PALM BEACH GARDENS, Fla.,
Oct. 28, 2021 /PRNewswire/
-- Carrier Global Corporation (NYSE: CARR) today reported
financial results for the third quarter of 2021 and updated its
full year outlook. Carrier is the leading global provider of
healthy, safe, sustainable and intelligent building and cold chain
solutions.
"We delivered a strong quarter driven by continued growth across
our portfolio," said Carrier Chairman & CEO David Gitlin. "Our results demonstrate continued
robust demand and reinforce our positive long-term outlook. Despite
supply chain challenges impacting our input costs and factory
output, our team has gone to great lengths to deliver superior
products and solutions to our customers. We are helping to address
critical societal needs, including climate change, indoor air
quality, and the safe distribution of food and vaccines. Our future
growth will be driven by our differentiated products and solutions,
which are supported by secular tailwinds propelling our healthy,
safe, sustainable and intelligent building and cold chain
solutions."
Third Quarter 2021 Results
Carrier's third quarter sales of $5.3
billion were up 7% compared to the prior year and organic
sales were up 4% over the same period. Sales strength continued in
the HVAC segment, with strong light commercial and aftermarket
sales performance offsetting the expected modest North American
residential HVAC decline in the quarter. Organic sales growth
of 14% for the Refrigeration segment was driven by strong Transport
refrigeration growth. Fire and Security sales were up 2%
organically driven by Fire and Security products growth. All
segments were impacted by cost and availability headwinds related
to supply chain challenges. GAAP operating profit in the quarter of
$828 million was down 23% from last
year and adjusted operating profit of $858
million was down 1%. These results reflect higher
volume and price realization offset by increased supply chain costs
and the absence of prior year cost containment activities related
to the COVID-19 pandemic. GAAP operating profit comparisons were
also impacted by the absence of a 2020 gain on the sale of Beijer
shares held as an investment.
Net income was $469 million, and
adjusted net income was $630 million.
GAAP EPS of $0.53 and adjusted EPS of
$0.71 included about a $0.05 benefit from a lower adjusted effective tax
rate. Net cash flows provided by operating activities were
$579 million and capital expenditures
were $74 million, resulting in free
cash flow of $505 million.
Updated Full-Year 2021 Outlook*
Carrier's updated outlook for 2021 is as follows including Chubb
results:
|
Updated
Outlook
|
Prior
Outlook
|
Sales
|
Up ~16%
Y/Y
Organic* +~13%
Y/Y
Acquisitions +1%
Y/Y
FX +2%
Y/Y
|
Up 14% - 16%
Y/Y
Organic* +10% -
12% Y/Y
Acquisitions +1%
Y/Y
FX +3%
Y/Y
|
Adjusted Operating
Margin*
|
>13.5%
|
>13.5%
|
Adjusted
EPS*
|
~$2.20
Adjusted Effective
Tax Rate* ~22%
|
$2.10 -
$2.20
Adjusted Effective
Tax Rate* ~24%
|
Free Cash
Flow*
|
~$1.9B
|
~$1.9B
|
*Note: When the company provides expectations for organic
sales, adjusted operating profit, adjusted operating margin,
adjusted effective tax rate, incremental margins/earnings
conversion, adjusted EPS and free cash flow on a forward-looking
basis, a reconciliation of the differences between the non-GAAP
expectations and the corresponding GAAP measures generally is not
available without unreasonable effort. See "Use and Definitions of
Non-GAAP Financial Measures" below for additional
information.
Conference Call
Carrier will host a webcast of its earnings conference call
today, Thursday, October 28, 2021, at
8:30 a.m. ET. To access the webcast,
visit the Events & Presentations section of the Carrier
Investor Relations site at
ir.carrier.com/news-and-events/events-and-presentations or to
listen to the earnings call by phone, dial (877) 742-9091.
About Carrier
As the leading global provider of healthy, safe, sustainable and
intelligent building and cold chain solutions, Carrier Global
Corporation is committed to making the world safer, sustainable and
more comfortable for generations to come. From the beginning, we've
led in inventing new technologies and entirely new industries.
Today, we continue to lead because we have a world-class, diverse
workforce that puts the customer at the center of everything we
do. For more information, visit
www.corporate.carrier.com or follow Carrier on social media at
@Carrier.
