By Aatreyee Dasgupta
July 29 (Reuters) - Air conditioner maker Carrier Global ( CARR )
beat analysts' estimates for second-quarter profit and
revenue on Tuesday, but a late start to the summer led to a fall
in orders from residential customers.
The company now expects residential organic sales to
rise a mid-single digit percentage this year, down from its
prior forecast of a percentage growth between high single digits
and double digits.
Shares of the Florida-based company were down 10%.
Quarterly net sales of Carrier's biggest segment,
Climate Solutions Americas, rose 14% from a year ago, boosted by
a 45% rise in sales to commercial clients.
Increasing global temperatures fueled by climate change,
and rising air pollution, are sustaining demand for new air
conditioners and air purifiers, as well as for maintenance and
repair of old ones.
Total aftermarket sales for the quarter were up 13%.
The company also benefits from robust demand for its
products for cooling data centers used for artificial
intelligence technologies.
But a late start to the cooling season, which refers to
the high-demand summer months, contributed to a 60% fall in
orders from residential customers, compared with a 100% rise
last year.
"Residential sales were up 11%, below our expectations
due to lower volume," CFO Patrick Goris said during the
quarterly earnings call on Tuesday.
Carrier reiterated its annual sales forecast of nearly
$23 billion and adjusted profit forecast per share ranging
between $3 and $3.10, despite lowering its expectations for
residential sales.
Total net sales for the quarter ended June 30 rose 3%
from a year ago to $6.11 billion, compared with analysts'
estimate of $6.09 billion, according to data compiled by LSEG.
It reported a second-quarter adjusted profit of 92 cents
per share, compared with analysts' estimate of 90 cents per
share.