By Colin Kellaher
Carrier Global Corp., the heating, ventilation and air-conditioning company being spun off by United Technologies, on Monday outlined its strategy to boost revenue and earnings on a standalone basis, including a $600 million cost-cutting plan.
In an investor presentation, Carrier said it expects to drive growth by investing in its sales force and product innovation; increasing product extensions and geographic coverage; and culling $600 million of supply-chain, factory and general-and-administrative expenses by the end of 2022.
The company said it will increase its sales force by about 500 employees and boost research-and-development spending by roughly $50 million.
Carrier said it expects sales to rise slightly this year from $18.6 billion in 2019, and it forecast an increase of $25 million to $75 million in adjusted operating profit.
Over the medium term, Carrier said it is targeting mid-single-digit sales growth, high-single-digit adjusted per-share earnings growth, and 90% to 100% free cash flow conversion.
United Technologies is spinning off Carrier and its Otis Elevator units into separate, publicly traded companies as part of a transformation that also involves a $135 billion deal to combine its Collins Aerospace and Pratt & Whitney units with Raytheon to create Raytheon Technologies Corp.
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