Carrier Reports Third Quarter 2020 Results
"Carrier delivered solid third quarter results driven by very strong North American residential HVAC performance and continued traction on our growth and cost initiatives," said Carrier President & CEO
Carrier's third quarter sales of
These results benefited from volume growth in the HVAC business, aggressive cost containment, including accelerated savings under Carrier's three-year run-rate savings target, which has increased from
GAAP EPS of
Updated Full-Year 2020 Outlook*
Carrier is raising its full-year 2020 outlook and now anticipates:
- Sales of approximately
$17.3 billion , up from a range of$15.5 to$17.0 billion ; - Adjusted operating profit of approximately
$2.2 billion , up from a range of$1.8 to$2.0 billion ; and - Free cash flow of approximately
$1.5 billion , up from at least$1.1 billion . Carrier's stronger than expected free cash flow will support plans to reduce the Company's debt by$1.5 billion in the fourth quarter 2020.
*Note: When we provide expectations for adjusted operating profit and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.
Conference Call
Carrier will host a webcast of its earnings conference call today,
About Carrier
As the leading global provider of healthy, safe and sustainable building and cold chain solutions,
Use and Definitions of Non-GAAP Financial Measures
We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Organic sales, adjusted operating profit, adjusted net income, adjusted earnings per share ("EPS"), and the adjusted effective tax rate are non-GAAP financial measures. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a non-recurring and/or nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs and other significant items. Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs and other significant items. For the business segments, when applicable, adjustments of operating profit and margins represent operating profit, excluding restructuring and other significant items.
GAAP financial results include the impact of changes in foreign currency exchange rates (AFX). We use the non-GAAP measure "at constant currency" or "CFX" to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under GAAP, income statement results are translated in
Free cash flow is a non-GAAP financial measure that represents net cash flows provided by operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
When we provide our expectations for adjusted EPS, adjusted operating profit, adjusted effective tax rate, organic sales and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS, operating profit, the effective tax rate, sales and expected net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Cautionary Statement
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance or the separation from United Technologies (the "Separation"). Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, the estimated costs associated with the Separation, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the
The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's registration statement on Form 10 and the reports of Carrier on Forms, 10-Q and 8-K filed with or furnished to the
CARR-IR
Contact: |
Media Inquiries |
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561-365-1101 |
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Investor Relations |
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561-365-2251 |
