Latest news with #Gitlin
Yahoo
20-05-2025
- Business
- Yahoo
Carrier to spend $1B on US manufacturing
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. HVAC system maker Carrier Global announced last week it plans to invest $1 billion over the next five years to expand its U.S. manufacturing operations and workforce. The funds will go toward expanding existing facilities and building a new plant to support the production of components for its heat pumps and battery assemblies. The investment will also create 3,000 jobs in research and development and manufacturing, which adds to its workforce initiative launched in January that aims to hire 1,000 service technicians in the U.S. The money will support Carrier's broader U.S. operations, a company spokesperson said in an email, such as its recently announced workforce strategy, dubbed Carrier TechVantage Initiative. The program also aims to provide additional training to over 100,000 HVAC technicians within five years. The actions strive to address the growing demand for technical expertise in the commercial HVAC sector due to the rapid growth of data centers, industrial facilities and large-scale infrastructure projects, the company said in the January press release. The initiative is Carrier's push to keep up with the ever-evolving HVAC industry. While the program is included in the $1 billion investment, a specific dollar amount tied to the program was not disclosed, the spokesperson said. Other U.S. operations initiatives include the internal startup launched last year, Carrier Energy, which focuses on optimizing home energy use and supporting grid flexibility, including through heat pump production. The components for Carrier's heat pumps and battery assemblies are a necessity for the HVAC and smart products under its home energy management systems, or HEMS, which monitors energy consumption, the company said. Other HEMS products include solar photovoltaic and digital interconnectivity with the grid, according to Carrier's 2024 annual report. Heat pumps comprise 40% of Carrier's sales, driven by the demand that data centers are adding to the grid, Chairman and CEO David Gitlin said in a May 1 earnings call. The added demand is challenging for utilities during peak hours, he said. 'You think about what most of the demand is during peak, it's your HVAC system... You have both cooling and heating, putting demand on the grid during peak hours,' Gitlin said. The company has not yet selected a site for the new components facility and will not disclose specific details regarding the expansions, but it will share more details as plans progress, the Carrier spokesperson said. The money will also accelerate R&D, such as liquid cooling for data centers and battery-enabled climate solutions technologies under Carrier Energy, the company said. 'We are building for the future by creating high-quality, skilled trade careers and empowering American workers to lead the next generation of manufacturing,' Gitlin said in a statement. 'At the same time, it positions Carrier to capture the tremendous growth ahead in our industry and deliver smart, differentiated solutions for our customers.' Carrier has been adding partnerships to and expanding its data center infrastructure business. In February, the company launched Carrier QuantumLeap, which provides various solutions to manage the entire thermal life cycle for data centers. Later that same month, the company partnered with and invested an undisclosed amount through its venture capital subsidiary in computer hardware company ZutaCore. ZutaCore developed a two-phase direct-to-chip cooling technology for data centers, according to its website. In March, the HVAC system maker began a partnership with Google to strengthen grid resilience and support smarter energy management, according to the software developer's press release. Google will integrate Carrier's battery-powered HVAC technology delivered through its HEMS solutions by using Google Cloud's AI-powered analytics and weather forecast AI models, which Gitlin said will increase the energy efficiency of the infrastructure, reduce grid congestion and costs. 'We see this Google partnership as a tremendous win-win opportunity, not only for us and Google, but for our utility partners as well,' Gitlin said. Recommended Reading 8 manufacturers set to produce cold-climate heat pumps Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
CARR Q1 Earnings Call: Management Prioritizes Product Innovation, Cost Controls, and Tariff Mitigation
