United Tech's Carrier Unit Lays Out Standalone Strategy
February 10 2020 - 12:08PM
Dow Jones News
By Colin Kellaher
Carrier Global Corp., the heating, ventilation and
air-conditioning company being spun off by United Technologies
Corp. (UTX), on Monday outlined its strategy to boost revenue and
earnings on a standalone basis, including a $600 million
cost-cutting plan.
In an investor presentation, Carrier said it expects to drive
growth by investing in its sales force and product innovation;
increasing product extensions and geographic coverage; and culling
$600 million of supply-chain, factory and
general-and-administrative expenses by the end of 2022.
The company said it will increase its sales force by about 500
employees and boost research-and-development spending by roughly
$50 million.
Carrier said it expects sales to rise slightly this year from
$18.6 billion in 2019, and it forecast an increase of $25 million
to $75 million in adjusted operating profit.
Over the medium term, Carrier said it is targeting
mid-single-digit sales growth, high-single-digit adjusted per-share
earnings growth, and 90% to 100% free cash flow conversion.
United Technologies is spinning off Carrier and its Otis
Elevator units into separate, publicly traded companies as part of
a transformation that also involves a $135 billion deal to combine
its Collins Aerospace and Pratt & Whitney units with Raytheon
Co. (RTN) to create Raytheon Technologies Corp.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 10, 2020 11:53 ET (16:53 GMT)
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