Summary
Carrier Global Corporation's (CARR) second-quarter 2022 results show a net sales decrease of 4% to $5.21 billion, primarily impacted by the divestiture of the Chubb Fire & Security business and ongoing supply chain challenges. Despite this, organic sales grew by 7%, driven by strong demand and pricing improvements across the HVAC and Refrigeration segments. Net income attributable to common shareholders increased by 18% year-over-year to $573 million, or $0.67 per diluted share. The company continues to manage costs effectively, with operating expenses down 25% largely due to the Chubb divestiture, and has a solid liquidity position with $3.0 billion in cash and cash equivalents. The six-month period paints a similar picture, with a 3% decrease in net sales to $9.87 billion, offset by a 9% organic sales growth. Net income attributable to common shareholders more than doubled to $1.95 billion ($2.25 per diluted share), significantly boosted by a substantial gain from the Chubb divestiture. The company is actively managing its portfolio, including the pending acquisition of a majority stake in Toshiba Carrier Corporation, and is focused on navigating persistent supply chain issues while benefiting from long-term secular trends in its core markets.
Financial Highlights
50 data points| Revenue | $5.21B |
| R&D Expenses | $122.00M |
| SG&A Expenses | $614.00M |
| Operating Expenses | $4.50B |
| Operating Income | $819.00M |
| Net Income | $573.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 845.70M |
| Shares Outstanding (Diluted) | 862.70M |
Key Highlights
- 1Total net sales for Q2 2022 decreased by 4% to $5.21 billion compared to Q2 2021, largely due to the Chubb divestiture and supply chain constraints.
- 2Organic sales grew by 7% in Q2 2022, indicating underlying demand strength, especially in the HVAC and Refrigeration segments.
- 3Net income attributable to common shareholders rose 18% year-over-year to $573 million in Q2 2022, with diluted EPS at $0.67.
- 4The company reported a significant net gain of $1.1 billion on the sale of its Chubb Fire & Security business in Q1 2022, which heavily influenced the six-month net income and operating profit.
- 5Operating expenses decreased by 25% in Q2 2022, primarily due to the absence of Chubb's operational costs and ongoing cost management initiatives.
- 6Carrier had a strong liquidity position with $3.0 billion in cash and cash equivalents as of June 30, 2022, and no outstanding borrowings under its revolving credit facility or commercial paper program.
- 7The company is progressing with the acquisition of a majority stake in Toshiba Carrier Corporation (TCC), expected to close in early August 2022.