margins
represent operating profit, excluding restructuring, amortization
of acquired intangibles and other significant items.
Free cash flow is a non-GAAP financial measure that represents
net cash flows provided by continuing operating activities (a GAAP
measure) less capital expenditures. Management believes free cash
flow is a useful measure of liquidity and an additional basis for
assessing Carrier's ability to fund its activities, including the
financing of acquisitions, debt service, repurchases of Carrier's
common stock and distribution of earnings to shareowners.
Orders are contractual commitments with customers to provide
specified goods or services for an agreed upon price and may not be
subject to penalty if cancelled.
When Carrier provides our expectations for organic sales,
adjusted operating profit, adjusted operating margin, adjusted
interest expense, net, adjusted effective tax rate, incremental
margins/earnings conversion, EBITDA, adjusted EBITDA, adjusted EPS
and free cash flow on a forward-looking basis, a reconciliation of
the differences between the non-GAAP expectations and the
corresponding GAAP measures (expected net sales, operating profit,
operating margin, interest expense, effective tax rate, incremental
operating margin, net income attributable to common shareowners,
diluted EPS and net cash flows provided by operating activities)
generally is not available without unreasonable effort due to
potentially high variability, complexity and low visibility as to
the items that would be excluded from the GAAP measure in the
relevant future period, such as unusual gains and losses, the
ultimate outcome of pending litigation, fluctuations in foreign
currency exchange rates, the impact and timing of potential
acquisitions and divestitures, future restructuring costs, and
other structural changes or their probable significance. The
variability of the excluded items may have a significant, and
potentially unpredictable, impact on our future GAAP results.
|
Carrier Global
Corporation
|
|
Condensed
Consolidated Statement of Operations
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(In millions,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
5,307
|
|
$
4,344
|
|
$
15,460
|
|
$
12,939
|
|
Service
sales
|
|
677
|
|
591
|
|
1,878
|
|
1,696
|
|
Total Net
sales
|
|
5,984
|
|
4,935
|
|
17,338
|
|
14,635
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
(3,796)
|
|
(2,986)
|
|
(11,245)
|
|
(9,269)
|
|
Cost of services
sold
|
|
(511)
|
|
(463)
|
|
(1,456)
|
|
(1,321)
|
|
Research and
development
|
|
(172)
|
|
(126)
|
|
(524)
|
|
(355)
|
|
Selling, general and
administrative
|
|
(799)
|
|
(664)
|
|
(2,394)
|
|
(1,870)
|
|
Total Costs and
expenses
|
|
(5,278)
|
|
(4,239)
|
|
(15,619)
|
|
(12,815)
|
|
Equity method
investment net earnings
|
|
66
|
|
75
|
|
187
|
|
171
|
|
Other income
(expense), net
|
|
(9)
|
|
(261)
|
|
(34)
|
|
(370)
|
|
Operating
profit
|
|
763
|
|
510
|
|
1,872
|
|
1,621
|
|
Non-service pension
(expense) benefit
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
Interest (expense)
income, net
|
|
8
|
|
(39)
|
|
(290)
|
|
(126)
|
|
Earnings before
income taxes
|
|
770
|
|
471
|
|
1,581
|
|
1,495
|
|
Income tax (expense)
benefit
|
|
(172)
|
|
(177)
|
|
(339)
|
|
(453)
|
|
Earnings from
continuing operations
|
|
598
|
|
294
|
|
1,242
|
|
1,042
|
|
Discontinued
operations, net of tax
|
|
