Stock Analysis on Net
Stock Analysis on Net

Carrier Global Corp. (NYSE:CARR)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 26, 2023.

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Carrier Global Corp., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Product sales
Service sales
Net sales
Cost of products sold
Cost of services sold
Cost of products and services sold
Gross margin
Research and development
Selling, general and administrative
Equity method investment net earnings
Transaction gains
Impairment charge on minority-owned joint venture investments
Other
Other income (expense), net
Operating profit
Non-service pension benefit (expense)
Interest expense
Interest income
Interest income (expense), net
Income from operations before income taxes
Income tax expense
Net income from operations
Non-controlling interest in subsidiaries’ earnings from operations
Net income attributable to common shareowners

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The financial data reveals several key trends in the company’s performance over the three-year period ending December 31, 2022.

Sales Revenue
Product sales have shown consistent growth, increasing from $14,347 million in 2020 to $18,250 million in 2022. Conversely, service sales peaked in 2021 at $3,399 million but then declined significantly to $2,171 million in 2022. Overall, net sales increased from $17,456 million in 2020 to $20,613 million in 2021, but slightly declined to $20,421 million in 2022.
Cost of Goods Sold
The cost of products sold steadily rose, reaching $13,337 million in 2022, while the cost of services sold decreased to $1,620 million in 2022 from $2,333 million in 2021. Total cost of products and services sold increased from $12,347 million in 2020 to $14,957 million in 2022, reflecting higher production costs overall.
Gross Margin
Gross margin increased from $5,109 million in 2020 to $5,980 million in 2021, but decreased to $5,464 million in 2022. This suggests that higher sales in 2021 translated into improved profitability at the gross level, while the drop in margin in 2022 is partly due to the reduction in service sales and rising costs.
Operating Expenses
Research and development expenses steadily increased from $419 million in 2020 to $539 million in 2022. Selling, general and administrative expenses increased in 2021 but then declined notably to $2,512 million in 2022, indicating improved cost control in non-production areas.
Other Income and Expenses
Equity method investment net earnings showed a modest upward trend from $207 million in 2020 to $262 million in 2022. Transaction gains were recorded in 2020 but not thereafter. Impairment charges related to minority-owned joint venture investments decreased and were absent in 2022. Notably, other income (expense), net saw a substantial increase from $39 million in 2021 to $1,840 million in 2022, significantly enhancing the overall income profile.
Operating Profit
Operating profit decreased from $3,083 million in 2020 to $2,645 million in 2021 but increased substantially to $4,515 million in 2022. The sharp rise in 2022 aligns with the significant increase in other income and the reduction in selling, general and administrative expenses.
Interest and Pension Items
Net interest expense declined from $288 million in 2020 to $219 million in 2022. The non-service pension benefit (expense) was positive in 2020 and 2021 but turned negative in 2022, though the amount was relatively small at $4 million.
Pre-tax and Net Income
Income from operations before income taxes follows the operating profit trend, decreasing in 2021 and then rising steeply to $4,292 million in 2022. Income tax expense has remained relatively stable, slightly decreasing over the years. Net income from operations more than doubled from $1,701 million in 2021 to $3,584 million in 2022 after a decline from 2020. Similarly, net income attributable to common shareowners increased notably to $3,534 million in 2022, reflecting overall improved profitability.
Minority Interest
Non-controlling interest in subsidiaries’ earnings increased in absolute terms from a loss of $24 million in 2020 to $50 million in 2022, indicating a growing impact of minority shareholders on consolidated earnings.