Carrier Global Corporation (NYSE:CARR), a leader in air conditioning, heating, and refrigeration solutions, has announced the departure of Jurgen Timperman, President of Fire & Security, effective July 1, 2024. This move comes after the recent sale of the company's Security Access Solutions Business to Honeywell (NASDAQ:HON) on June 3, 2024, and ahead of the expected third-quarter sale of its Industrial Fire Business to Sentinel Capital Partners.
As outlined in the SEC filing dated June 21, 2024, Timperman's departure is classified as a "mutually agreeable termination" and "early retirement." Consequently, he will receive a series of compensatory benefits.
These include the vesting of restricted stock units (RSUs) granted under the legacy United Technologies Corporation (NYSE:RTX) equity incentive plan, the vesting of his equity grants for 2022 and 2023, and a prorated portion of his 2024 annual bonus reflecting the company's performance up to his separation date.
Moreover, Timperman is set to receive a retention bonus, which consists of a deal bonus and cash performance incentive awards for 2023 and 2024. His compensation package also includes 12 months of medical benefits, transition services, and outplacement services.
In exchange for these benefits, he has agreed to adhere to post-termination restrictions, including perpetual confidentiality, a two-year non-competition clause, a two-year non-solicitation clause regarding employees, customers, and suppliers, and a perpetual non-disparagement covenant.
Carrier Global's transition comes amid a strategic shift following the divestiture of certain business units, aligning with the company's focus on its core operations. The information regarding Timperman's departure and the terms of his separation are based on the company's latest 8-K filing with the Securities and Exchange Commission.
In other recent news, Carrier Global Corporation has made significant strides in its financial and operational goals. The company reported a robust Q1 2024 performance, with a 17% increase in sales to $6.2 billion and a 44% rise in adjusted operating profit to $927 million. Adjusted earnings per share also saw a 19% increase, reaching $0.62. These results highlight Carrier's continued momentum in its core businesses.
In a major development, Carrier sold its security business, Global Access Solutions, to Honeywell for $4.95 billion. This transaction is part of Carrier's ongoing transformation to focus on its core businesses. The company plans to use the net proceeds from this and upcoming sales to reduce its debt and aims to achieve a net leverage ratio of approximately 2x EBITDA by the end of 2024.
Investors should also note that Carrier has revised its full-year sales guidance to approximately $26 billion, with an adjusted operating margin of around 15.5%. The company also anticipates resuming share repurchases within the same timeframe. These recent developments reflect Carrier's strategic efforts to streamline operations and focus on high-growth areas.
InvestingPro Insights
In light of the recent management changes at Carrier Global Corporation (NYSE:CARR), investors might be interested in the company's financial health and market position. According to InvestingPro data, Carrier has a robust market capitalization of $56.53 billion and a Price/Earnings (P/E) ratio of 43.06, indicating a premium valuation relative to earnings. The company has experienced a solid revenue growth of 9.35% over the last twelve months as of Q1 2024, which is a positive sign for stakeholders considering the strategic shifts in the business.
From an investment standpoint, Carrier has been a consistent performer with a track record of raising its dividend for four consecutive years, as highlighted in one of the InvestingPro Tips. This could be appealing to income-focused investors. Moreover, the company has been a strong returner over the past decade, reinforcing its position as a solid player in the Building Products industry. Analysts remain optimistic about Carrier's profitability, with net income expected to grow this year and earnings revisions moving upwards for the upcoming period.
For investors seeking a deeper dive into Carrier's financial metrics and potential investment strategies, there are additional tips available on InvestingPro. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of financial data and expert analysis that can inform investment decisions.
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