(117)
|
|
87
|
|
1,897
|
|
(41)
|
|
Net earnings
(loss)
|
|
481
|
|
381
|
|
3,139
|
|
1,001
|
|
Less: Non-controlling
interest in subsidiaries'
|
|
34
|
|
24
|
|
86
|
|
72
|
|
Net earnings (loss)
attributable to common shareowners
|
|
$
447
|
|
$
357
|
|
$
3,053
|
|
$
929
|
|
Amounts attributable
to common shareowners:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
564
|
|
$
270
|
|
$
1,156
|
|
$
970
|
|
Discontinued
operations
|
|
(117)
|
|
87
|
|
1,897
|
|
(41)
|
|
Net earnings (loss)
attributable to common shareowners
|
|
$
447
|
|
$
357
|
|
$
3,053
|
|
$
929
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.63
|
|
$
0.32
|
|
$
1.28
|
|
$
1.16
|
|
Discontinued
operations
|
|
(0.13)
|
|
0.11
|
|
2.11
|
|
(0.05)
|
|
Net earnings
(loss)
|
|
$
0.50
|
|
$
0.43
|
|
$
3.39
|
|
$
1.11
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.62
|
|
$
0.32
|
|
$
1.26
|
|
$
1.14
|
|
Discontinued
operations
|
|
(0.13)
|
|
0.10
|
|
2.08
|
|
(0.05)
|
|
Net earnings
(loss)
|
|
$
0.49
|
|
$
0.42
|
|
$
3.34
|
|
$
1.09
|
|
Weighted-average
number of shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
901.2
|
|
838.7
|
|
900.9
|
|
836.6
|
|
Diluted
|
|
915.0
|
|
854.7
|
|
914.4
|
|
852.7
|
|
Carrier Global
Corporation
|
|
Condensed
Consolidated Balance Sheet
|
|
|
|
(Unaudited)
|
|
(In
millions)
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,225
|
|
$
9,852
|
|
Accounts receivable,
net
|
|
2,726
|
|
2,080
|
|
Inventories,
net
|
|
2,646
|
|
1,823
|
|
Assets held for
sale
|
|
2,680
|
|
5,093
|
|
Other current
assets
|
|
917
|
|
728
|
|
Total current
assets
|
|
11,194
|
|
19,576
|
|
Future income tax
benefits
|
|
1,142
|
|
718
|
|
Fixed assets,
net
|
|
3,015
|
|
2,160
|
|
Operating lease
right-of-use assets
|
|
568
|
|
421
|
|
Intangible assets,
net
|
|
7,118
|
|
945
|
|
Goodwill
|
|
15,294
|
|
7,520
|
|
Pension and
post-retirement assets
|
|
54
|
|
32
|
|
Equity method
investments
|
|
1,287
|
|
1,140
|
|
Other assets
|
|
529
|
|
310
|
|
Total
Assets
|
|
$
40,201
|
|
$
32,822
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Accounts
payable
|
|
$
2,829
|
|
$
2,483
|
|
Accrued
liabilities
|
|
4,233
|
|
2,997
|
|
Liabilities held for
sale
|
|
1,221
|
|
1,450
|
|
Current portion of
long-term debt
|
|
2,095
|
|
51
|
|
Total current
liabilities
|
|
10,378
|
|
6,981
|
|
Long-term
debt
|
|
10,337
|
|
14,242
|
|
Future pension and
post-retirement obligations
|
|
209
|
|
149
|
|
Future income tax
obligations
|
|
2,241
|
|
523
|
|
Operating lease
liabilities
|
|
445
|
|
333
|
|
Other long-term
liabilities
|
|
1,549
|
|
1,589
|
|
Total
Liabilities
|
|
25,159
|
|
23,817
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common
stock
|
|
9
|
|
9
|
|
Treasury
stock
|
|
(2,403)
|
|
(1,972)
|
|
Additional paid-in
capital
|
|
8,588
|
|
5,535
|
|
Retained
earnings
|
|
9,301
|
|
6,591
|
|
Accumulated other
comprehensive loss
|
|
(802)
|
|
(1,486)
|
|
Non-controlling
interest
|
|
349
|
|
328
|
|
Total
Equity
|
|
15,042
|
|
9,005
|
|
Total Liabilities
and Equity
|
|
$
40,201
|
|
$
32,822
|
|
Carrier Global
Corporation
|
|
Condensed
Consolidated Statement of Cash Flows
|
|
(Unaudited)
|
|
|
|
Nine Months
Ended
September 30,
|
|
(In
millions)
|
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
|
Net earnings
(loss)
|
|
$
3,139
|
|
$
1,001
|
|
Discontinued
operations, net of tax
|
|
(1,897)
|
|
41
|
|
Adjustments for
non-cash items, net:
|
|
|