Heating, ventilation, air conditioning, and refrigeration company Carrier Global (NYSE:CARR) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 3.7% year on year to $5.22 billion. The company's full-year revenue guidance of $23 billion at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.65 per share was 10.9% above analysts' consensus estimates. Is now the time to buy CARR? Find out in our full research report (it's free). Revenue: $5.22 billion vs analyst estimates of $5.2 billion (3.7% year-on-year decline, in line) Adjusted EPS: $0.65 vs analyst estimates of $0.58 (10.9% beat) Adjusted EBITDA: $1.15 billion vs analyst estimates of $1.06 billion (22% margin, 7.7% beat) The company lifted its revenue guidance for the full year to $23 billion at the midpoint from $22.75 billion, a 1.1% increase Management raised its full-year Adjusted EPS guidance to $3.05 at the midpoint, a 1.7% increase Operating Margin: 12.1%, up from 7.1% in the same quarter last year Free Cash Flow was $420 million, up from -$64 million in the same quarter last year Organic Revenue rose 1.6% year on year, in line with the same quarter last year Market Capitalization: $64 billion Carrier Global's first quarter results reflected a combination of steady demand in core markets and management's focus on pricing actions, product mix benefits, and operational discipline. CEO David Gitlin emphasized the momentum in the Climate Solutions Americas segment, particularly in residential and commercial HVAC, along with notable progress in digital solutions and data center cooling. The quarter also saw continued growth in aftermarket services and new product introductions, offsetting softness in certain regional segments such as Asia and light commercial. Looking ahead, management raised revenue and adjusted earnings guidance for the year, citing effective tariff mitigation, increased productivity, and strong order backlogs. Gitlin stated that tariff-related headwinds would be offset by a mix of supply chain actions and pricing, while strategic investments in heat pump technology and partnerships, such as with Google for grid resilience, are expected to support growth. CFO Patrick Goris highlighted that cost containment and operating margin expansion remain key levers for achieving higher profit targets in a dynamic macro environment. Carrier's leadership attributed the quarter's results to product differentiation, aftermarket expansion, and successful execution of tariff mitigation strategies. Strategic partnerships and targeted investments in technology underpin the company's focus on margin growth and resilience against external pressures. Residential and Commercial Strength: Climate Solutions Americas saw about 20% sales growth in both residential and commercial HVAC, supported by regulatory mix benefits and new product launches, especially those leveraging low-global-warming-potential refrigerants like 454B. Aftermarket Momentum: The company's global aftermarket business grew at a double-digit pace, with attachment rates for service agreements on commercial chillers surpassing 60%, reflecting success in upselling value-added services. Tariff Mitigation Actions: Management reported that nearly all tariff exposure was neutralized through supply chain adjustments and productivity, with the remaining cost offset by pricing increases, particularly in the Americas segment. European Heat Pump Demand: Orders for heat pumps in Germany reached their highest first-quarter level in five years, driven by government subsidies and policy support for electrification, helping offset declines in legacy boiler sales. Strategic Partnerships and Digital Solutions: Carrier introduced a partnership with Google to integrate its home energy management systems with Google's AI and cloud analytics, aiming to improve grid efficiency and provide smarter energy solutions for customers. Carrier management expects mid-single-digit organic sales growth and continued margin improvement in the year ahead, driven by ongoing investments in differentiated products, digital solutions, and disciplined cost management. Product and Technology Investments: Expansion in data center cooling and launch of new heat pump products are expected to drive market share gains, particularly in Europe and the Americas. Tariff and Cost Management: The company's ability to offset tariff costs through supply chain actions and price increases is critical for maintaining operating margins, but continued volatility in input costs and trade policy remains a risk. Aftermarket and Service Expansion: Growth in aftermarket services, including higher attachment rates for service agreements and digital monitoring solutions, is intended to provide a recurring revenue stream and support overall profitability. Nigel Coe (Wolfe Research): Asked about the drivers and sustainability of mid-single-digit growth across segments; management pointed to strong Americas performance and tariff-related pricing, but flagged ongoing softness in light commercial and Asia. Julian Mitchell (Barclays): Queried margin progression in the Americas; CFO Patrick Goris explained seasonal improvements in Q2 and Q3, with second-half headwinds from tariffs and lower residential volumes. Andy Kaplowitz (Citigroup): Sought details on Viessmann's outlook and European margin recovery; management expects flat volumes but better product mix due to heat pump adoption, and sees margins rising to low-to-mid teens in coming years. Joe Ritchie (Goldman Sachs): Inquired about distributor inventory levels and the impact of refrigerant transition; CEO Gitlin noted elevated inventories and emphasized careful channel management to avoid second-half risk. Tommy Moll (Stephens): Requested specifics on the Google