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Carrier Reports Strong Third Quarter 2024 Results

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Carrier Global (NYSE: CARR) reported strong Q3 2024 results with net sales of $6.0 billion, up 21% versus Q3 2023, including 4% organic growth. GAAP EPS from continuing operations was $0.62, while adjusted EPS was $0.77. The HVAC segment showed 6% organic growth, with Commercial HVAC in Americas up nearly 20%. The company's Board approved a $3 billion share repurchase authorization, bringing total authorization to $4.7 billion. The company updated its full-year 2024 guidance to reflect Fire & Security segment as discontinued operations, projecting sales of ~$22.5B with organic growth of ~3% and adjusted EPS of ~$2.50.

Carrier Global (NYSE: CARR) ha riportato risultati solidi per il terzo trimestre 2024, con vendite nette di $6,0 miliardi, in aumento del 21% rispetto al terzo trimestre 2023, comprendendo una crescita organica del 4%. L'utile per azione (EPS) GAAP dalle operazioni continuative è stato di $0,62, mentre l'EPS rettificato è stato di $0,77. Il segmento HVAC ha mostrato una crescita organica del 6%, con il Commercial HVAC nelle Americhe in aumento di quasi il 20%. Il consiglio di amministrazione della società ha approvato un 'autorizzazione all'acquisto di azioni di $3 miliardi', portando l'autorizzazione totale a $4,7 miliardi. L'azienda ha aggiornato le previsioni per l'intero anno 2024 per riflettere il segmento Fire & Security come operazioni discontinued, prevedendo vendite di circa ~$22,5 miliardi con una crescita organica di circa il 3% e un EPS rettificato di circa ~$2,50.

Carrier Global (NYSE: CARR) reportó fuertes resultados para el tercer trimestre de 2024, con ventas netas de $6.0 mil millones, un aumento del 21% en comparación con el tercer trimestre de 2023, incluyendo un crecimiento orgánico del 4%. El EPS GAAP de las operaciones continuas fue de $0.62, mientras que el EPS ajustado fue de $0.77. El segmento HVAC mostró un crecimiento orgánico del 6%, con el HVAC comercial en las Américas subiendo cerca del 20%. La Junta de la empresa aprobó una 'autorización de recompra de acciones de $3 mil millones', aumentando la autorización total a $4.7 mil millones. La empresa actualizó su guía para todo el año 2024 para reflejar el segmento de Fire & Security como operaciones discontinuadas, proyectando ventas de aproximadamente ~$22.5B con un crecimiento orgánico de aproximadamente 3% y un EPS ajustado de aproximadamente ~$2.50.

캐리어 글로벌 (NYSE: CARR)는 2024년 3분기 강력한 실적을 발표하였으며, 순매출은 $60억으로 2023년 3분기 대비 21% 증가했으며, 4%의 유기적 성장을 포함합니다. 지속 운영에서의 GAAP 주당순이익(EPS)은 $0.62였고, 조정 EPS는 $0.77이었습니다. HVAC 부문은 6%의 유기적 성장을 보였으며, 미국의 상업 HVAC는 거의 20% 증가했습니다. 회사 이사회는 '30억 달러 규모의 자사주 매입 승인'을 승인하여 총 승인을 47억 달러로 늘렸습니다. 이 회사는 Fire & Security 부문을 중단된 운영으로 반영하여 2024년 전체 연도 전망을 업데이트하였으며, 약 ~$225억의 매출과 약 3%의 유기적 성장, 약 ~$2.50의 조정 EPS를 예상하고 있습니다.

Carrier Global (NYSE: CARR) a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes nettes de $6,0 milliards, en hausse de 21 % par rapport au troisième trimestre 2023, incluant une croissance organique de 4 %. Le BPA GAAP des opérations continues était de 0,62 $, tandis que le BPA ajusté était de 0,77 $. Le segment HVAC a montré une croissance organique de 6 %, avec le HVAC commercial en Amérique augmentant de près de 20 %. Le conseil d'administration de l'entreprise a approuvé une 'autorisation de rachat d'actions de 3 milliards de dollars', portant l'autorisation totale à 4,7 milliards de dollars. L'entreprise a mis à jour ses prévisions pour l'année 2024 afin de refléter le segment Fire & Security en tant qu'opérations discontinuées, projetant des ventes d'environ ~$22,5 milliards avec une croissance organique d'environ 3 % et un BPA ajusté d'environ ~$2,50.