Cautionary Statement
This communication contains statements which, to the extent they
are not statements of historical or present fact, constitute
"forward-looking statements" under the securities laws. These
forward-looking statements are intended to provide management's
current expectations or plans for Carrier's future operating and
financial performance, based on assumptions currently believed to
be valid. Forward-looking statements can be identified by the use
of words such as "believe," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "outlook,"
"confident," "scenario" and other words of similar meaning in
connection with a discussion of future operating or financial
performance or the separation from United Technologies Corporation
(the "Separation"), since renamed Raytheon Technologies
Corporation. Forward-looking statements may include, among other
things, statements relating to future sales, earnings, cash flow,
results of operations, uses of cash, share repurchases, tax rates
and other measures of financial performance or potential future
plans, strategies or transactions of Carrier, the estimated costs
associated with the Separation, Carrier's plans with respect to its
indebtedness and other statements that are not historical facts.
All forward-looking statements involve risks, uncertainties and
other factors that may cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
For additional information on identifying factors that may cause
actual results to vary materially from those stated in
forward-looking statements, see Carrier's reports on Forms 10-K,
10-Q and 8-K filed with or furnished to the U.S. Securities and
Exchange Commission from time to time. Any forward-looking
statement speaks only as of the date on which it is made, and
Carrier assumes no obligation to update or revise such statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
CARR-IR
Contact:
|
Media
Inquiries
|
|
Danielle
Canzanella
|
|
561-365-1101
|
|
Danielle.Canzanella@Carrier.com
|
|
|
|
Investor
Relations
|
|
Sam
Pearlstein
|
|
561-365-2251
|
|
Sam.Pearlstein@Carrier.com
|
SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND
DEFINITIONS
Following are tables that present selected financial data of
Carrier Global Corporation ("Carrier"). Also included are
reconciliations of non-GAAP measures to their most comparable GAAP
measures.
Use and Definitions of Non-GAAP Financial
Measures
Carrier reports its financial results in accordance
with accounting principles generally accepted in the United States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP
measures differently, which limits the usefulness of these measures
for comparisons with such other companies. We encourage investors
to review our financial statements and publicly filed reports in
their entirety and not to rely on any single financial measure. A
reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables
attached to this release. The tables provide additional information
as to the items and amounts that have been excluded from the
adjusted measures.
Organic sales, adjusted operating profit, adjusted operating
margin, incremental margins / earnings conversion, earnings before
interest, taxes and depreciation and amortization ("EBITDA"),
adjusted EBITDA, adjusted net income, adjusted earnings per share
("EPS"), the adjusted effective tax rate, and net debt are non-GAAP
financial measures.
Organic sales represents consolidated net sales (a GAAP
measure), excluding the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and other significant items of a nonoperational nature
(hereinafter referred to as "other significant items"). Adjusted
operating profit represents operating profit (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted operating margin represents adjusted operating profit as a
percentage of net sales (a GAAP measure). Incremental margins
/ earnings conversion represents the year-over-year change in
adjusted operating profit divided by the year-over-year change in
net sales. EBITDA represents net income attributable to
common shareholders (a GAAP measure), adjusted for interest income
and expense, income tax expense, and depreciation and amortization.
Adjusted EBITDA represents EBITDA, as calculated above, excluding
non-service pension benefit, non-controlling interest in
subsidiaries' earnings from operations, restructuring costs and
other significant items. Adjusted net income represents net
income attributable to common shareowners (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted EPS represents diluted earnings per share (a GAAP
measure), excluding restructuring costs and other significant
items. The adjusted effective tax rate represents the effective tax
rate (a GAAP measure), excluding restructuring costs and other
significant items. Net debt represents long-term debt (a GAAP
measure) less cash and cash equivalents. For the business
segments, when applicable, adjustments of operating profit and
operating margins represent operating profit, excluding
restructuring and other significant items.
Free cash flow is a non-GAAP financial measure that represents
net cash flows provided by operating activities (a GAAP measure)
less capital expenditures. Management believes free cash flow
is a useful measure of liquidity and an additional basis for
assessing Carrier's ability to fund its activities, including the
financing of acquisitions, debt service, repurchases of Carrier's
common stock and distribution of earnings to shareowners.
When we provide our expectations for organic sales, adjusted
operating profit, adjusted operating margin, adjusted effective tax
rate, incremental margins/earnings conversion, adjusted EPS and
free cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures (expected net sales, operating profit, operating
margin, effective tax rate, incremental operating margin, diluted
EPS and net cash flows provided by operating activities) generally
is not available without unreasonable effort due to potentially
high variability, complexity and low visibility as to the items
that would be excluded from the GAAP measure in the relevant future
period, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, the impact and timing of potential acquisitions and
divestitures, future restructuring costs, and other structural
changes or their probable significance. The variability of
the excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.