partnership and its monetization potential; management described early-stage projects focused on grid demand response and digital integration, with commercial details to be developed. In upcoming quarters, the StockStory team will watch (1) the progression of heat pump adoption and related European policy updates, (2) execution on data center cooling and digital product rollouts, and (3) the effectiveness of tariff mitigation and pricing strategies as trade dynamics evolve. Monitoring order backlog conversion and the impact of strategic partnerships, such as the Google collaboration, will also be essential for assessing Carrier's path to sustained growth. Carrier Global currently trades at a forward P/E ratio of 23.9×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Associated Press
29-04-2025
- Business
- Associated Press
Capital Group and KKR Launch Their First Two Public-Private Investment Solutions and Announce Plans to Expand Their Exclusive Strategic Partnership
LOS ANGELES and NEW YORK, April 29, 2025 /PRNewswire/ -- Leading global investment firms Capital Group and KKR today launched two interval funds focused on credit strategies, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. Since their strategic partnership was announced in May 2024, the organizations have been working together on opportunities to further broaden access to private market investment solutions and provide education for individual investors, financial advisors and institutional clients. Capital Group and KKR are already working on additional strategies and expect to deliver two equity-focused strategies intended to address different client needs and offer access to additional private markets asset classes. 'These solutions demonstrate the power of our combined scale and experience. We believe what Capital Group and KKR can do together is unmatched — blending best-in-class public and private market exposures to deliver diversified and differentiated investment outcomes at a compelling fee. I think of these public-private solutions as the best of both worlds,' said Capital Group President and CEO, Mike Gitlin. The two new interval funds employ a thoughtful and deliberate approach, designed from the ground up to deliver blended public-private markets exposure with a risk, return and liquidity profile driven by input from financial advisors and a focus on investor needs and outcomes. Defining features include: Just getting started 'Together with Capital Group, we are aiming to unlock the benefits of private investments for the 95%3 of individual investors who have not historically been able to invest in the private markets. We have only scratched the surface of what we can offer investors as we look to expand our collaboration across additional asset classes, geographies and formats. We entered this partnership knowing that our firms are highly aligned with collaborative cultures and complementary strengths―the launch of these first two funds shows what's possible when our teams come together,' said Joe Bae and Scott Nuttall, Co-CEOs of KKR. 'Expanding access to private markets is much more than two public-private credit solutions. A joint, cross-company project team is already working on public-private equity solutions. We're discussing how we can bring public-private model portfolio solutions to our clients,' said Gitlin. 'We believe there is a role for private market solutions in retirement, including target date strategies. We're working on the best way to bring public-private solutions to clients outside the U.S. And we're also seeing how Capital Group can work more closely with KKR to support their insurance business. Needless to say, there's a lot going on as we partner to build this category and best serve our clients,' Gitlin added. Investing in education Bringing public-private solutions to a broader audience is a critical first step in expanding access to private markets, and Capital Group and KKR are intent on ensuring the solutions can be successfully integrated into client portfolios and form part of turnkey solutions. 'Our partnership extends beyond products to the power of financial advice. Capital maintains relationships with more than 200,000 financial advisors across the United States. We have an opportunity as a trusted partner to help advisors deliver this significant advancement in our industry to their clients. We've built a knowledge platform to aide with understanding the category and are providing the tools needed to build client-centric portfolios using these strategies,' said Matt O'Connor, CEO of Capital Group's Client Group. The firms have built a robust educational platform to help financial advisors understand how to utilize private markets in client portfolios, which includes: 'The opportunity set for public-private solutions is untapped both globally and across asset classes,' said Eric Mogelof, KKR's Global Head of Client Solutions. 