Carrier sales up 12%
25th July 2024
USA: Carrier has reported strong Q2 2024 financial results with sales up 12% to $6.7bn compared to last year.
This included organic growth of 2%, approximately 12% contribution from the acquisition of Viessmann Climate Solutions, offset by about 2% from divestitures.
“We delivered solid sales and roughly 30% orders growth as we continue to outperform in our markets,” stated Carrier chairman and CEO David Gitlin.
“Our strong operational execution drove 200 basis points of adjusted operating margin expansion and double-digit adjusted earnings growth. Year-to-date, we also closed on two of our four business exits, and the remaining two continue to track well.
“The proceeds from the exits, combined with our strong free cash flow performance, have enabled us to reduce net debt by about $5bn in the quarter and we now plan to repurchase about $1bn of shares in the second half of 2024.”
Organic sales in the HVAC segment were up 2%. HVAC sales in the Americas were up mid-single digits driven by continued strength in commercial and light commercial businesses both of which were up double-digits.
North America residential HVAC sales were up about mid-single digits. HVAC organic sales in EMEA were up low-single-digits with commercial HVAC up mid-teens, offsetting a decline in EMEA residential and Light commercial HVAC.
These organic figures exclude the contribution of Viessmann Climate Solutions which was down almost 30% year-over-year in the quarter, roughly one third of which was driven by lower solar PV sales.
HVAC sales in Asia Pacific were down high-single-digits with declines driven by residential light commercial in China, partially offset by Southeast Asia which was up double-digits.
Refrigeration sales were up 1% organically driven by over 30% growth in container, mostly offset by North America truck and trailer and commercial refrigeration.
GAAP operating profit in the quarter of $3.7bn was up over 650% from last year primarily due to the gain on the sale of Access Solutions and the addition of Viessmann Climate Solutions. Adjusted operating profit of $1.2bn was up 26%, mostly driven by the addition of Viessmann Climate Solutions.
