Carrier Global Q2 Profits Pegged Back by Sale Charge
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Carrier Global Corp. reported a narrowed second-quarter profit of $199 million, down from $573 million in the year-ago period, on the back of a charge related to the sale of fire suppression and detection unit Kidde-Fenwal Inc., it said July 27.
The parent company of refrigerated transportation original equipment manufacturer Carrier Transicold reported second-quarter sales of $5.99 billion, up 15% compared with the prior-year period’s $5.211 billion.
Palm Beach Gardens, Fla.-based Carrier said its refrigeration division’s Q2 sales fell 6% to $972 million from $1.041 billion in the year-ago period. The company attributed the decline to lower volumes in container and commercial refrigeration that were only partially offset by strength in global truck and trailer demand. The decrease in the segment’s earnings was expected, Carrier CEO David Gitlin said during the company’s earnings call July 27.
North American truck and trailer sales rose by double digits on a year-over-year basis, Chief Financial Officer Patrick Goris said during the call, without providing specifics, adding that orders were up 40% compared with Q2 2022.
The refrigerated unit delivered operating profit of $112 million in the three months ended June 30, compared with an operating profit of $147 million in the same period a year earlier. It reported an operating margin for the most recent quarter of 11.5%, compared with 14.1% a year earlier.
Carrier’s heating, ventilation and air conditioning division posted sales of $4.216 billion in the second quarter, compared with $3.388 billion in the year-ago period. The biggest unit at Carrier, the HVAC division posted an operating profit of $742 million in the most recent quarter, compared with $585 million a year earlier.
“We delivered another quarter of strong financial performance led by double-digit growth in commercial and light commercial HVAC, global truck and trailer, aftermarket and controls, which shows the strength of our execution, end-markets and backlog,” Gitlin said in a statement accompanying the earnings.
Gitlin added during the earnings call that with divestitures underway, including Kidde-Fenwal and the company’s commercial refrigeration operations, Carrier is now positioned to “become a true climate champion.”
The company aims to reduce its customers’ carbon footprint by more than one gigaton as part of its 2030 Environmental, Social and Governance goals. The company released its 2023 ESG Report on July 26.
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