Summary
Carrier Global Corporation's (CARR) third-quarter 2022 results show a significant increase in net income attributable to common shareholders, driven by strong performance in the HVAC segment and substantial gains from the sale of its Chubb Fire & Security business and the acquisition of Toshiba Carrier Corporation (TCC). Despite a slight overall decrease in net sales year-over-year, primarily due to foreign currency translation and the divestiture of Chubb, the company demonstrated robust organic sales growth across its segments, particularly in HVAC, indicating strong underlying demand for its products and services. Profitability was bolstered by strategic pricing actions to offset inflationary pressures and supply chain costs, alongside significant non-cash gains from the TCC acquisition. Management highlights continued investment in innovation and supply chain resilience, while also actively returning capital to shareholders through share repurchases and dividends.
Financial Highlights
49 data points| Revenue | $5.45B |
| R&D Expenses | $143.00M |
| SG&A Expenses | $624.00M |
| Operating Expenses | $4.74B |
| Operating Income | $1.53B |
| Net Income | $1.31B |
| EPS (Basic) | $1.56 |
| EPS (Diluted) | $1.53 |
| Shares Outstanding (Basic) | 839.60M |
| Shares Outstanding (Diluted) | 856.50M |
Key Highlights
- 1Net income attributable to common shareholders significantly increased to $1.312 billion for the three months ended September 30, 2022, up from $469 million in the prior year period.
- 2Total net sales for the three months ended September 30, 2022, were $5.451 billion, a 2% increase year-over-year, driven by 8% organic sales growth.
- 3The HVAC segment showed strong performance with a 22% increase in net sales to $3.734 billion, boosted by pricing improvements and the partial acquisition of Toshiba Carrier Corporation (TCC).
- 4The company recognized a significant non-cash gain of $732 million from the fair value re-measurement of its previously held equity investment in TCC upon its acquisition.
- 5A substantial gain of $1.1 billion was recognized from the sale of the Chubb Fire & Security business, completed in January 2022.
- 6The company repurchased $1.3 billion of its common stock during the first nine months of 2022 and authorized an additional $2.0 billion increase to its share repurchase program in October 2022.
- 7Despite supply chain challenges and inflationary cost pressures, the company's pricing actions and productivity initiatives helped to partially offset these impacts on gross margin.