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Condensed Consolidated Statement of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||
(dollars in millions, except per share amounts; shares in millions) |
2020 |
2019 |
2020 |
2019 |
|||||||||||
Net sales: |
|||||||||||||||
Product sales |
$ |
4,193 |
$ |
3,998 |
$ |
10,615 |
$ |
11,703 |
|||||||
Service sales |
809 |
824 |
2,247 |
2,404 |
|||||||||||
5,002 |
4,822 |
12,862 |
14,107 |
||||||||||||
Costs and expenses |
|||||||||||||||
Cost of products sold |
2,884 |
2,784 |
7,464 |
8,255 |
|||||||||||
Cost of services sold |
557 |
592 |
1,574 |
1,706 |
|||||||||||
Research and development |
100 |
102 |
292 |
302 |
|||||||||||
Selling, general and administrative |
681 |
702 |
2,010 |
2,066 |
|||||||||||
4,222 |
4,180 |
11,340 |
12,329 |
||||||||||||
Equity method investment net earnings |
62 |
78 |
148 |
198 |
|||||||||||
Other income (expense), net |
239 |
(91) |
168 |
(42) |
|||||||||||
Operating profit |
1,081 |
629 |
1,838 |
1,934 |
|||||||||||
Non-service pension benefit |
16 |
47 |
47 |
124 |
|||||||||||
Interest (expense) income, net |
(88) |
3 |
(206) |
23 |
|||||||||||
Income from operations before income taxes |
1,009 |
679 |
1,679 |
2,081 |
|||||||||||
Income tax expense |
261 |
175 |
560 |
380 |
|||||||||||
Net income from operations |
748 |
504 |
1,119 |
1,701 |
|||||||||||
Less: Non-controlling interest in subsidiaries' earnings from |
7 |
12 |
21 |
25 |
|||||||||||
Net income attributable to common shareowners |
$ |
741 |
$ |
492 |
$ |
1,098 |
$ |
1,676 |
|||||||
Earnings per share 1, 2 |
|||||||||||||||
Basic |
$ |
0.86 |
$ |
0.57 |
$ |
1.27 |
$ |
1.94 |
|||||||
Diluted |
$ |
0.84 |
$ |
0.57 |
$ |
1.25 |
$ |
1.94 |
|||||||
Weighted average number of shares outstanding 2 |
|||||||||||||||
Basic |
866.4 |
866.2 |
866.3 |
866.2 |
|||||||||||
Diluted |
881.5 |
866.2 |
876.2 |
866.2 |
|||||||||||
1 On |
2 Basic and diluted earnings per share for the three and nine months ended |
Segment |
|||||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||||||||||||||||||
(dollars in millions) |
Reported |
Adjusted |
Reported |
Adjusted |
Reported |
Adjusted |
Reported |
Adjusted |
|||||||||||||||||||||||
Net sales |
|||||||||||||||||||||||||||||||
HVAC |
$ |
2,892 |
$ |
2,892 |
$ |
2,602 |
$ |
2,602 |
$ |
7,142 |
$ |
7,142 |
$ |
7,505 |
$ |
7,505 |
|||||||||||||||
Refrigeration |
876 |
876 |
922 |
922 |
2,384 |
2,384 |
2,839 |
2,839 |
|||||||||||||||||||||||
Fire & Security |
1,324 |
1,324 |
1,402 |
1,402 |
3,587 |
3,587 |
4,078 |
4,078 |
|||||||||||||||||||||||
Segment sales |
5,092 |
5,092 |
4,926 |
4,926 |
13,113 |
13,113 |
14,422 |
14,422 |
|||||||||||||||||||||||
Eliminations and other |
(90) |
(90) |
(104) |
(104) |
(251) |
(251) |
(315) |
(315) |
|||||||||||||||||||||||
Net sales |
$ |
5,002 |
$ |
5,002 |
$ |
4,822 |
$ |
4,822 |
$ |
12,862 |
$ |
12,862 |
$ |
14,107 |
$ |
14,107 |
|||||||||||||||
Operating profit |
|||||||||||||||||||||||||||||||
HVAC |
$ |
839 |
$ |
598 |
$ |
404 |
$ |
524 |
$ |
1,364 |
$ |
1,199 |
$ |
1,242 |
1,363 |
||||||||||||||||
Refrigeration |
103 |
102 |
125 |
132 |
263 |
265 |
373 |
387 |
|||||||||||||||||||||||
Fire & Security |
200 |
204 |
205 |
219 |
426 |
442 |
521 |
556 |
|||||||||||||||||||||||
Segment operating profit |
1,142 |
904 |
734 |
875 |
2,053 |
1,906 |
2,136 |
2,306 |
|||||||||||||||||||||||
Eliminations and other |
(31) |
(9) |
(63) |
(15) |
(122) |
(40) |
(95) |
(47) |
|||||||||||||||||||||||
General corporate expenses |