Carrier Global
Corporation Condensed Consolidated Statement of
Operations
|
|
|
(Unaudited)
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
(dollars in
millions, except per share amounts; shares in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Product
sales
|
$
|
4,510
|
|
|
$
|
4,193
|
|
|
$
|
12,958
|
|
|
$
|
10,615
|
|
Service
sales
|
831
|
|
|
809
|
|
|
2,522
|
|
|
2,247
|
|
Total Net
sales
|
5,341
|
|
|
5,002
|
|
|
15,480
|
|
|
12,862
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
(3,172)
|
|
|
(2,884)
|
|
|
(9,131)
|
|
|
(7,464)
|
|
Cost of services
sold
|
(568)
|
|
|
(557)
|
|
|
(1,735)
|
|
|
(1,574)
|
|
Research and
development
|
(123)
|
|
|
(100)
|
|
|
(369)
|
|
|
(292)
|
|
Selling, general and
administrative
|
(748)
|
|
|
(681)
|
|
|
(2,304)
|
|
|
(2,010)
|
|
Total Costs and
expenses
|
(4,611)
|
|
|
(4,222)
|
|
|
(13,539)
|
|
|
(11,340)
|
|
Equity method
investment net earnings
|
76
|
|
|
62
|
|
|
201
|
|
|
148
|
|
Other income
(expense), net
|
22
|
|
|
239
|
|
|
40
|
|
|
168
|
|
Operating
profit
|
828
|
|
|
1,081
|
|
|
2,182
|
|
|
1,838
|
|
Non-service pension
(expense) benefit
|
14
|
|
|
16
|
|
|
51
|
|
|
47
|
|
Interest (expense)
income, net
|
(74)
|
|
|
(88)
|
|
|
(238)
|
|
|
(206)
|
|
Income from
operations before income taxes
|
768
|
|
|
1,009
|
|
|
1,995
|
|
|
1,679
|
|
Income tax (expense)
benefit
|
(288)
|
|
|
(261)
|
|
|
(626)
|
|
|
(560)
|
|
Net income from
operations
|
480
|
|
|
748
|
|
|
1,369
|
|
|
1,119
|
|
Less: Non-controlling
interest in subsidiaries' earnings from operations
|
11
|
|
|
7
|
|
|
29
|
|
|
21
|
|
Net income
attributable to common shareowners
|
$
|
469
|
|
|
$
|
741
|
|
|
$
|
1,340
|
|
|
$
|
1,098
|
|
|
|
|
|
|
|
|
|
Earnings per share
(1), (2)
|
|
|
|
|
|
|
|
Basic
|
$
|
0.54
|
|
|
$
|
0.86
|
|
|
$
|
1.54
|
|
|
$
|
1.27
|
|
Diluted
|
$
|
0.53
|
|
|
$
|
0.84
|
|
|
$
|
1.50
|
|
|
$
|
1.25
|
|
Weighted average
number of shares outstanding (2)
|
|
|
|
|
|
|
|
Basic
|
867.6
|
|
|
866.4
|
|
|
868.6
|
|
|
866.3
|
|
Diluted
|
892.0
|
|
|
881.5
|
|
|
890.9
|
|
|
876.2
|
|
|
|
|
|
|
|
|
|
(1)
|
On April 3, 2020,
United Technologies Corporation, since renamed Raytheon
Technologies Corporation ("UTC"), completed the spin-off of Carrier
into a separate publicly traded company (the "Separation"). The
Separation was completed through a pro-rata distribution (the
"Distribution") of all of the outstanding common stock of the
Company to UTC shareowners who held shares of UTC common stock as
of the close of business on March 19, 2020.
|
|
|
(2)
|
Basic and diluted
earnings per share for the nine months ended September 30, 2020 are
calculated using the weighted-average number of common shares
outstanding for the period beginning after the Distribution date.
