Carrier Global Corp (NYSE:CARR) stock fell 0.20% (As on January 17, 11:29:03 AM UTC-4, Source: Google Finance) after the company upgraded by Mizuho from a “neutral” rating to a “buy” rating. The firm .
Meanwhile, Carrier’s third quarter sales of $5.5 billion were up 2% compared to the prior year, despite the impact from the Chubb divestiture and foreign exchange. Organic sales grew 8% while the Chubb divestiture reduced sales by about 10%, acquisitions contributed 8% and currency translation reduced sales by 4%. The Toshiba Carrier Corporation acquisition closed August 1st and represented substantially all the sales growth from acquisitions in the quarter. HVAC had another strong organic growth quarter with residential and light commercial sales up 12% and commercial HVAC growing 15%. Commercial HVAC continued to see strong order trends, up double digits for the seventh consecutive quarter. Refrigeration sales were down 1% organically due to supply shortages and a decline in Container sales. Organic sales for the Fire & Security segment were up 5%. Adjusted operating profit of $861 million was flat compared to last year. Strong price realization helped mitigate continued supply chain challenges. Price/cost remained positive in the third quarter across all three segments.
Net cash flows from operating activities were $790 million and capital expenditures were $91 million, resulting in free cash flow of $699 million. Despite an improved free cash flow quarter, Carrier reduced full-year guidance from $1.65 billion to $1.4 billion as supply chain improvements are taking place later in the year than previously anticipated. During the third quarter, Carrier repurchased $247 million of its common stock.
Moreover, N.A. Resi heat pump sales up over 30%; European commercial heat pump orders up 30% Y/Y in Q3. Electric reefer orders continue to gain traction, up 25% Y/Y in Q3. Expect to save a major U.S. retailer nearly 20%, $90M in energy savings in 2022.
CARR has signed a strategic collaboration agreement with Amazon Web Services, Inc. (AWS), to offer additional industry-leading Software-as-a-Service (SaaS) solutions in AWS Marketplace. These solutions will include SaaS offerings in the areas of HVAC performance, sustainability, and safety and security. The collaboration is part of Carrier’s growing investment in digitally enabled lifecycle solutions designed to inspire confidence in the health and safety of indoor environments. The strategic collaboration agreement builds on Carrier’s ongoing work with AWS after joining the AWS Partner Network (APN) in 2021 to deliver digital solutions like Abound and Lynx to new types of customers.