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    Carrier Global Corp (CARR)

    Board Change

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    Carrier Global Corporation is a global leader in intelligent climate and energy solutions, focusing on providing differentiated, digitally-enabled lifecycle solutions . The company's operations are divided into three main segments: HVAC, Refrigeration, and Fire & Security . Carrier's product portfolio includes industry-leading brands such as Carrier, Toshiba, Automated Logic, Carrier Transicold, Kidde, Edwards, and LenelS2, offering innovative heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies .

    1. HVAC - Provides products and services to meet heating, cooling, and ventilation needs, leveraging industry-leading brands to deliver innovative solutions.
    2. Refrigeration - Focuses on cold chain solutions for food, medicine, and other perishable cargo, ensuring safe and efficient transportation and storage.
    3. Fire & Security - Includes fire safety and security solutions, although Carrier plans to exit this segment .
    NamePositionStart DateShort Bio
    David GitlinChairman and Chief Executive OfficerJune 2019David Gitlin has been serving as the Chairman of the Board since April 2021 and as the President and Chief Executive Officer since June 2019. He was previously with United Technologies Corporation (UTC) .
    Ajay AgrawalSenior Vice President, Global Services and Healthy BuildingsMarch 2021Ajay Agrawal was appointed to this position in March 2021. He previously served as Senior Vice President, Strategy & Services for Carrier from October 2019 to March 2021 and held positions at Collins Aerospace .
    Kyle CrockettVice President, ControllerJanuary 2020Kyle Crockett was appointed as Vice President, Controller in January 2020. Before joining Carrier, he held several positions at General Motors .
    Patrick GorisSenior Vice President and Chief Financial OfficerNovember 2020Patrick Goris was appointed as the Senior Vice President and Chief Financial Officer in November 2020. He previously served as the CFO of Rockwell Automation, Inc. .
    Kevin J. O'ConnorSenior Vice President, Chief Legal Officer2020Kevin J. O'Connor was appointed as Senior Vice President and Chief Legal Officer in 2020. He joined Carrier from Point72 Asset Management and is set to step down on January 1, 2025 .
    Jurgen TimpermanPresident, Fire & SecurityFebruary 2019Jurgen Timperman was appointed as President, Fire & Security in February 2019. He previously served as President, Global Fire & Security Products .
    Nadia VilleneuveSenior Vice President, Chief Human Resources Officer2015Nadia Villeneuve was appointed as Senior Vice President, Chief Human Resources Officer in 2015. She previously served as Vice President and Chief Human Resources Officer for Pratt & Whitney .
    Timothy WhitePresident, RefrigerationAugust 2021Timothy White was appointed as President, Refrigeration in August 2021. Before joining Carrier, he was CEO, Onshore Wind Americas for General Electric .
    Francesca CampbellSenior Vice President and Chief Legal OfficerJanuary 1, 2025Francesca Campbell was appointed as Senior Vice President and Chief Legal Officer, with the announcement made on December 2, 2024. She will assume her role following Kevin O'Connor's departure on January 1, 2025 .
    1. Given the anticipated decline of 15% in light commercial HVAC in Q4 due to inventory adjustments, how do you plan to manage channel inventory levels to avoid impacting sales next year?
    2. With your strategy to price R-454B units 10% higher than R-410A units amid the SEER transition, how confident are you that this price increase won't negatively affect demand or market share, especially considering potential competitor pricing actions?
    3. You mentioned targeting over $200 million in cost synergies from the Viessmann acquisition by 2026; can you provide more details on the specific initiatives to achieve these synergies and the risks that could prevent you from realizing them?
    4. Given that organic orders are up over 20% despite headwinds in residential and light commercial HVAC in Europe and China, how sustainable is this growth, and what strategies do you have in place to mitigate these regional market challenges?
    5. Regarding the anticipated AFFF settlement and the potential to collect beyond the initial $615 million, what are the remaining liabilities, and how might they impact your future financial performance and ability to invest in key strategic areas?
    Program DetailsProgram 1Program 2
    Approval DateFebruary 2021 October 2024
    End Date/DurationN/AN/A
    Total Additional Amount$4.1 billion $3 billion
    Remaining Authorization$400 million $1.7 billion
    DetailsInitial authorization Additional authorization
    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    20251,200 2.242% Notes2.242 9.7% = (1,200 / 12,432) * 100
    2025836 4.375% Notes4.375 6.7% = (836 / 12,432) * 100
    2027900 2.493% Notes2.493 7.2% = (900 / 12,432) * 100
    2028836 4.125% Notes4.125 6.7% = (836 / 12,432) * 100
    20302,000 2.722% Notes2.722 16.1% = (2,000 / 12,432) * 100
    2031750 2.700% Notes2.700 6.0% = (750 / 12,432) * 100
    2032948 4.500% Notes4.500 7.6% = (948 / 12,432) * 100
    2034875 5.900% Notes5.900 7.0% = (875 / 12,432) * 100
    20401,500 3.377% Notes3.377 12.1% = (1,500 / 12,432) * 100
    20501,400 3.577% Notes3.577 11.3% = (1,400 / 12,432) * 100
    2054650 6.200% Notes6.200 5.2% = (650 / 12,432) * 100
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP2019 PresentCurrent auditor

    Recent developments and announcements about CARR.