Diluted earnings per share is computed by giving effect to all
potentially dilutive stock awards that are outstanding. For periods
prior to the Separation it was assumed that there were no dilutive
equity instruments as there were no equity awards in Carrier common
stock outstanding prior to the Separation.
|
Carrier Global
Corporation Condensed Consolidated Balance
Sheet
|
|
|
|
(Unaudited)
|
|
|
As
of
|
(dollars in
millions)
|
|
September 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,671
|
|
|
$
|
3,115
|
|
Accounts receivable,
net
|
|
2,669
|
|
|
2,781
|
|
Contract assets,
current
|
|
502
|
|
|
656
|
|
Inventories,
net
|
|
1,926
|
|
|
1,629
|
|
Assets held for
sale
|
|
3,148
|
|
|
—
|
|
Other assets,
current
|
|
384
|
|
|
343
|
|
Total current
assets
|
|
11,300
|
|
|
8,524
|
|
|
|
|
|
|
Future income tax
benefits
|
|
456
|
|
|
449
|
|
Fixed assets,
net
|
|
1,764
|
|
|
1,810
|
|
Operating lease
right-of-use assets
|
|
626
|
|
|
788
|
|
Intangible assets,
net
|
|
481
|
|
|
1,037
|
|
Goodwill
|
|
9,237
|
|
|
10,139
|
|
Pension and
post-retirement assets
|
|
25
|
|
|
554
|
|
Equity method
investments
|
|
1,619
|
|
|
1,513
|
|
Other
assets
|
|
280
|
|
|
279
|
|
Total
Assets
|
|
$
|
25,788
|
|
|
$
|
25,093
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
|
$
|
2,158
|
|
|
$
|
1,936
|
|
Accrued
liabilities
|
|
2,260
|
|
|
2,471
|
|
Contract liabilities,
current
|
|
418
|
|
|
512
|
|
Liabilities held for
sale
|
|
1,102
|
|
|
—
|
|
Current portion of
long-term debt
|
|
130
|
|
|
191
|
|
Total current
liabilities
|
|
6,068
|
|
|
5,110
|
|
|
|
|
|
|
Long-term
debt
|
|
9,558
|
|
|
10,036
|
|
Future pension and
post-retirement obligations
|
|
416
|
|
|
524
|
|
Future income tax
obligations
|
|
331
|
|
|
479
|
|
Operating lease
liabilities
|
|
515
|
|
|
642
|
|
Other long-term
liabilities
|
|
1,678
|
|
|
1,724
|
|
Total
Liabilities
|
|
18,566
|
|
|
18,515
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Common
stock
|
|
9
|
|
|
9
|
|
Treasury
stock
|
|
(276)
|
|
|
—
|
|
Additional paid-in
capital
|
|
5,384
|
|
|
5,345
|
|
Retained
earnings
|
|
2,774
|
|
|
1,643
|
|
Accumulated other
comprehensive loss
|
|
(991)
|
|
|
(745)
|
|
Non-controlling
interest
|
|
322
|
|
|
326
|
|
Total
Equity
|
|
7,222
|
|
|
6,578
|
|
Total Liabilities
and Equity
|
|
$
|
25,788
|
|
|
$
|
25,093
|
|
Carrier Global
Corporation Condensed Consolidated Statement of Cash
Flows
|
|
|
(Unaudited)
|
|
|
For the Nine
Months Ended
September 30,
|
(dollars in
millions)
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net income from
operations
|
|
$
|
1,369
|
|
|
$
|
1,119
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
251
|
|
|
241
|
|
Deferred income tax
provision
|
|
69
|
|
|
121
|
|
Stock-based
compensation costs
|
|
60
|
|
|
56
|
|
Equity method
investment net earnings
|
|
(201)
|
|
|
(148)
|
|
Distributions from
equity method investments
|
|
65
|
|
|
88
|
|
Impairment charge on
minority-owned joint venture investments
|
|
2
|
|
|
72
|
|
(Gain) loss on sale of
investments
|
|
(4)
|
|
|
(252)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(290)
|
|
|
(117)
|
|
Contract assets,
current
|
|
(66)
|
|
|
(120)
|
|
Inventories,
net
|
|
(344)
|
|
|
(237)
|
|
Other assets,
current
|
|
(20)
|
|
|
52
|
|
Accounts payable and
accrued liabilities
|
|
496
|
|
|
529
|
|
