Carrier (US:CARR)2025-02-11 16:14Financial Performance - For the year ended December 31, 2024, Carrier's net sales were $22.5 billion, with an operating profit of $2.6 billion[19]. - Total net sales for 2024 reached $22,486 million, a 18.0% increase from $18,951 million in 2023[285]. - Operating profit for 2024 was $2,646 million, compared to $2,160 million in 2023, marking a 21.5% increase[285]. - Net earnings attributable to common shareholders for 2024 were $5,604 million, significantly up from $1,349 million in 2023[285]. - Net earnings for 2024 reached $5,708 million, a significant increase from $1,440 million in 2023 and $3,584 million in 2022, reflecting strong operational performance[296]. - The total income before income taxes was $2,274 million, an increase of 13.8% from $1,999 million in 2023[415]. Sales and Revenue Composition - Net sales distribution: Americas (52%), EMEA (31%), Asia-Pacific (17%), with international operations representing approximately 50% of total net sales[19]. - New equipment accounted for 75% of net sales, while parts and service made up 25%[19]. - Product sales increased to $19,990 million in 2024, up 19.0% from $16,665 million in 2023[285]. - Service sales rose to $2,496 million, reflecting a 9.2% increase from $2,286 million in 2023[285]. - Total segment sales for 2024 reached $22,486 million, compared to $18,951 million in 2023, indicating a growth of approximately 8.1%[395]. Acquisitions and Divestitures - On January 2, 2024, Carrier completed the acquisition of the climate solutions business of Viessmann Group, enhancing its HVAC segment[26]. - Carrier sold its Access Solutions business for cash proceeds of $5.0 billion on June 2, 2024, recognizing a net gain of $1.8 billion[27]. - The sale of the Industrial Fire business generated cash proceeds of $1.4 billion on July 1, 2024, with a net gain of $319 million[28]. - Carrier completed the sale of its Commercial Refrigeration business for $679 million on October 1, 2024, recognizing a net gain of $292 million[29]. - The sale of the Commercial and Residential Fire business brought in $2.9 billion on December 2, 2024, with a net gain of $1.4 billion[30]. - The acquisition of the VCS Business was completed on January 2, 2024, for a total consideration of $14.2 billion, with 20% paid in stock and 80% in cash[347]. Employee and Operational Metrics - As of December 31, 2024, the company had approximately 48,000 employees worldwide, with 35% in the Americas, 36% in EMEA, and 29% in Asia Pacific[47]. - The total recordable incident rate (TRIR) for 2024 was 0.32, and the lost time incident rate (LTIR) was 0.15, indicating a focus on employee safety[51]. - The company promotes learning and development through various programs, including technical and leadership training, to enhance employee skills[49]. Financial Position and Assets - Total assets increased to $37,403 million in 2024, up from $32,822 million in 2023, representing a 14.3% growth[290]. - Total liabilities decreased to $23,008 million in 2024 from $23,817 million in 2023[290]. - The company’s total equity increased to $14,395 million by December 31, 2024, from $9,005 million in 2023[296]. - The Company reported a total long-term debt of $11,728 million in 2024, a decrease from $13,951 million in 2023, representing a reduction of 16.0%[346]. Research and Development - Research and development expenses increased to $686 million in 2024, up from $493 million in 2023 and $416 million in 2022, reflecting a focus on new product development and technology innovation[329]. Sustainability and Strategic Focus - Carrier's strategic focus includes investing in product and technology innovation, particularly in energy management solutions and sustainable technologies[18][34]. - The company aims to enhance its operational excellence through the Carrier Excellence framework, focusing on digitalization and supply chain productivity[40]. - The company has set ambitious sustainability goals to be achieved by 2030, including investing over $4 billion in intelligent climate and energy solutions[44]. - The company aims to avoid more than 1 gigaton of customer greenhouse gas emissions and achieve carbon neutral operations[44]. Stock and Shareholder Information - The company declared dividends of $0.795 per share in 2024, totaling $712 million, compared to $624 million in 2023[296]. - The company repurchased $1,943 million in common stock in 2024, up from $62 million in 2023[296]. - The company repurchased 70.1 million shares of common stock for an aggregate purchase price of $3.9 billion, leaving approximately $3.2 billion remaining under the current authorization as of December 31, 2024[390]. Taxation - The total income tax expense for 2024 was $1,062 million, which is a 103.9% increase compared to $521 million in 2023[417]. - The federal income tax expense in the United States increased to $920 million in 2024, up from $361 million in 2023[417]. - The total current income tax expense for 2024 was $1,414 million, which is a significant increase from $764 million in 2023[417].