01—Abstract
Summary
Summary of the 10-K filed February 7, 2023. Cited figures are marked; the original filing is the authoritative source.
Carrier Global Corporation reported fiscal year 2022 net sales of $20.4 billiona, representing a slight 1% decrease from the prior year.
Despite this marginal decline in reported sales, the company achieved an impressive 50%b increase in operating profit for its HVAC segment and a significant 146% increase for its Fire & Security segment. This robust profit growth was driven by organic sales increases, primarily due to pricing improvements across segments that effectively offset inflationary pressures and supply chain challenges. The company's strategic focus on healthy, safe, sustainable, and intelligent building and cold chain solutions, supported by strong brands and innovation, positions it well to capitalize on favorable secular trends.
Key strategic moves during the year included the acquisition of a majority stake in Toshiba Carrier Corporation (TCC) and the successful sale of its Chubb Fire and Security business. These actions, along with ongoing investments in digital capabilities and sustainability initiatives, underscore Carrier's commitment to long-term growth and shareholder value. The company also continued its share repurchase program, demonstrating confidence in its financial position and future prospects, while managing its debt effectively with a strong credit rating.
02—Key points
Key Highlights
- Carrier Global Corporation reported net sales of $20.4 billion for fiscal year 2022, a 1% decrease year-over-year.
- Operating profit saw significant year-over-year increases: HVAC segment up 50% and Fire & Security segment up 146%.
- Organic sales grew by 8%, driven by pricing improvements across all segments that offset inflation and supply chain issues.
- The company completed the acquisition of a majority stake in Toshiba Carrier Corporation (TCC) in August 2022, bolstering its HVAC segment.
- Carrier successfully divested its Chubb Fire and Security business in January 2022, generating significant proceeds and a gain on sale.
- The company returned capital to shareholders through dividends and share repurchases, repurchasing $1.4 billion in stock during 2022.
- Despite supply chain challenges, Carrier maintained a strong focus on innovation, sustainability, and digital solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Carrier Global Corp kept $0.21.
- Revenue$17.29B100.0%
- Cost of revenue−$12.99B75.1%
- Gross profit$4.30B24.9%
- Operating costs−$313.0M1.8%
- Operating income$3.98B23.0%
- Interest, other & tax−$400.0M2.3%
- Net income$3.58B20.7%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 7, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $17.29B$20.61B | −16.1% |
| Cost of Revenue | $12.99B— | — |
| Gross Profit | $4.30B— | — |
| R&D Expenses | $416.00M$503.00M | −17.3% |
| SG&A Expenses | $1.98B$3.12B | −36.6% |
| Operating Expenses | $15.38B$18.26B | −15.7% |
| Operating Income | $3.98B$2.65B | +50.6% |
| Interest Expense | $238.00M$319.00M | −25.4% |
| Net Income | $3.58B$1.66B | +115.4% |
| EPS (Basic) | $4.19$1.92 | +118.2% |
| EPS (Diluted) | $4.10$1.87 | +119.3% |
| Shares Outstanding (Basic) | 843.40M867.70M | −2.8% |
| Shares Outstanding (Diluted) | 861.20M890.30M | −3.3% |
05—Questions
Frequently Asked Questions
What were the key financial performance indicators for Carrier Global in 2022?
In 2022, Carrier Global reported net sales of $20.4 billion, a 1% decrease from 2021. However, operating profit saw substantial increases, with the HVAC segment growing by 50% and the Fire & Security segment by 146%, reflecting strong pricing power and operational efficiencies that offset inflationary pressures and supply chain challenges.
What were the significant strategic actions taken by Carrier in 2022?
Carrier's major strategic moves in 2022 included the acquisition of a majority ownership interest in Toshiba Carrier Corporation (TCC) to strengthen its HVAC portfolio and the completion of the sale of its Chubb Fire and Security business, which generated significant proceeds and a gain on sale.
How is Carrier addressing supply chain challenges and inflation?
Carrier is implementing proactive steps to mitigate supply chain challenges and inflationary cost pressures. These include working closely with suppliers to ensure product availability, implementing cost-saving initiatives, investing in supply chain resilience through automation and dual sourcing, and utilizing pricing improvements to offset rising costs. These efforts have helped to mitigate negative impacts on sales and results of operations.
What is Carrier's approach to capital allocation and shareholder returns?
Carrier returned capital to shareholders through dividends and share repurchases. The company paid dividends totaling $509 million in 2022 and continued its share repurchase program, buying back $1.4 billion of its common stock during the year, with approximately $2.2 billion remaining under its authorization as of December 31, 2022.
06—Continue