Contract liabilities,
current
|
|
43
|
|
|
44
|
|
Defined benefit plan
contributions
|
|
(29)
|
|
|
(29)
|
|
Other operating
activities, net
|
|
(77)
|
|
|
74
|
|
Net cash flows
provided by (used in) operating activities
|
|
1,324
|
|
|
1,493
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
|
(206)
|
|
|
(151)
|
|
Investments in
businesses, net of cash acquired
|
|
(214)
|
|
|
—
|
|
Disposition of
businesses
|
|
3
|
|
|
—
|
|
Proceeds on sale of
investments
|
|
—
|
|
|
300
|
|
Settlement of
derivative contracts, net
|
|
(18)
|
|
|
67
|
|
Other investing
activities, net
|
|
9
|
|
|
14
|
|
Net cash flows
provided by (used in) investing activities
|
|
(426)
|
|
|
230
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
(17)
|
|
|
(22)
|
|
Issuance of long-term
debt
|
|
122
|
|
|
11,762
|
|
Repayment of long-term
debt
|
|
(692)
|
|
|
(124)
|
|
Repurchases of common
stock
|
|
(275)
|
|
|
—
|
|
Dividends paid on
common stock
|
|
(313)
|
|
|
(70)
|
|
Dividends paid to
non-controlling interest
|
|
(32)
|
|
|
(17)
|
|
Net transfers to
UTC
|
|
—
|
|
|
(10,359)
|
|
Other financing
activities, net
|
|
(18)
|
|
|
3
|
|
Net cash flows
provided by (used in) financing activities
|
|
(1,225)
|
|
|
1,173
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(15)
|
|
|
—
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
(342)
|
|
|
2,896
|
|
Less: Change in cash
balances classified as assets held for sale
|
|
74
|
|
|
—
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
3,120
|
|
|
957
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
2,704
|
|
|
3,853
|
|
Less: restricted
cash
|
|
33
|
|
|
5
|
|
Cash and cash
equivalents, end of period
|
|
$
|
2,671
|
|
|
$
|
3,848
|
|
Carrier Global
Corporation Segment Net Sales and Operating Profit
Reported (GAAP) to Adjusted (Non-GAAP)
|
|
|
(Unaudited)
|
|
For the Three
Months Ended September 30,
|
|
For the Nine
Months Ended September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
(In
millions)
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$
|
3,054
|
|
|
$
|
3,054
|
|
|
$
|
2,892
|
|
|
$
|
2,892
|
|
|
$
|
8,660
|
|
|
$
|
8,660
|
|
|
$
|
7,142
|
|
|
$
|
7,142
|
|
Refrigeration
|
1,011
|
|
|
1,011
|
|
|
876
|
|
|
876
|
|
|
3,037
|
|
|
3,037
|
|
|
2,384
|
|
|
2,384
|
|
Fire &
Security
|
1,377
|
|
|
1,377
|
|
|
1,324
|
|
|
1,324
|
|
|
4,084
|
|
|
4,084
|
|
|
3,587
|
|
|
3,587
|
|
Segment
sales
|
5,442
|
|
|
5,442
|
|
|
5,092
|
|
|
5,092
|
|
|
15,781
|
|
|
15,781
|
|
|
13,113
|
|
|
13,113
|
|
Eliminations and
other
|
(101)
|
|
|
(101)
|
|
|
(90)
|
|
|
(90)
|
|
|
(301)
|
|
|
(301)
|
|
|
(251)
|
|
|
(251)
|
|
Net
sales
|
$
|
5,341
|
|
|
$
|
5,341
|
|
|
$
|
5,002
|
|
|
$
|
5,002
|
|
|
$
|
15,480
|
|
|
$
|
15,480
|
|
|
$
|
12,862
|
|
|
$
|
12,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$
|
573
|
|
|
$
|
583
|
|
$
|
839
|
|
|
$
|
598
|
|
|
$
|
1,511
|
|
|
$
|
1,534
|
|
|
$
|
1,364
|
|
|
$
|
1,199
|
|
Refrigeration
|
119
|
|
|
121
|
|
103
|
|
|
102
|
|
|
369
|
|
|
376
|
|
|
263
|
|
|
265
|
|
Fire &
Security
|
182
|
|
|
198
|
|
200
|
|
|
204
|
|
|
480
|
|
|
531
|
|
|
426
|
|
|
442
|
|
Segment operating
profit
|
874
|
|
|
902
|
|
1,142
|
|
|
904
|
|
|
2,360
|
|
|
2,441
|
|
|
2,053
|
|
|
1,906
|
|
Eliminations and
other
|
(10)
|
|
|
(10)
|
|
(31)
|
|
|
(9)
|
|
|
(73)
|
|
|
(56)
|
|
|
(122)
|
|
|
(40)
|
|
