Summary
Carrier Global Corporation (CARR) reported a significant increase in its financial performance for the second quarter and first half of 2021 compared to the same periods in 2020. Net sales grew substantially, driven by a strong rebound across all three segments: HVAC, Refrigeration, and Fire & Security. This growth was largely organic, reflecting the global economic recovery from the COVID-19 pandemic and improved end-market demand. Profitability also saw considerable improvement, with operating profit and net income attributable to common shareowners increasing significantly. The company highlighted strong operational performance, productivity initiatives, and favorable product mix as key drivers of improved margins, although these were partially offset by rising commodity costs, supply chain inefficiencies, and increased selling, general, and administrative expenses as the company normalized spending. Management expressed confidence in the company's liquidity and ability to fund future operations and strategic initiatives, supported by operating cash flows and existing credit facilities. The company also announced a significant divestiture and an increased share repurchase program, signaling a strategic focus on portfolio optimization and shareholder returns.
Financial Highlights
50 data points| Revenue | $5.44B |
| R&D Expenses | $125.00M |
| SG&A Expenses | $813.00M |
| Operating Expenses | $4.76B |
| Operating Income | $783.00M |
| Net Income | $487.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 868.70M |
| Shares Outstanding (Diluted) | 890.90M |
Key Highlights
- 1Total Net Sales increased by 37% to $5.44 billion for the three months ended June 30, 2021, and by 29% to $10.14 billion for the six months ended June 30, 2021, compared to the prior year periods, demonstrating a strong recovery and growth.
- 2Net income attributable to common shareowners more than doubled, rising by 87% to $487 million for the three months and by 144% to $871 million for the six months ended June 30, 2021, indicating significant profitability improvements.
- 3Operating profit surged by 77% to $783 million for the quarter and by 79% to $1.35 billion for the six months, reflecting robust operational performance and the benefits of increased sales volumes.
- 4The HVAC segment led the revenue growth, with Net sales up 36% for the quarter and 32% for the six months, driven by strong performance in North America residential and light commercial businesses, as well as commercial HVAC demand.
- 5The company acquired Guangdong Giwee Group for $167 million (net of cash acquired), adding to its HVAC segment and contributing goodwill of $175 million.
- 6Carrier announced on July 26, 2021, an agreement to sell its Chubb Fire and Security business for $3.1 billion, indicating a strategic portfolio management move.
- 7The company significantly increased its share repurchase authorization, with a $1.75 billion increase to its existing $350 million program, signaling confidence and commitment to returning capital to shareholders.