(30) |
(28) |
(42) |
(42) |
(93) |
(87) |
(107) |
(107) |
|||||||||||||||||||||||
Operating profit |
$ |
1,081 |
$ |
867 |
$ |
629 |
$ |
818 |
$ |
1,838 |
$ |
1,779 |
$ |
1,934 |
$ |
2,152 |
|||||||||||||||
Segment operating profit margin |
|||||||||||||||||||||||||||||||
HVAC |
29.0 |
% |
20.7 |
% |
15.5 |
% |
20.1 |
% |
19.1 |
% |
16.8 |
% |
16.5 |
% |
18.2 |
% |
|||||||||||||||
Refrigeration |
11.8 |
% |
11.6 |
% |
13.6 |
% |
14.3 |
% |
11.0 |
% |
11.1 |
% |
13.1 |
% |
13.6 |
% |
|||||||||||||||
Fire & Security |
15.1 |
% |
15.4 |
% |
14.6 |
% |
15.6 |
% |
11.9 |
% |
12.3 |
% |
12.8 |
% |
13.6 |
% |
|||||||||||||||
Total segment operating profit |
22.4 |
% |
17.8 |
% |
14.9 |
% |
17.8 |
% |
15.7 |
% |
14.5 |
% |
14.8 |
% |
16.0 |
% |
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Operating Profit & Operating Profit Margin |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||
|
|
||||||||||||||||
(dollars in millions - Income (Expense)) |
2020 |
2019 |
2020 |
2019 |
|||||||||||||
HVAC |
|||||||||||||||||
Net sales |
$ |
2,892 |
$ |
2,602 |
$ |
7,142 |
$ |
7,505 |
|||||||||
Operating profit |
$ |
839 |
$ |
404 |
$ |
1,364 |
$ |
1,242 |
|||||||||
Restructuring |
— |
(12) |
(3) |
(47) |
|||||||||||||
Impairment charge on minority owned joint venture |
— |
(108) |
(71) |
(108) |
|||||||||||||
Gain on sale of investment |
252 |
— |
252 |
34 |
|||||||||||||
Separation costs |
— |
— |
(2) |
— |
|||||||||||||
Charge resulting from a litigation matter |
(11) |
— |
(11) |
— |
|||||||||||||
Adjusted operating profit |
$ |
598 |
$ |
524 |
$ |
1,199 |
$ |
1,363 |
|||||||||
Adjusted operating profit margin |
20.7 |
% |
20.1 |
% |
16.8 |
% |
18.2 |
% |
|||||||||
Refrigeration |
|||||||||||||||||
Net sales |
$ |
876 |
$ |
922 |
$ |
2,384 |
$ |
2,839 |
|||||||||
Operating profit |
$ |
103 |
$ |
125 |
$ |
263 |
$ |
373 |
|||||||||
Restructuring |
1 |
(7) |
(2) |
(14) |
|||||||||||||
Adjusted operating profit |
$ |
102 |
$ |
132 |
$ |
265 |
$ |
387 |
|||||||||
Adjusted operating profit margin |
11.6 |
% |
14.3 |
% |
11.1 |
% |
13.6 |
% |
|||||||||
Fire & Security |
|||||||||||||||||
Net sales |
$ |
1,324 |
$ |
1,402 |
$ |
3,587 |
$ |
4,078 |
|||||||||
Operating profit |
$ |
200 |
$ |
205 |
$ |
426 |
$ |
521 |
|||||||||
Restructuring |
(4) |
(14) |
(13) |
(35) |
|||||||||||||
Separation costs |
— |
— |
(3) |
— |
|||||||||||||
Adjusted operating profit |
$ |
204 |
$ |
219 |
$ |
442 |
$ |
556 |
|||||||||
Adjusted operating profit margin |
15.4 |
% |
15.6 |
% |
12.3 |
% |
13.6 |
% |
|||||||||
General Corporate Expenses and Eliminations and Other |
|||||||||||||||||
Net sales |
$ |
(90) |
$ |
(104) |
$ |
(251) |
$ |
(315) |
|||||||||
Operating profit |
$ |
(61) |
$ |
(105) |
$ |
(215) |
$ |
(202) |
|||||||||
Restructuring |
— |
(1) |
(1) |
(1) |
|||||||||||||
Consultant contract termination |
— |
(34) |
— |
(34) |
|||||||||||||
Separation costs |
(24) |
(13) |
(87) |
(13) |
|||||||||||||
Adjusted operating profit |
$ |
(37) |
$ |
(57) |
$ |
(127) |
$ |
(154) |
|||||||||
Carrier |
|||||||||||||||||
Net sales |
$ |
5,002 |
$ |
4,822 |
$ |
12,862 |
$ |
14,107 |
|||||||||
Operating profit |
$ |
1,081 |
$ |
629 |
$ |
1,838 |
$ |
1,934 |
|||||||||
Total restructuring costs |
(3) |
(34) |
(19) |
(97) |
|||||||||||||
Total non-recurring and non-operational items |
217 |
(155) |
78 |
(121) |
|||||||||||||
Adjusted operating profit |
$ |
867 |
$ |
818 |
$ |
1,779 |
$ |
2,152 |
