Carrier has a ‘very good handle’ on managing inflation

Carrier Global CEO David Gitlin told CNBC on Tuesday that the home appliance’s company has a grasp on inflation that will allow it to pursue growth more aggressively.

“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.”

Part of the firm’s strategy includes raising prices, the executive said, but there’s also a focus on its own 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 appearance came after Carrier held an investor day event, which the market appeared to take positively. Shares of the Florida-based company rose 2.75% Tuesday in what was a down day for all three major U.S. stock indexes.

The market is currently experiencing intense volatility as Wall Street worries about the impacts of Russian aggression toward Ukraine. In addition, an anticipated interest rate hike in March by the Federal Reserve to control skyrocketing inflation is keeping investors on edge.

In general, Gitlin expressed confidence about Carrier’s financial position, including its debt load. He said its net debt now stands at less than $4 billion, down from around $10 billion when it spun off from former parent company United Technologies in 2020.

Carrier’s announced acquisition of Toshiba’s heating, ventilation and air conditioning segment should close soon, Gitlin said, adding that additional M&A activity could be on the horizon. The company also continues to return capital to shareholders through its dividend and buyback program, he added.

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