Carrier Global Corporation (CARR) Q3 2022 Earnings Call Transcript

Carrier Global Corporation (NYSE:CARR) Q3 2022 Results Conference Call October 27, 2022 7:30 AM ET

Company Participants

Sam Pearlstein - Vice President of Investor Relations

David Gitlin - Chairman and Chief Executive Officer

Patrick Goris - Chief Financial Officer

Conference Call Participants

Jeffrey Sprague - Vertical Research Partners

Nigel Coe - Wolfe Research

Julian Mitchell - Barclays

Deane Dray - RBC Capital Markets

Joe Ritchie - Goldman Sachs

Gustavo Gonzalez - Morgan Stanley

Tommy Moll - Stephens Bank

Steve Tusa - JPMorgan

Gautam Khanna - Cowen

Operator

Good morning, and welcome to Carrier's Third 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.

Sam Pearlstein

Thank you, and good morning, and welcome to Carrier's third 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. Let me start by saying how proud I am of this tremendous carrier team, which continues to deliver strong and consistent results.

Turning to Slide 2 for a summary of our Q3 results. We delivered 8% organic sales growth on the heels of continued traction on pricing. Total company organic orders were up 3% in the quarter, and our backlog is up about 10% year-over-year. Importantly, we continue to deliver double-digit aftermarket organic growth. Adjusted operating profit was slightly better than we expected, and price cost continues to be positive. We are tracking to about $300 million of gross productivity, about $100 million of which will come from G&A reductions.