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share, and Effective Tax Rate |
|||||||||||||||
(Unaudited) |
|||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||
(dollars in millions - Income (Expense)) |
2020 |
2019 |
2020 |
2019 |
|||||||||||
Net income attributable to common shareowners |
$ |
741 |
$ |
492 |
$ |
1,098 |
$ |
1,676 |
|||||||
Total restructuring costs |
(3) |
(34) |
(19) |
(97) |
|||||||||||
Total non-recurring and non-operational items included in |
217 |
(155) |
78 |
(121) |
|||||||||||
Non-recurring and non-operational items included in Interest expense, net: |
|||||||||||||||
Interest income associated with participation in amnesty settlement |
— |
— |
— |
8 |
|||||||||||
Interest income associated with |
— |
— |
— |
8 |
|||||||||||
Debt issuance costs relating to Carrier's separation from UTC |
— |
— |
(5) |
— |
|||||||||||
Non-recurring and non-operational items included in Interest expense, net |
— |
— |
(5) |
16 |
|||||||||||
Tax effect of restructuring and non-recurring and non-operational items |
(51) |
22 |
(29) |
31 |
|||||||||||
Significant non-recurring and non-operational items included in Income tax expense: |
|||||||||||||||
Favorable income tax adjustments related to tax amnesty |
— |
— |
— |
95 |
|||||||||||
Adjustments related to tax settlements |
— |
— |
— |
54 |
|||||||||||
Deferred tax adjustment resulting from the UTC separation |
— |
19 |
— |
19 |
|||||||||||
Adjustment related to a valuation allowance recorded against a |
— |
— |
(51) |
— |
|||||||||||
Adjustment resulting from Carrier's decision to no longer permanently reinvest certain pre-2018 unremitted non- |
— |
— |
(46) |
— |
|||||||||||
Deferred tax adjustment resulting from |
(12) |
— |
(12) |
— |
|||||||||||
Significant non-recurring and non-operational items included in Income tax expense |
(12) |
19 |
(109) |
168 |
|||||||||||
Total Non-recurring and non-operational items - Non-controlling interest |
— |
— |
— |
— |
|||||||||||
Total significant non-recurring and non-operational items |
151 |
(148) |
(84) |
(3) |
|||||||||||
Adjusted net income attributable to common shareowners |
$ |
590 |
$ |
640 |
$ |
1,182 |
$ |
1,679 |
|||||||
Diluted earnings per share |
$ |
0.84 |
$ |
0.57 |
$ |
1.25 |
$ |
1.94 |
|||||||
Impact on diluted earnings per share |
0.17 |
(0.17) |
(0.10) |
(0.01) |
|||||||||||
Adjusted diluted earnings per share |
$ |
0.67 |
$ |
0.74 |
$ |
1.35 |
$ |
1.95 |
|||||||
Effective tax rate |
25.9 |
% |
25.8 |
% |
33.4 |
% |
18.3 |
% |
|||||||
Impact on effective tax rate |
(1.0) |
% |
(0.9) |
% |
(7.4) |
% |
7.1 |
% |
|||||||
Adjusted effective tax rate |
24.9 |
% |
24.9 |
% |
26.0 |
% |
25.4 |
% |
Components of Changes in |
||||||||||||||
Three Months Ended |
||||||||||||||
(Unaudited) |
||||||||||||||
Factors Contributing to Total % change in |
||||||||||||||
Organic |
FX Translation |
Acquisitions / Divestitures, net |
Other |
Total |
||||||||||
HVAC |
11 |
% |
— |
% |
— |
% |
— |
% |
11 |
% |
||||
Refrigeration |
(6) |
% |
2 |
% |
(1) |
% |
— |
% |
(5) |
% |
||||
Fire & Security |
(7) |
% |
1 |
% |
— |
% |
— |
% |
(6) |
% |
||||
Consolidated |
3 |
% |
1 |
% |
— |
% |
— |
% |
4 |
% |
||||
Nine Months Ended |
||||||||||||||
(Unaudited) |
||||||||||||||
Factors Contributing to Total % change in |
||||||||||||||
Organic |
FX Translation |
Acquisitions / Divestitures, net |
Other |
Total |
||||||||||
HVAC |
(4) |
% |
(1) |
% |
— |
% |
— |
% |
(5) |
% |
||||
Refrigeration |
(15) |
% |
(1) |
% |
— |
