Appliance Maker Carrier Has A Strategy To Manage Inflation, Says CEO

Home appliance firm Carrier Global already has a degree of control on rising costs because of inflation that will give the company the leverage to push more aggressively for growth, said the CEO of the company  David Gitlin, in a television interview.

“We feel like we have a very good handle on our inflationary issues. We’re 70% blocked on some of the things that we care about, like steel, aluminum, copper,” Gitlin said in an interview on “Mad Money.”

According to the CEO, increasing prices of its products is one of the elements of the strategy of the company, but it is also focusing on reducing costs of its operations.

“We’re driving cost out of the system, and the key to drive long-term shareholder value is growth,” he later added, listing factors including increased automation hours and dual-sourcing as ways Carrier has offset inflationary pressures.

Gitlin’s comments followed Carrier’s investor day event, which the market looked to view in a positive vein. Shares of the Florida-based firm surged 2.75 per cent on a day when all three major US stock indices fell.

The market is now witnessing high volatility as Wall Street frets over the consequences of Russia’s actions towards Ukraine. Furthermore, the Federal Reserve’s expected interest rate rise in March to combat soaring inflation is putting investors on edge.

Gitlin voiced broad optimism about Carrier’s financial status, including its debt load. He claims the business’s net debt is currently less than $4 billion, down from about $10 billion when it was split off from previous parent company United Technologies in 2020.

Gitlin predicted that Carrier’s announced acquisition of Toshiba’s heating, ventilation, and air conditioning sector will be completed shortly, and that other M&A activity might be on the horizon. He also stated that the company’s dividend and share buyback programmes continue to distribute funds to shareholders.

“We have an ability to now use our cash position to play offense, which is exciting,” Gitlin said.

(Adapted from


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