|
|
|
Depreciation and
amortization
|
|
914
|
|
368
|
|
Deferred income tax
provision
|
|
(296)
|
|
(150)
|
|
Stock-based
compensation costs
|
|
65
|
|
55
|
|
Equity method
investment net earnings
|
|
(187)
|
|
(171)
|
|
(Gain) loss on
extinguishment of debt
|
|
(88)
|
|
—
|
|
(Gain) loss on sale of
investments / deconsolidation
|
|
(2)
|
|
(19)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
Accounts receivable,
net
|
|
(135)
|
|
(279)
|
|
Inventories,
net
|
|
76
|
|
(72)
|
|
Accounts payable and
accrued liabilities
|
|
(247)
|
|
622
|
|
Distributions from
equity method investments
|
|
36
|
|
45
|
|
Other operating
activities, net
|
|
(260)
|
|
(96)
|
|
Preliminary net cash
flows provided by (used in) continuing operating
activities
|
|
1,118
|
|
1,345
|
|
Preliminary net cash
flows provided by (used in) discontinued operating
activities
|
|
(687)
|
|
200
|
|
Preliminary net cash
flows provided by (used in) operating activities
|
|
431
|
|
1,545
|
|
Investing
Activities
|
|
|
|
|
|
Capital
expenditures
|
|
(302)
|
|
(217)
|
|
Investment in
businesses, net of cash acquired
|
|
(10,873)
|
|
(69)
|
|
Dispositions of
businesses
|
|
—
|
|
54
|
|
Settlement of
derivative contracts, net
|
|
(187)
|
|
(66)
|
|
Other investing
activities, net
|
|
31
|
|
14
|
|
Net cash flows
provided by (used in) continuing investing activities
|
|
(11,331)
|
|
(284)
|
|
Net cash flows
provided by (used in) discontinued investing activities
|
|
6,217
|
|
(147)
|
|
Net cash flows
provided by (used in) investing activities
|
|
(5,114)
|
|
(431)
|
|
Financing
Activities
|
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
37
|
|
(27)
|
|
Issuance of long-term
debt
|
|
2,586
|
|
14
|
|
Repayment of long-term
debt
|
|
(4,530)
|
|
(15)
|
|
Repurchases of common
stock
|
|
(431)
|
|
(62)
|
|
Dividends paid on
common stock
|
|
(514)
|
|
(465)
|
|
Dividends paid to
non-controlling interest
|
|
(72)
|
|
(46)
|
|
Other financing
activities, net
|
|
(15)
|
|
(72)
|
|
Net cash flows
provided by (used in) continuing financing activities
|
|
(2,939)
|
|
(673)
|
|
Net cash flows
provided by (used in) discontinued financing activities
|
|
(11)
|
|
(15)
|
|
Net cash flows
provided by (used in) financing activities
|
|
(2,950)
|
|
(688)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(18)
|
|
(45)
|
|
Net increase
(decrease) in cash and cash equivalents and restricted cash,
including cash classified
in current assets held for sale
|
|
(7,651)
|
|
381
|
|
Less: Change in cash
balances classified as assets held for sale
|
|
(36)
|
|
(5)
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
|
(7,615)
|
|
386
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
9,854
|
|
3,303
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
2,239
|
|
3,689
|
|
Less: restricted
cash
|
|
14
|
|
4
|
|
Cash and cash
equivalents, end of period
|
|
$
2,225
|
|
$
3,685
|
|
Carrier Global
Corporation
|
|
Segment Net Sales
and Operating Profit
|
|
|
(Unaudited)
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(In
millions)
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$
5,058
|
|
$
5,058
|
|
$
4,008
|
|
$
4,008
|
|
$
14,569
|
|
$
14,569
|
|
$
11,846
|
|
$
11,846
|
|
Refrigeration
|
938
|
|
938
|
|
924
|
|
924
|
|
2,795
|
|
2,795
|
|
2,794
|
|
2,794
|
|
Segment
sales
|
5,996
|
|
5,996
|
|
4,932
|
|
4,932
|
|
17,364
|
|
17,364
|
|
14,640
|
|
14,640
|
|
Eliminations and
other