% |
— |
% |
(16) |
% |
||||
Fire & Security |
(11) |
% |
(1) |
% |
— |
% |
— |
% |
(12) |
% |
||||
Consolidated |
(8) |
% |
(1) |
% |
— |
% |
— |
% |
(9) |
% |
Condensed Consolidated Balance Sheet |
|||||||
(Unaudited) |
|||||||
(dollars in millions) |
|
|
|||||
Assets |
|||||||
Cash and cash equivalents |
$ |
3,848 |
$ |
952 |
|||
Accounts receivable, net |
2,872 |
2,726 |
|||||
Contract assets, current |
753 |
622 |
|||||
Inventories, net |
1,581 |
1,332 |
|||||
Other assets, current |
280 |
327 |
|||||
Total current assets |
9,334 |
5,959 |
|||||
Future income tax benefits |
439 |
500 |
|||||
Fixed assets, net |
1,676 |
1,663 |
|||||
Operating lease right-of-use assets |
823 |
832 |
|||||
Intangible assets, net |
1,024 |
1,083 |
|||||
|
9,906 |
9,884 |
|||||
Pension and post-retirement assets |
574 |
490 |
|||||
Equity method investments |
1,696 |
1,739 |
|||||
Other assets |
256 |
256 |
|||||
Total Assets |
$ |
25,728 |
$ |
22,406 |
|||
Liabilities and Equity |
|||||||
Accounts payable |
$ |
2,019 |
$ |
1,701 |
|||
Accrued liabilities |
2,445 |
2,088 |
|||||
Contract liabilities, current |
495 |
443 |
|||||
Current portion of long-term debt |
223 |
237 |
|||||
Total current liabilities |
5,182 |
4,469 |
|||||
Long-term debt |
11,751 |
82 |
|||||
Future pension and post-retirement obligations |
473 |
456 |
|||||
Future income tax obligations |
471 |
1,099 |
|||||
Operating lease liabilities |
676 |
682 |
|||||
Other long-term liabilities |
1,738 |
1,183 |
|||||
Total Liabilities |
20,291 |
7,971 |
|||||
Equity |
|||||||
UTC Net investment |
— |
15,355 |
|||||
Common stock, par value |
9 |
— |
|||||
Additional paid-in capital |
5,327 |
— |
|||||
Retained earnings |
932 |
— |
|||||
Accumulated other comprehensive loss |
(1,172) |
(1,253) |
|||||
Non-controlling interest |
341 |
333 |
|||||
Total Equity |
5,437 |
14,435 |
|||||
Total Liabilities and Equity |
$ |
25,728 |
$ |
22,406 |
|||
Debt Ratios: 1 |
|||||||
Total debt to total capitalization |
69 |
% |
|||||
Net debt to net capitalization |
60 |
% |
|||||
1 Debt to total capitalization equals total debt divided by total debt plus equity. Net debt to net capitalization equals total debt less cash and cash equivalents divided by total debt plus equity less cash and cash equivalents. |
Condensed Consolidated Statement of Cash Flows |
||||||||
(Unaudited) |
||||||||
For the Nine Months Ended |
||||||||
(dollars in millions) |
2020 |
2019 |
||||||
Operating Activities |
||||||||
Net income from operations |
$ |
1,119 |
$ |
1,701 |
||||
Adjustments to reconcile net income from operations to net cash flows provided by operating activities, net of acquisitions and dispositions |
||||||||
Depreciation and amortization |
241 |
251 |
||||||
Deferred income tax provision |
121 |
(109) |
||||||
Stock compensation costs |
56 |
40 |
||||||
Equity method investment net earnings |
(148) |
(198) |
||||||
Distributions from equity method investments |
88 |
80 |
||||||
Impairment charge on minority-owned joint venture investments |
72 |
108 |
||||||
Gain on sale of investment |
(252) |
— |
||||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable, net |
(117) |
(205) |
||||||
Contract assets, current |
(120) |
(50) |
||||||
Inventories, net |
(237) |
(269) |
||||||
Other assets, current |
52 |
50 |
||||||
Accounts payable and accrued liabilities |
529 |
(198) |
||||||
Contract liabilities, current |
44 |
(10) |
||||||
Defined benefit plan contributions |
(29) |
