Carrier Global Corporation (CARR) Q4 2022 Earnings Call Transcript

Carrier Global Corporation (NYSE:CARR) Q4 2022 Results Conference Call February 7, 2023 8:00 AM ET

Company Participants

Samuel Pearlstein - Head of IR

David Gitlin - Chairman and Chief Executive Officer

Patrick Goris - Chief Financial Officer

Conference Call Participants

Julian Mitchell - Barclays

Joe Ritchie - Goldman Sachs

Jeffrey Sprague - Vertical Research Partners

Nigel Coe - Wolfe Research

Joshua Pokrzywinski - Morgan Stanley

Brett Linzey - Mizuho Securities

Deane Dray - RBC Capital Markets

Steve Tusa - JPMorgan

Gautam Khanna - Cowen

Operator

Good morning, ladies and gentlemen, and welcome to Carrier's Fourth Quarter 2022 Earnings Conference Call. I would like to introduce your host for today's conference, Sam Pearlstein, Vice President of Investor Relations. Please go ahead, sir.

Samuel Pearlstein

Thank you, and good morning, and welcome to Carrier's Fourth Quarter 2022 Earnings Conference Call. With me here today are David Gitlin, Chairman and Chief Executive Officer; and Patrick Goris, Chief Financial Officer.

We will be discussing certain non-GAAP measures on this call; which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in our earnings presentation, which is available to download from Carrier's website at ir.carrier.com.

The company reminds listeners that the sales, earnings and cash flow expectations and any other forward-looking statements provided during the call are subject to risks and uncertainties. Carrier's SEC filings, including Forms 10-K, 10-Q and 8-K, provide details on important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. [Operator Instructions].

With that, I'd like to turn the call over to our Chairman and CEO, Dave Gitlin.

David Gitlin

Thank you, Sam, and good morning, everyone. Our Q4 results for sales, earnings and cash flow were all in line with our expectations, as you can see starting on Slide 2.

We delivered organic sales growth of 5%, supported by another quarter of double-digit growth in light commercial and commercial HVAC, global truck and trailer and aftermarket. Pricing remained strong and our realization continued to offset inflationary headwinds. Supply chain improvements continued, allowing for a reduction of our past due shipments with further improvements anticipated in 2023.

Our backlog, which ended up mid-single digits year-over-year, up 40% on a two-year stack and up 2x from 2019 remains at very healthy levels. Adjusted operating margins of 10.1% were flattish compared to last year, despite a 70-basis point impact from the consolidation of the Toshiba joint venture. We made great progress on our productivity initiatives in the quarter and achieved our full year target of $300 million in savings.