|
(12)
|
|
(12)
|
|
3
|
|
3
|
|
(26)
|
|
(26)
|
|
(5)
|
|
(5)
|
|
Net
sales
|
$
5,984
|
|
$
5,984
|
|
$
4,935
|
|
$
4,935
|
|
$
17,338
|
|
$
17,338
|
|
$
14,635
|
|
$
14,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$ 741
|
|
$
1,001
|
|
$ 763
|
|
$ 833
|
|
$
1,857
|
|
$
2,712
|
|
$
1,940
|
|
$
2,114
|
|
Refrigeration
|
109
|
|
117
|
|
107
|
|
111
|
|
319
|
|
334
|
|
327
|
|
341
|
|
Segment operating
profit
|
850
|
|
1,118
|
|
870
|
|
944
|
|
2,176
|
|
3,046
|
|
2,267
|
|
2,455
|
|
Eliminations and
other
|
(25)
|
|
(23)
|
|
(252)
|
|
6
|
|
(84)
|
|
(38)
|
|
(399)
|
|
(28)
|
|
General corporate
expenses
|
(62)
|
|
(51)
|
|
(108)
|
|
(73)
|
|
(220)
|
|
(144)
|
|
(247)
|
|
(189)
|
|
Operating
profit
|
$
763
|
|
$
1,044
|
|
$
510
|
|
$
877
|
|
$
1,872
|
|
$
2,864
|
|
$
1,621
|
|
$
2,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
14.7 %
|
|
19.8 %
|
|
19.0 %
|
|
20.8 %
|
|
12.7 %
|
|
18.6 %
|
|
16.4 %
|
|
17.8 %
|
|
Refrigeration
|
11.6 %
|
|
12.5 %
|
|
11.6 %
|
|
12.0 %
|
|
11.4 %
|
|
11.9 %
|
|
11.7 %
|
|
12.2 %
|
|
Total
Carrier
|
12.8 %
|
|
17.4 %
|
|
10.3 %
|
|
17.8 %
|
|
10.8 %
|
|
16.5 %
|
|
11.1 %
|
|
15.3 %
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP)
|
|
Operating
Profit
|
|
|
(Unaudited)
|
|
Three Months Ended
September 30, 2024
|
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Eliminations
and Other
|
|
General
Corporate
Expenses
|
|
Carrier
|
|
Net
sales
|
$
5,058
|
|
$
938
|
|
$
(12)
|
|
$
—
|
|
$
5,984
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
741
|
|
$
109
|
|
$
(25)
|
|
$
(62)
|
|
$
763
|
|
Reported operating
margin
|
14.7 %
|
|
11.6 %
|
|
|
|
|
|
12.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
54
|
|
$
4
|
|
$
2
|
|
$
—
|
|
$
60
|
|
Amortization of
acquired intangibles
|
175
|
|
—
|
|
—
|
|
—
|
|
175
|
|
Acquisition step-up
amortization (1)
|
31
|
|
—
|
|
—
|
|
—
|
|
31
|
|
Acquisition/divestiture-related costs
|
—
|
|
4
|
|
—
|
|
11
|
|
15
|
|
Total adjustments to
operating profit
|
$
260
|
|
$
8
|
|
$
2
|
|
$
11
|
|
$
281
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
1,001
|
|
$
117
|
|
$
(23)
|
|
$
(51)
|
|
$
1,044
|
|
Adjusted operating
margin
|
19.8 %
|
|
12.5 %
|
|
|
|
|
|
17.4 %
|
|
|
(Unaudited)
|
|
Three Months Ended
September 30, 2023
|
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Eliminations
and Other
|
|
General
Corporate
Expenses
|
|
Carrier
|
|
Net
sales
|
$
4,008
|
|
$
924
|
|
$
3
|
|
$
—
|
|
$
4,935
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
763
|
|
$
107
|
|
$
(252)
|
|
$
(108)
|
|
$
510
|
|
Reported operating
margin
|
19.0 %
|
|
11.6 %
|
|
|
|
|
|
10.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
25
|
|
$
4
|
|
$
—
|
|
$
—
|
|
$
29
|
|
Amortization of
acquired intangibles
|
35
|
|
—
|
|
—
|
|
—
|
|
35
|
|
Acquisition step-up
amortization (1)
|
10
|
|
—
|
|
—
|
|
—
|
|
10
|
|
Acquisition/divestiture-related costs
|
—
|
|
—
|
|
—
|
|
35
|
|
35
|
|
Bridge loan financing
costs
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
Viessmann-related
hedges
|
—
|
|
—
|
|
257
|
|
—
|
|
257
|
|
Total adjustments to
operating profit
|
$
70
|
|
$
4
|
|
$
258
|
|
$
35
|
|
$
367
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
833
|
|
$
111
|
|
$
6
|
|
$
(73)
|
|
$
877
|
|
Adjusted operating
margin
|
20.8 %
|
|
12.0 %
|
|
|
|
|
|
17.8 %
|
|
|
(1) Amortization of the step-up to
fair value of acquired inventory and backlog.