(29) |
||||||
Other operating activities, net |
74 |
(173) |
||||||
Net cash flows provided by operating activities |
1,493 |
989 |
||||||
Investing Activities |
||||||||
Capital expenditures |
(151) |
(139) |
||||||
Proceeds on sale of investment |
300 |
— |
||||||
Receipt from settlement of derivative contracts |
67 |
— |
||||||
Other investing activities, net |
14 |
(11) |
||||||
Net cash flows provided by (used in) investing activities |
230 |
(150) |
||||||
Financing Activities |
||||||||
(Decrease) increase in short-term borrowings, net |
(22) |
43 |
||||||
Issuance of long-term debt |
11,762 |
106 |
||||||
Repayment of long-term debt |
(124) |
(98) |
||||||
Dividends paid on common stock |
(70) |
— |
||||||
Dividends paid to non-controlling interest |
(17) |
(4) |
||||||
Net transfers to UTC |
(10,359) |
(1,111) |
||||||
Other financing activities, net |
3 |
(31) |
||||||
Net cash flows provided by (used in) financing activities |
1,173 |
(1,095) |
||||||
Effect of foreign exchange rate changes on cash and cash equivalents |
— |
(12) |
||||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
2,896 |
(268) |
||||||
Cash, cash equivalents and restricted cash, beginning of period |
957 |
1,134 |
||||||
Cash, cash equivalents and restricted cash, end of period |
3,853 |
866 |
||||||
Less: restricted cash |
5 |
4 |
||||||
Cash and cash equivalents, end of period |
$ |
3,848 |
$ |
862 |
Free Cash Flow Reconciliation |
|||||||||||
(Unaudited) |
|||||||||||
For the Three Months Ended |
|||||||||||
(dollars in millions) |
2020 |
2019 |
|||||||||
Net income attributable to common shareowners |
$ |
96 |
$ |
400 |
|||||||
Net cash flows provided by operating activities |
$ |
47 |
$ |
(183) |
|||||||
Less: Capital expenditures |
48 |
41 |
|||||||||
Free cash flow |
$ |
(1) |
$ |
(224) |
|||||||
Free cash flow as a percentage of net income attributable to common shareowners |
(1)% |
(56)% |
|||||||||
(Unaudited) |
|||||||||||
For the Three Months Ended |
|||||||||||
(dollars in millions) |
2020 |
2019 |
|||||||||
Net income attributable to common shareowners |
$ |
261 |
$ |
784 |
|||||||
Net cash flows provided by operating activities |
$ |
509 |
$ |
554 |
|||||||
Less: Capital expenditures |
46 |
48 |
|||||||||
Free cash flow |
$ |
463 |
$ |
506 |
|||||||
Free cash flow as a percentage of net income attributable to common shareowners |
177% |
65% |
|||||||||
(Unaudited) |
|||||||||||
For the Three Months Ended |
|||||||||||
(dollars in millions) |
2020 |
2019 |
|||||||||
Net income attributable to common shareowners |
$ |
741 |
$ |
492 |
|||||||
Net cash flows provided by operating activities |
$ |
937 |
$ |
618 |
|||||||
Less: Capital expenditures |
57 |
50 |
|||||||||
Free cash flow |
$ |
880 |
$ |
568 |
|||||||
Free cash flow as a percentage of net income attributable to common shareowners |
119% |
115% |
|||||||||
(Unaudited) |
|||||||||||
For the Nine Months Ended |
|||||||||||
(dollars in millions) |
2020 |
2019 |
|||||||||
Net income attributable to common shareowners |
$ |
1,098 |
$ |
1,676 |
|||||||
Net cash flows provided by operating activities |
$ |
1,493 |
$ |
989 |
|||||||
Less: Capital expenditures |
151 |
139 |
|||||||||
Free cash flow |
$ |
1,342 |
$ |
850 |
|||||||
Free cash flow as a percentage of net income attributable to common shareowners |
122% |
51% |
View original content:http://www.prnewswire.com/news-releases/carrier-reports-third-quarter-2020-results-301162273.html
SOURCE