    Corporate Leadership

      Board Change

      ·
      Jan 15, 2025, 10:58 PM

      Amy E. Miles has been appointed as an independent director to the Board of Directors of Carrier Global Corporation (CARR), effective January 15, 2025. She will also serve on the Board's Audit Committee and Governance Committee.

      Leadership Change

      ·
      Dec 3, 2024, 10:11 PM

      Kevin O'Connor is leaving his position as Senior Vice President and Chief Legal Officer at Carrier Global Corporation. He is stepping down with an expected departure date of January 1, 2025. Francesca Campbell has been appointed to take over his role as the new Senior Vice President and Chief Legal Officer .

    Financial Actions

      Debt Issuance

      ·
      Nov 8, 2024, 12:00 AM

      Carrier Global Corporation (CARR) Creates Direct Financial Obligation

      On November 8, 2024, Carrier Global Corporation (CARR) completed a private offering of €750,000,000 aggregate principal amount of 3.625% euro-denominated notes due 2037 (the “Notes”). The net proceeds from the sale of the Notes, along with cash on hand, were used to redeem the company’s 4.375% Notes due 2025 and to cover fees and expenses related to the offering .

      Details of the Obligation

      • Principal Amount: €750,000,000
      • Interest Rate: 3.625% per annum, payable annually on January 15, starting January 15, 2025
      • Maturity Date: January 15, 2037
      • Redemption Terms: Prior to October 15, 2036, the Notes can be redeemed at a “make-whole” premium plus accrued interest. On or after October 15, 2036, the Notes can be redeemed at 100% of the principal amount plus accrued interest .
      • Change of Control: If a change of control triggering event occurs, holders can require the company to purchase the Notes at 101% of the principal amount plus accrued interest .

      Potential Effects on Financial Health

      • Debt Levels: The issuance of the Notes increases Carrier’s long-term debt by €750,000,000, which could impact leverage ratios and interest coverage metrics.
      • Interest Expenses: The annual interest expense associated with the Notes will be approximately €27,187,500, which will affect the company’s net income and cash flow .
      • Liquidity: The redemption of the 4.375% Notes due 2025 will reduce short-term debt obligations, potentially improving liquidity in the near term .
      • Covenants: The Indenture includes covenants that limit the creation of liens, consolidation, mergers, and sale-leaseback transactions, which could restrict the company’s operational flexibility .

      This financial obligation is significant and will have various implications for Carrier’s balance sheet and overall financial health. It is important for stakeholders to monitor how the company manages this new debt and its impact on financial performance.

    Legal & Compliance

      Legal Proceedings

      ·
      Nov 8, 2024, 12:00 AM

      Summary of Legal Matter Involving Carrier Global Corporation (CARR):

      Key Parties Involved:

      • Carrier Global Corporation: The issuer of the notes.
      • Deutsche Bank Trust Company Americas: Acts as the trustee.
      • Initial Purchasers: Includes J.P. Morgan Securities plc, HSBC Continental Europe, Morgan Stanley & Co. International plc, and others involved in the purchase agreement.

      Nature of the Proceedings:

      • Carrier Global Corporation completed a private offering of €750,000,000 aggregate principal amount of 3.625% euro-denominated notes due 2037. The notes were issued under a Supplemental Indenture dated November 8, 2024, which supplements the Base Indenture dated November 29, 2023 .
      • The company used the proceeds from this offering to redeem its 4.375% Notes due 2025 and to cover fees and expenses related to the offering .
      • A Registration Rights Agreement was entered into, obligating Carrier to file a registration statement for an exchange offer or a shelf registration statement for resales of the notes .

      Potential Financial or Operational Consequences:

      • Financial Obligations: The issuance of the new notes creates a long-term financial obligation for Carrier, with interest payments due annually at a rate of 3.625% .
      • Redemption and Repurchase Options: Carrier has the option to redeem the notes before maturity under certain conditions, which could impact cash flow depending on market conditions and strategic financial decisions .
      • Covenants and Restrictions: The Indenture includes covenants that limit Carrier's ability to create liens, consolidate, merge, or sell assets, which could affect operational flexibility .
      • Change of Control Provisions: If a change of control event occurs, noteholders can require Carrier to repurchase the notes, potentially impacting financial stability .

      This legal matter involves significant financial transactions and obligations that could influence Carrier's financial strategy and operational decisions moving forward.