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP)
|
|
Operating
Profit
|
|
|
(Unaudited)
|
|
Nine Months Ended
September 30, 2024
|
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Eliminations
and Other
|
|
General
Corporate
Expenses
|
|
Carrier
|
|
Net
sales
|
$
14,569
|
|
$
2,795
|
|
$
(26)
|
|
$
—
|
|
$
17,338
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
1,857
|
|
$
319
|
|
$
(84)
|
|
$
(220)
|
|
$
1,872
|
|
Reported operating
margin
|
12.7 %
|
|
11.4 %
|
|
|
|
|
|
10.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
86
|
|
$
5
|
|
$
6
|
|
$
—
|
|
$
97
|
|
Amortization of
acquired intangibles
|
517
|
|
—
|
|
—
|
|
—
|
|
517
|
|
Acquisition step-up
amortization (1)
|
251
|
|
—
|
|
—
|
|
—
|
|
251
|
|
Acquisition/divestiture-related costs
|
1
|
|
10
|
|
—
|
|
76
|
|
87
|
|
Viessmann-related
hedges
|
—
|
|
—
|
|
86
|
|
—
|
|
86
|
|
Gain on liability
adjustment (2)
|
—
|
|
—
|
|
(46)
|
|
—
|
|
(46)
|
|
Total adjustments to
operating profit
|
$
855
|
|
$
15
|
|
$
46
|
|
$
76
|
|
$
992
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
2,712
|
|
$
334
|
|
$
(38)
|
|
$
(144)
|
|
$
2,864
|
|
Adjusted operating
margin
|
18.6 %
|
|
11.9 %
|
|
|
|
|
|
16.5 %
|
|
(Unaudited)
|
|
Nine Months Ended
September 30, 2023
|
|
(In
millions)
|
HVAC
|
|
Refrigeration
|
|
Eliminations
and Other
|
|
General
Corporate
Expenses
|
|
Carrier
|
|
Net
sales
|
$
11,846
|
|
$
2,794
|
|
$
(5)
|
|
$
—
|
|
$ 14,635
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
$
1,940
|
|
$
327
|
|
$
(399)
|
|
$
(247)
|
|
$
1,621
|
|
Reported operating
margin
|
16.4 %
|
|
11.7 %
|
|
|
|
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to segment
operating profit:
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$
27
|
|
$
14
|
|
$
2
|
|
$
—
|
|
$
43
|
|
Amortization of
acquired intangibles
|
108
|
|
—
|
|
—
|
|
—
|
|
108
|
|
Acquisition step-up
amortization (1)
|
31
|
|
—
|
|
—
|
|
—
|
|
31
|
|
Acquisition/divestiture-related costs
|
—
|
|
—
|
|
—
|
|
58
|
|
58
|
|
Bridge loan financing
costs
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
Viessmann-related
hedges
|
—
|
|
—
|
|
368
|
|
—
|
|
368
|
|
TCC
acquisition-related gain (3)
|
8
|
|
—
|
|
—
|
|
—
|
|
8
|
|
Total adjustments to
operating profit
|
$
174
|
|
$
14
|
|
$
371
|
|
$
58
|
|
$
617
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit
|
$
2,114
|
|
$
341
|
|
$
(28)
|
|
$
(189)
|
|
$
2,238
|
|
Adjusted operating
margin
|
17.8 %
|
|
12.2 %
|
|
|
|
|
|
15.3 %
|
|
|
(1) Amortization of the step-up to
fair value of acquired inventory and backlog.
|
|
(2) Gain associated with an
adjustment to our tax-related liability owed to UTC.
|
|
(3)
The carrying value of our previously held TCC equity
investments were recognized at fair value and subsequently
adjusted.
