Truck, Trailer Reefer Weakness Hurts Carrier Global Profits
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Carrier Global profits dropped in the first quarter of 2024, with results hurt by weaker North American truck and trailer refrigeration sales, the company said April 25.
Palm Beach Gardens, Fla.-based Carrier posted Q1 net income of $269 million, or 29 cents per diluted share, compared with $373 million, 44 cents, in the year-ago period.
The parent company of transport refrigeration specialist Carrier Transicold’s Q1 sales totaled $6.18 billion, an increase of 17% from $5.27 billion in the prior year, including 2% organic growth and an about 16% contribution from the acquisition of Viessmann Climate Solutions. These gains were offset by about 1% from divestitures.
Europe-centric Viessmann Climate Solutions focuses on boilers, solar thermal systems, and domestic hot water tanks plus advanced biomass heating and control technology.
Today we shared our Q1 #earnings results. Here’s Chairman & CEO David Gitlin’s take on our first quarter performance. $CARR pic.twitter.com/zgstz0Cxdz — Carrier (@carrier) April 25, 2024
Carrier’s refrigeration unit reported $884 million in sales in Q1, compared with $898 million in sales in the year-ago period.
Refrigeration segment sales fell 2% on the back of North American truck and trailer and commercial refrigeration weakness, although this was mostly offset by a more than 50% jump in container sales, it said.
Globally, sales in the company’s truck and trailer refrigeration unit fell by a “low-teens” percentage, executives said during a quarterly analyst call, driven by what Carrier CFO Patrick Goris said was “market decline and [a] tough comparison in North America.”
North American truck and trailer sales for Q1 rose more than 40% year-over-year, Goris noted during the analyst call. Weaker overall demand and elevated field inventories also hurt truck and trailer sales in North America, he added.
Truck and trailer refrigeration orders globally fell around 45% year-over-year in Q1, according to a presentation slide deck. Meanwhile, container orders rose by 15%-20% year on year in the period. The refrigeration unit posted an operating margin of 11% in the most recent quarter, compared with 11.2% in the same period in 2023.
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The Q1 increase in refrigeration container sales and orders was expected. “We’re looking at a strong rebound in the container business, both in terms of the market and in terms of share,” Goris said.
Carrier CEO David Gitlin, meanwhile, emphasized during the call that he remains committed to the company despite rumors over a possible move. Gitlin, who sits on the board of The Boeing Co., said he was honored to be considered a candidate for the post of the troubled plane maker’s CEO, but had told both companies’ boards that he would be remaining at Carrier.