'Together, we are building a new public-private category for investors and the educational resources to equip advisors and individuals to learn more about private markets and the potential benefits of incorporating private assets into diversified portfolios. We are laser focused on serving the needs of investors, and we could not be more thrilled to take this next step in our partnership with Capital Group.' Capital Group manages more than $2.8 trillion in assets, while KKR manages more than $600 billion across private equity, real assets, insurance and credit. 1Source: Morningstar's Guide to Interval Funds; Exhibit 8 Redemption Frequencies and Percentages; Fund company filings data as of May 31, 2024. 2Total expense ratios indicated for the F3 share class of Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. Expense ratios are as of the fund's prospectus available at the time of publication and are estimated. The investment adviser is currently waiving/reimbursing a portion of other expenses. Net expense ratios reflect the waiver/reimbursement, without which they would have been higher. The waiver/reimbursement will be in effect through at least April 22, 2026. Please see the fund's most recent prospectus for details. 3Source: Capgemini Research Institute for Financial Services Analysis, 2024 and KKR analysis. About Capital Group Capital Group has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931. As of December 31, 2024, Capital Group manages more than $2.8 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. For more information, visit About KKR KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All company and product names mentioned are the property of their respective companies. Capital Client Group, Inc. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Media Contacts Lizzie Lowe Julia Kosygina Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, which can be obtained from a financial professional and should be read carefully before investing. KKR Credit Advisors (US) LLC serves as the sub-adviser with respect to the management of the private credit assets for Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. Capital Group and KKR are not affiliated. The two firms maintain an exclusive partnership to manage and deliver public-private investment solutions to investors. The equity-focused solutions may come in different product structures and respective roles for the parties than the first two products. The funds are interval funds that provide liquidity to shareholders through quarterly repurchase offers for up to 10% of their outstanding shares under normal circumstances. To the extent more than 10% of outstanding shares are tendered for repurchase, the redemption proceeds are distributed proportionately to redeeming investors ('proration'). Due to this repurchase limit, shareholders may be unable to liquidate all or a portion of their investment during a particular repurchase offer window. In addition, anticipating proration, some shareholders may request more shares to be repurchased than they actually wish, increasing the likelihood of proration. Shares are not listed on any stock exchange, and we do not expect a secondary market in the shares to develop. Due to these restrictions, investors should consider their investment in the funds to be subject to illiquidity risk. Investment strategies are not guaranteed to meet their objectives and are subject to loss. Investing in the funds is not suitable for all investors. Investors should consult their investment professional before making an investment decision and evaluate their ability to invest for the long term. Because of the nature of the funds' investments, the results of the funds' operations may be volatile. Accordingly, investors should understand that past performance is not indicative of future results. Bond investments may be worth more or less than the original cost when redeemed. High‐yield, lower‐rated securities involve greater risk than higher‐rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. The funds may invest in structured products, which generally entail risks associated with derivative instruments and bear risks of the underlying investments, index or reference obligation. These securities include asset-based finance securities, mortgage-related assets, and other asset-backed instruments, which may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market's perception of issuer creditworthiness; while generally supported by some form of government or private guarantee, there is no assurance that private guarantors will meet their obligations. While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations. The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. For example, the funds may purchase and write call and put options on futures, giving the holder the right to assume a long (call) or short (put) position in a futures contract at a specified price. There is no assurance of a liquid market for any futures or futures options contract at any time. Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity, and price volatility. These risks may be heightened in connection with investments in developing countries. The funds invest in private, illiquid credit securities, consisting primarily of loans and asset-backed finance securities. The funds may invest in or originate senior loans, which hold the most senior position in a business's capital structure. Some senior loans lack an active trading market and are subject to resale restrictions, leading to potential illiquidity. The funds may need to sell other investments or borrow to meet obligations. The funds may also invest in mezzanine debt, which is generally unsecured and subordinated, carrying higher credit and liquidity risk than investment-grade corporate obligations. Default rates for mezzanine debt have historically been higher than for investment-grade securities. Bank loans are often less liquid than other types of debt instruments and general market and financial conditions may affect the prepayment of bank loans, as such the prepayments cannot be predicted with accuracy. Illiquid assets are more difficult to sell and may become impossible to sell in volatile market conditions. Reduced liquidity may have an adverse impact on the market price of such holdings, and the funds may be unable to sell such holdings when necessary to meet their liquidity needs or to try to limit losses, or may be forced to sell at a loss. Illiquid assets are also generally difficult to value because they rarely have readily available market conditions. Such securities require fair value pricing, which is based on subjective judgments and may differ materially from the value that would be realized if the security were to be sold. The funds are non-diversified funds that have the ability to invest a larger percentage of assets in the securities of a smaller number of issuers than diversified funds. As a result, poor results by a single issuer could adversely affect fund results more than if the funds were invested in a larger number of issuers. The funds intend to declare daily dividends from net investment income and distribute the accrued dividends, which may fluctuate, to investors each month. Generally, dividends begin accruing on the day payment for shares is received by the funds. In the event the funds' distribution of net investment income exceeds their income and capital gains paid by the funds' underlying investments for tax purposes, a portion of such distribution may be classified as return of capital. The funds' current intention not to use borrowings other than for temporary and/or extraordinary purposes may result in a lower yield than they could otherwise achieve by using such strategies and may make it more difficult for the funds to achieve their investment objective, than if the funds used leverage on an ongoing basis. There can be no assurance that a change in market conditions or other factors will not result in a change in the funds' distribution rate at a future time. View original content to download multimedia: SOURCE Capital Group Companies
Yahoo
26-01-2025
- Climate
- Yahoo
DOTD gives update on Southeast Louisiana roadways as snow, ice clears
NEW ORLEANS (WGNO) — Temperatures are set to warm up going into the week, but icy conditions still remain on some roads and bridges days after a historic winter storm. 'We haven't seen this kind of snow since 1895 and it's not something that we practice for. We practice for ice events,' said DOTD Spokesperson Daniel Gitlin. It's something Gitlin says is new to everyone. Though he credits teamwork for getting the roads back open, saying that was a key factor. Thawing out heading into February 'You can prepare, and then the unexpected may happen. But the bottom line is, if you work together as a team and everybody's on the same page, then everything is going to work out regardless of what's thrown at you,' said Gitlin. With the icy roads in different locations since reopening the interstate, multiple crashes have caused bridges to go from open to closed again. Gitlin says that with the help of state police, this is all the procedure to prevent another incident from happening. 'You're having things refreeze overnight. We had to close the West Bank Expressway because of that. We don't want accidents. We want people to be safe. If we have to, open a road or close a road, we're going to do it. It's inconvenient. Yes. But we're going to do it because it's about safety,' said Gitlin. Boil water advisory issued for East Bank of New Orleans With warmer days on the horizon, Gitlin feels they are out of the woods and now focused on fully restoring the infrastructure. However, he warns drivers that melting ice could cause slicker roads. 'When you're getting off an exit, for example, slow it down a little bit. We're going to have a lot of traffic back on the road tomorrow, and we don't want to see accidents. We want to get the kids to school. We want to get everybody to work. We want to get this economy rolling,' said Gitlin. RTA says ferries and busses are back in service. For the latest road conditions, visit the DOTD made in fatal Amite head-on crash DOTD gives update on Southeast Louisiana roadways as snow, ice clears Settlement reached in lawsuit involving HGTV stars' companies: court records Harvey pedestrian killed in Plaquemines Parish crash Perplexity AI bid for TikTok could give US government 50% stake Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