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
Net Income, Earnings
Per Share and Effective Tax Rate
|
|
|
(Unaudited)
|
|
Three Months Ended
September 30, 2024
|
|
Nine Months Ended
September 30, 2024
|
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Net sales
|
$
5,984
|
|
$
—
|
|
$
5,984
|
|
$
17,338
|
|
$
—
|
|
$
17,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$ 763
|
|
281
|
a
|
$
1,044
|
|
$
1,872
|
|
992
|
a
|
$
2,864
|
|
Operating
margin
|
12.8 %
|
|
|
|
17.4 %
|
|
10.8 %
|
|
|
|
16.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes
|
$ 770
|
|
195
|
a,b
|
$ 965
|
|
$
1,581
|
|
918
|
a,b
|
$
2,499
|
|
Income tax (expense)
benefit
|
$ (172)
|
|
(54)
|
c
|
$ (226)
|
|
$ (339)
|
|
(227)
|
c
|
$ (566)
|
|
Effective tax
rate
|
22.3 %
|
|
|
|
23.4 %
|
|
21.4 %
|
|
|
|
22.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
attributable to common shareowners
|
$
564
|
|
$
141
|
|
$
705
|
|
$
1,156
|
|
$
691
|
|
$
1,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
60
|
a
|
|
|
|
|
$
97
|
a
|
|
|
Amortization of
acquired intangibles
|
|
|
175
|
a
|
|
|
|
|
517
|
a
|
|
|
Acquisition step-up
amortization (1)
|
|
|
31
|
a
|
|
|
|
|
251
|
a
|
|
|
Acquisition/divestiture-related costs
|
|
|
15
|
a
|
|
|
|
|
87
|
a
|
|
|
Viessmann-related
hedges
|
|
|
—
|
a
|
|
|
|
|
86
|
a
|
|
|
Gain on liability
adjustment (2)
|
|
|
—
|
a
|
|
|
|
|
(46)
|
a
|
|
|
Debt extinguishment
(gain)
|
|
|
(97)
|
b
|
|
|
|
|
(97)
|
b
|
|
|
Debt prepayment
costs
|
|
|
11
|
b
|
|
|
|
|
23
|
b
|
|
|
Total
adjustments
|
|
|
$
195
|
|
|
|
|
|
$
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
(54)
|
|
|
|
|
|
$
(227)
|
|
|
|
Tax specific
adjustments
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Total tax
adjustments
|
|
|
$
(54)
|
c
|
|
|
|
|
$
(227)
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
915.0
|
|
|
|
915.0
|
|
914.4
|
|
|
|
914.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.62
|
|
|
|
$
0.77
|
|
$
1.26
|
|
|
|
$
2.02
|
|
|
(1) Amortization of the step-up to
fair value of acquired inventory and backlog.
|
|
(2) Gain associated with an
adjustment to our tax-related liability owed to UTC.
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
Net Income, Earnings
Per Share and Effective Tax Rate
|
|
|
(Unaudited)
|
|
Three Months Ended
September 30, 2023
|
|
Nine Months Ended
September 30, 2023
|
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Net sales
|
$
4,935
|
|
$
—
|
|
$
4,935
|
|
$
14,635
|
|
$
—
|
|
$
14,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$ 510
|
|
367
|
a
|
$ 877
|
|
$
1,621
|
|
617
|
a
|
$
2,238
|
|
Operating
margin
|
10.3 %
|
|
|
|
17.8 %
|
|
11.1 %
|
|
|
|
15.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes
|
$ 471
|
|
378
|
a,b
|
$ 849
|
|
$
1,495
|
|
649
|
a,b
|
$
2,144
|
|
Income tax (expense)
benefit
|
$ (177)
|
|
(10)
|
c
|
$ (187)
|
|
$ (453)
|
|
(44)
|
c
|
$ (497)
|
|
Effective tax
rate
|
37.6 %
|
|
|
|
22.0 %
|
|
30.3 %
|
|
|
|
23.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
attributable to common shareowners
|
$
270
|
|
$
368
|
|
$
638
|
|
$
970
|
|
$
605
|
|
$
1,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
29
|
a
|
|
|
|
|
$
43
|
a
|
|
|
Amortization of
acquired intangibles
|
|
|
35
|
a
|
|
|
|
|
108
|
a
|
|
|
Acquisition step-up
amortization (1)
|
|
|
10
|
a
|
|
|
|
|
31
|
a
|
|
|
Acquisition/divestiture-related costs
|
|
|
35
|
a
|
|
|
|
|
58
|
a
|
|
|
Viessmann-related
hedges
|
|
|
257
|
a
|
|
|
|
|
368
|
a
|
|
|
TCC acquisition-related
gain (2)
|
|
|
—
|
a
|
|
|
|
|
8
|
a
|
|
|
Bridge loan financing
costs (3)
|
|
|
12
|
a,b
|
|
|
|
|
33
|
a,b
|
|
|
Total
adjustments
|
|
|
$
378
|
|
|
|
|
|
$
649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
(29)
|
|
|
|
|
|
$
(63)
|
|
|
|
Tax specific
adjustments
|
|
|
19
|
|
|
|
|
|
19
|
|
|
|
Total tax
adjustments
|
|
|
$
(10)
|
c
|
|
|
|
|
$
(44)
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
854.7
|
|
|
|
854.7
|
|
852.7
|
|
|
|
852.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.32
|
|
|
|
$
0.75
|
|
$
1.14
|
|
|
|
$
1.85
|
|
|
(1) Amortization of the step-up to
fair value of acquired inventory and backlog.
