United Technologies Completes Carrier Spinoff
Newly gained independence is a familiar feeling for Carrier
Carrier's separation from United Technologies Corporation (UTC) was completed April 3, 2020, but the company and its business strategies have been long in the making. Now publicly traded under the symbol CARR, shares of Carrier have begun "regular-way" trading on the NYSE.
“Against the backdrop of unprecedented global uncertainty, Carrier and its employees remain focused and continue to solve critical challenges — from improving indoor air quality, to protecting the world’s food and pharmaceutical supply and keeping people safe and secure," said Dave Gitlin, Carrier president and CEO. "I am honored to lead this fantastic company and now, more than ever, I am incredibly proud of the perseverance and resiliency of our talented workforce. For more than a century, Carrier has been a symbol of excellence, and as a standalone company, we have defined our own strategy, vision, culture, and priorities. We have an unmatched legacy and look forward to delivering sustainable long-term growth to our shareowners and other stakeholders.”
Restructuring The Market
According to Carrier, in 2018 UTC announced its intention to separate into three independent companies — Carrier, Otis, and UTC. It was in 2019 that UTC then announced its intention to merge with Raytheon Technologies. On spin day, UTC shareholders received 2.833 shares of RTX, 1 share of CARR, and a 0.5 share of OTIS common stock — for every one share of UTC common stock held on the record date.
Following the completion by UTC of its previously announced spin-offs of Carrier and Otis, Raytheon Company shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock was converted in the merger into the right to receive 2.3348 shares of United Technologies common stock — previously traded on the NYSE under the ticker symbol UTX. Upon closing of the merger, United Technologies’ name was changed to "Raytheon Technologies Corporation," and its shares of common stock began trading under the ticker symbol "RTX." United Technologies shareowners continue to hold their shares of United Technologies common stock, which now constitute shares of common stock of Raytheon Technologies Corporation.
Carrier is not a stranger to being an independent company, and it is continuing to move forward with its next iteration of HVAC manufacturing.
NEW SYMBOLS: Now publicly traded under the symbol CARR, shares of Carrier have begun "regular-way" trading on the NYSE.
The company intends to make a greater focus and enhanced agility based on its own distinct operating priorities and strategies for long-term growth and profitability, said Canzanella. This includes strengthening and growing its core businesses; extending its product range and geographical coverage; and expanding service and digital offerings.
The company will maintain three primary product sectors — HVAC, refrigeration, and fire and security. Each sector maintains seasoned leadership as Carrier continues to move forward.
“We are a world leader in providing energy-efficient solutions for buildings around the world,” said Gitlin. “We are deeply committed to driving a leadership position in sustainable solutions for the planet and for future generations. Strengthening our global community makes us a stronger company, creating shared value for our business and society. As a standalone company, we have the ability to leverage our legacy of industry leadership and sustainability to address the challenges of today and tomorrow while executing our vision and growth strategy.”
Carrier will continue to contribute to communities around the world through employee volunteerism and environmentally responsible operations, products, and services.
Carrier’s Current Situation
In the midst of these changes, Carrier is also working to protect the health, safety, and well-being of its employees. According to a statement released regarding COVID-19, protecting employees and serving customers remain the company’s top priority.
“We have taken important precautionary measures spanning all areas of our business, both in our offices and our manufacturing sites, to protect the safety, health, and well-being of our employees,” read the statement. “We have implemented travel restrictions, enhanced deep cleaning procedures across all facilities, modified processes to enable social distancing, and modified schedules to minimize employee gatherings, including remote working arrangements for those whose jobs allow. We have also provided comprehensive health and safety information to employees at all of our locations, and we will continue to work to identify additional ways to enhance the safety of our facilities.”
Considered essential, Carrier continues to run its business within the guidelines that officials are providing and remains fully operational. The pandemic may be the first challenge of the once-again independent company, but a company that has been around for more than a century has navigated tough times before and is ready to do so again.