General corporate
expenses
|
(36)
|
|
|
(34)
|
|
(30)
|
|
|
(28)
|
|
|
(105)
|
|
|
(98)
|
|
|
(93)
|
|
|
(87)
|
|
Operating
profit
|
$
|
828
|
|
|
$
|
858
|
|
$
|
1,081
|
|
|
$
|
867
|
|
|
$
|
2,182
|
|
|
$
|
2,287
|
|
|
$
|
1,838
|
|
|
$
|
1,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
18.8
|
%
|
|
19.1
|
%
|
|
29.0
|
%
|
|
20.7
|
%
|
|
17.4
|
%
|
|
17.7
|
%
|
|
19.1
|
%
|
|
16.8
|
%
|
Refrigeration
|
11.8
|
%
|
|
12.0
|
%
|
|
11.8
|
%
|
|
11.6
|
%
|
|
12.2
|
%
|
|
12.4
|
%
|
|
11.0
|
%
|
|
11.1
|
%
|
Fire &
Security
|
13.2
|
%
|
|
14.4
|
%
|
|
15.1
|
%
|
|
15.4
|
%
|
|
11.8
|
%
|
|
13.0
|
%
|
|
11.9
|
%
|
|
12.3
|
%
|
Total
Carrier
|
15.5
|
%
|
|
16.1
|
%
|
|
21.6
|
%
|
|
17.3
|
%
|
|
14.1
|
%
|
|
14.8
|
%
|
|
14.3
|
%
|
|
13.8
|
%
|
Carrier Global
Corporation Reconciliation of Reported (GAAP) to Adjusted
(Non-GAAP) Operating Profit
|
|
|
|
(Unaudited)
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
September
30,
|
|
September
30,
|
|
(dollars in
millions - Income (Expense))
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
HVAC
|
|
|
|
|
|
|
Net sales
|
$
|
3,054
|
|
|
$
|
2,892
|
|
|
$
|
8,660
|
|
|
$
|
7,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
573
|
|
|
$
|
839
|
|
|
$
|
1,511
|
|
|
$
|
1,364
|
|
|
|
Restructuring
|
(7)
|
|
|
—
|
|
|
(18)
|
|
|
(3)
|
|
|
|
Gain on sales of
joint venture
|
—
|
|
|
252
|
|
|
—
|
|
|
252
|
|
|
|
Impairment of joint
venture investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
|
Separation
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
|
Charge resulting from
litigation matter
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
|
Acquisition-related
costs
|
(3)
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
|
Adjusted operating
profit
|
$
|
583
|
|
|
$
|
598
|
|
|
$
|
1,534
|
|
|
$
|
1,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Refrigeration
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,011
|
|
|
$
|
876
|
|
|
$
|
3,037
|
|
|
$
|
2,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
119
|
|
|
$
|
103
|
|
|
$
|
369
|
|
|
$
|
263
|
|
|
|
Restructuring
|
(2)
|
|
|
1
|
|
|
(7)
|
|
|
(2)
|
|
|
|
Adjusted operating
profit
|
$
|
121
|
|
|
$
|
102
|
|
|
$
|
376
|
|
|
$
|
265
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire &
Security
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,377
|
|
|
$
|
1,324
|
|
|
$
|
4,084
|
|
|
$
|
3,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
182
|
|
|
$
|
200
|
|
|
$
|
480
|
|
|
$
|
426
|
|
|
|
Restructuring
|
(3)
|
|
|
(4)
|
|
|
(23)
|
|
|
(13)
|
|
|
|
Separation
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
|
Chubb transaction
costs
|
(13)
|
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
|
Adjusted operating
profit
|
$
|
198
|
|
|
$
|
204
|
|
|
$
|
531
|
|
|
$
|
442
|
|
|
|
|
|
|
|
|
|
|
|
|
General Corporate
Expenses and Eliminations and Other
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
(101)
|
|
|
$
|
(90)
|
|
|
$
|
(301)
|
|
|
$
|
(251)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
(46)
|
|
|
$
|
(61)
|
|
|
$
|
(178)
|
|
|
$
|
(215)
|
|
|
|
Restructuring
|
(1)
|
|
|
—
|
|
|
(4)
|
|
|
(1)
|
|
|
|
Separation
costs
|
—
|
|
|
(24)
|
|
|
(19)
|
|
|
(87)
|
|
|
|
Chubb transaction
costs
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
|
Adjusted operating
profit