|
|
(2) The
carrying value of our previously held TCC equity investments were
recognized at fair value at the TCC acquisition date.
|
|
(3)
Includes commitment fees recognized in Selling, general and
administrative.
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
|
Components of
Changes in Net Sales
|
|
|
Three Months Ended
September 30, 2024 Compared with Three
Months Ended September 30, 2023
|
|
(Unaudited)
|
|
Factors Contributing
to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
|
HVAC
|
6 %
|
|
— %
|
|
20 %
|
|
— %
|
|
26 %
|
|
Refrigeration
|
1 %
|
|
— %
|
|
— %
|
|
— %
|
|
1 %
|
|
Consolidated
|
4 %
|
|
— %
|
|
17 %
|
|
— %
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2024 Compared with Nine Months Ended
September 30, 2023
|
|
(Unaudited)
|
|
Factors Contributing
to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
|
HVAC
|
3 %
|
|
— %
|
|
20 %
|
|
— %
|
|
23 %
|
|
Refrigeration
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
Consolidated
|
2 %
|
|
(1) %
|
|
17 %
|
|
— %
|
|
18 %
|
|
Preliminary Free
Cash Flow Reconciliation
|
|
|
|
(Unaudited)
|
|
|
Nine Months
Ended
September 30,
|
|
(In
millions)
|
|
2024
|
|
2023
|
|
Preliminary net cash
flows provided by (used in) operating activities
|
|
$
431
|
|
$
1,545
|
|
Less: Capital
expenditures (1)
|
|
312
|
|
236
|
|
Free cash
flow
|
|
$
119
|
|
$
1,309
|
|
|
(1) Includes $10 million and $19
million of capital expenditures related to discontinued operations,
respectively.
|
|
Net Debt
Reconciliation
|
|
|
|
(Unaudited)
|
|
(In
millions)
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Long-term
debt
|
|
$
10,337
|
|
$
14,242
|
|
Current portion of
long-term debt
|
|
2,095
|
|
51
|
|
Less: Cash and cash
equivalents
|
|
2,225
|
|
9,852
|
|
Net
debt
|
|
$
10,207
|
|
$
4,441
|
|
Carrier Global
Corporation
|
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
|
Discontinued
operations, net of tax Reconciliation
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
(In millions,
except per share amounts)
|
|
2024
|
|
Discontinued
operations, net of tax
|
|
$
(117)
|
|
|
|
|
Summary of
adjustments, net of tax:
|
|
|
|
Divestiture-related
costs
|
|
$
33
|
|
Gain on sale of
Industrial business
|
|
(310)
|
|
AFFF legal
reserve
|
|
420
|
|
Tax specific
adjustments
|
|
26
|
|
Total
adjustments
|
|
$
169
|
|
|
|
|
Adjusted
Discontinued operations, net of tax
|
|
$
52
|
|
Adjusted diluted
earnings per share
|
|
$
0.06
|
|
Diluted EPS
Reconciliation - Adjusted
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
|
2024
|
|
Continuing
operations
|
|
$
0.77
|
|
Discontinued
operations
|
|
0.06
|
|
Total
|
|
$
0.83
|
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SOURCE Carrier Global Corporation
