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Carrier said data-center orders rose about 300% in the third quarter, helping push its backlog above $8.5 billion, as the heating and cooling equipment maker reported higher sales but a large accounting loss tied to its European business.
The company reported Thursday that total organic orders rose about 35% and commercial HVAC orders increased about 60%, excluding NORESCO. It said backlog reached a record and was up 60% from a year earlier.
Carrier also said it signed long-term agreements valued at multiple billions of dollars with minimum volume commitments. Those minimums are additional to the reported backlog, rather than part of the $8.5 billion figure.
European impairment drives reported loss
Third-quarter sales rose 12% to $6.263 billion, with organic sales up 15%. Adjusted operating profit rose 33% to $1.091 billion, and the adjusted operating margin increased to 17.4% from 14.8%.
Under generally accepted accounting principles, Carrier recorded an operating loss of $2.273 billion and a loss from continuing operations of $2.593 billion. The results included a $3.1 billion non-cash goodwill impairment charge related to its Climate Solutions Europe reporting unit.
The company reported a continuing-operations loss of $3.16 per share, compared with earnings of $0.47 a year earlier. Adjusted earnings per share, a non-GAAP measure, rose to $0.87 from $0.67.
The adjusted figure included a benefit of about $0.10 per share from IEEPA tariff refunds, net of the related non-controlling-interest impact. Carrier said the refunds contributed about $130 million to operating profit.
Cash from operating activities totaled $813 million. After $139 million in capital expenditures, free cash flow was $674 million.
Carrier said its earnings conference call would begin at 7:30 a.m. Eastern on Thursday.
JBizNews Desk | Palm Beach Gardens
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