|
$
|
(44)
|
|
|
$
|
(37)
|
|
|
$
|
(154)
|
|
|
$
|
(127)
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
5,341
|
|
|
$
|
5,002
|
|
|
$
|
15,480
|
|
|
$
|
12,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
828
|
|
|
$
|
1,081
|
|
|
$
|
2,182
|
|
|
$
|
1,838
|
|
|
|
Total restructuring
costs
|
(13)
|
|
|
(3)
|
|
|
(52)
|
|
|
(19)
|
|
|
|
Total non-recurring
and non-operational items
|
(17)
|
|
|
217
|
|
|
(53)
|
|
|
78
|
|
|
|
Adjusted operating
profit
|
$
|
858
|
|
|
$
|
867
|
|
|
$
|
2,287
|
|
|
$
|
1,779
|
|
|
Carrier Global
Corporation Reconciliation of Reported (GAAP) to
Adjusted (Non-GAAP) Results Net Income, Earnings Per
Share, and Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three
Months Ended September 30, 2021
|
|
For the Nine
Months Ended September 30, 2021
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
|
5,341
|
|
|
$
|
—
|
|
|
$
|
5,341
|
|
|
$
|
15,480
|
|
|
$
|
—
|
|
|
$
|
15,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
828
|
|
|
30
|
|
a
|
858
|
|
|
2,182
|
|
|
105
|
|
a
|
2,287
|
|
Operating
margin
|
15.5
|
%
|
|
|
|
16.1
|
%
|
|
14.1
|
%
|
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
768
|
|
|
30
|
|
a, b
|
798
|
|
|
1,995
|
|
|
124
|
|
a,b
|
2,119
|
|
Income tax
expense
|
(288)
|
|
|
131
|
|
c
|
(157)
|
|
|
(626)
|
|
|
160
|
|
c
|
(466)
|
|
Income tax
rate
|
37.5
|
%
|
|
|
|
19.7
|
%
|
|
31.4
|
%
|
|
|
|
22.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareowners
|
$
|
469
|
|
|
$
|
161
|
|
|
$
|
630
|
|
|
$
|
1,340
|
|
|
$
|
284
|
|
|
$
|
1,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
|
13
|
|
a
|
|
|
|
|
$
|
52
|
|
a
|
|
Separation
costs
|
|
|
—
|
|
a
|
|
|
|
|
19
|
|
a
|
|
Acquisition-related
costs
|
|
|
3
|
|
a
|
|
|
|
|
5
|
|
a
|
|
Chubb transaction
costs
|
|
|
14
|
|
a
|
|
|
|
|
29
|
|
a
|
|
Debt prepayment
costs
|
|
|
—
|
|
b
|
|
|
|
|
19
|
|
b
|
|
Total
adjustments
|
|
|
$
|
30
|
|
|
|
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
|
(5)
|
|
|
|
|
|
|
$
|
(19)
|
|
|
|
Tax specific
adjustments
|
|
|
136
|
|
|
|
|
|
|
179
|
|
|
|
Total tax
adjustments
|
|
|
$
|
131
|
|
c
|
|
|
|
|
$
|
160
|
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
892.0
|
|
|
|
|
892.0
|
|
|
890.9
|
|
|
|
|
890.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- Diluted
|
$
|
0.53
|
|
|
|
|
$
|
0.71
|
|
|
$
|
1.50
|
|
|
|
|
$
|
1.82
|
|
Carrier Global
Corporation Reconciliation of Reported (GAAP) to Adjusted
(Non-GAAP) Results Net Income, Earnings Per Share, and
Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three
Months Ended September 30, 2020
|
|
For the Nine
Months Ended September 30, 2020
|
(In millions,
except per share amounts)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
|
5,002
|
|
|
$
|
—
|
|
|
$
|
5,002
|
|
|
$
|
12,862
|
|
|
$
|
—
|
|
|
$
|
12,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
1,081
|
|
|
(214)
|
|
a
|
867
|
|
|
1,838
|
|
|
(59)
|
|
a
|
1,779
|
|
Operating
margin
|
21.6
|
%
|
|
|
|
17.3
|
%
|
|
14.3
|
%
|
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
1,009
|
|
|
(214)
|
|
a,b
|
795
|
|
|
1,679
|
|
|
(54)
|
|
a,b
|
1,625
|
|
Income tax
expense
|
(261)
|
|
|
63
|
|
c
|
(198)
|
|
|
(560)
|
|
|
138
|
|
c
|
(422)
|
|
Income tax
rate
|
25.9
|
%
|
|
|
|
24.9
|
%
|
|
33.4
|
%
|
|
|
|
26.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareowners
|
$
|
741
|
|
|
$
|
(151)
|
|
|
$
|
590
|
|
|
$
|
1,098
|
|
|
$
|
84
|
|
|
$
|
1,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
|
3
|
|
a
|
|
|
|
|
$
|
19
|
|
a
|
|
Gain on sale of joint
venture
|
|
|
(252)
|
|
a
|
|
|
|
|
(252)
|
|
a
|
|
Impairment of equity
method investment
|
|
|
—
|
|
a
|
|
|
|
|
71
|
|
a
|
|
Charge resulting from
litigation matter
|
|
|
11
|
|
a
|
|
|
|
|
11
|
|
a
|
|
Separation
costs
|
|
|
24
|
|
a
|
|
|
|
|
92
|
|
a
|
|
Debt issuance
costs
|
|
|
—
|
|
b
|
|
|
|
|
5
|
|
b
|
|
Total
adjustments
|
|
|
$
|
(214)
|
|
|
|
|
|
|
$
|
(54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
|
51
|
|
|
|
|
|
|
$
|
29
|
|
|
|
Tax specific
adjustments
|
|
|
12
|
|
|
|
|
|
|
109
|
|
|
|
Total tax
adjustments
|
|
|
$
|
63
|
|
c
|
|
|
|
|
$
|
138
|
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
881.5
|
|
|
|
|
881.5
|
|
|
876.2
|
|
|
|
|
876.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- Diluted
|
$
|
0.84
|
|
|
|
|
$
|
0.67
|
|
|
$
|
1.25
|
|
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier Global
Corporation Reconciliation of Reported (GAAP) to Adjusted
(Non-GAAP) Results
|
|
Components of
Changes in Net Sales
|
|
Three Months Ended
September 30, 2021 Compared with Three Months Ended
September 30, 2020
|
|
(Unaudited)
|
|
Factors
Contributing to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
HVAC
|
2
|
%
|
|
1
|
%
|
|
3
|
%
|
|
—
|
%
|
|
6
|
%
|
Refrigeration
|
14
|
%
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
15
|
%
|
Fire &
Security
|
2
|
%
|
|
2
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4
|
%
|
Consolidated
|
4
|
%
|
|
1
|
%
|
|
2
|
%
|
|
—
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2021 Compared with Nine Months Ended September 30,
2020
|
|
(Unaudited)
|
|
Factors
Contributing to Total % change in Net Sales
|
|
Organic
|
|
FX T
ranslation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
HVAC
|
18
|
%
|
|
1
|
%
|
|
2
|
%
|
|
—
|
%
|
|
21
|
%
|
Refrigeration
|
23
|
%
|
|
4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
27
|
%
|
Fire &
Security
|
9
|
%
|
|
5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
14
|
%
|
Consolidated
|
16
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
%
|
|
20
|
%
|
Free Cash Flow
Reconciliation
|
|
|
|
(Unaudited)
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY
|
|
Q1
|
|
Q2
|
|
Q3
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
Net cash flows
provided by operating activities
|
|
$
|
47
|
|
|
$
|
509
|
|
|
$
|
937
|
|
|
$
|
199
|
|
|
$
|
1,692
|
|
|
$
|
184
|
|
|
$
|
561
|
|
|
$
|
579
|
|
Less: Capital
expenditures
|
|
48
|
|
|
46
|
|
|
57
|
|
|
161
|
|
312
|
|
|
53
|
|
|
79
|
|
|
74
|
|
Free cash
flow
|
|
$
|
(1)
|
|
|
$
|
463
|
|
|
$
|
880
|
|
|
$
|
38
|
|
|
$
|
1,380
|
|
|
$
|
131
|
|
|
$
|
482
|
|
|
$
|
505
|
|
Net Debt
Reconciliation
|
|
|
|
(Unaudited)
|
|
|
As
of
|
(dollars in
millions)
|
|
September 30,
2021
|
|
December 31,
2020
|
Long-term
debt
|
|
$
|
9,558
|
|
|
$
|
10,036
|
|
Current portion of
long-term debt
|
|
130
|
|
|
191
|
|
Less: Cash and cash
equivalents
|
|
2,671
|
|
|
3,115
|
|
Net
debt
|
|
$
|
7,017
|
|
|
$
|
7,112
|
|
View original
content:https://www.prnewswire.com/news-releases/carrier-reports-third-quarter-2021-results-301410436.html
SOURCE Carrier Global Corporation