Carrier Global (NYSE: CARR) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit Nettoumsätzen von $6,0 Milliarden, was einem Anstieg von 21 % im Vergleich zum dritten Quartal 2023 entspricht, darunter 4 % organisches Wachstum. Der GAAP-Gewinn je Aktie (EPS) aus fortgeführten Betrieben betrug $0,62, während der bereinigte EPS $0,77 betrug. Der HVAC-Sektor verzeichnete ein organisches Wachstum von 6 %, wobei das Commercial HVAC in den Amerikas fast um 20 % zulegte. Der Vorstand des Unternehmens genehmigte eine 'Aktienrückkaufautorisierung von $3 Milliarden', sodass die Gesamtautorisierung auf $4,7 Milliarden ansteigt. Das Unternehmen hat die Prognose für das gesamte Jahr 2024 aktualisiert, um das Segment Fire & Security als aufgegebene Betriebe widerzuspiegeln, und erwartet Umsätze von ca. ~$22,5 Milliarden mit einem organischen Wachstum von ca. 3 % und einen bereinigten EPS von ca. ~$2,50.

Positive
  • Net sales increased 21% to $6.0 billion with 4% organic growth
  • HVAC segment organic sales grew 6% with Commercial HVAC up nearly 20%
  • Board approved $3 billion share repurchase authorization
  • Aftermarket sales up 10%
  • Orders grew approximately 20%
Negative
  • Viessmann Climate Solutions sales down around 25% year-over-year
  • Negative free cash flow guidance of ~($0.2B) for 2024
  • HVAC sales declined in China
  • Declines in North America truck and trailer refrigeration segment

Insights

The Q3 2024 results demonstrate strong operational execution amid Carrier's strategic transformation. Sales reached $6.0 billion, up 21% year-over-year, with organic growth of 4% and a significant 17% contribution from acquisitions, notably Viessmann Climate Solutions.

Key performance highlights include robust HVAC performance in Americas with high-single-digit growth, particularly in Commercial HVAC (up nearly 20%). The $4.7 billion share repurchase authorization signals management's confidence in future performance and commitment to shareholder returns.

However, challenges persist in Asia Pacific, with declines in residential light commercial in China, while the Viessmann acquisition shows mixed results with sequential growth but year-over-year decline of about 25%. Free cash flow remains pressured at $119 million YTD due to substantial tax payments and transaction costs.

The strategic repositioning towards intelligent climate and energy solutions is gaining traction, evidenced by aftermarket growth of 10% and overall orders up 20%. The completion of portfolio transformation by year-end should streamline operations and enhance focus on core competencies.

The guidance update reflecting continuing operations projects sales of approximately $22.5 billion with organic growth of about 3%, indicating steady but modest growth expectations. The adjusted operating margin target of 15.5% suggests continued operational efficiency despite transformation costs.

The substantial share repurchase authorization could provide significant support for the stock price, while the successful resolution of AFFF-related settlements removes a key regulatory overhang.

  • 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

FAQ

What was Carrier's (CARR) Q3 2024 revenue?

Carrier reported Q3 2024 revenue of $6.0 billion, up 21% compared to the prior year.

What is Carrier's (CARR) new share repurchase authorization amount?

Carrier's Board approved a $3 billion share repurchase authorization, bringing the total authorization to approximately $4.7 billion.

What is Carrier's (CARR) organic sales growth for Q3 2024?

Carrier's organic sales growth for Q3 2024 was 4%, with HVAC segment showing 6% organic growth.

What is Carrier's (CARR) full-year 2024 sales guidance?

Carrier's updated full-year 2024 guidance projects sales of approximately $22.5 billion with organic growth of ~3%.

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