Carrier Global subsidiary was disclosed on Tuesday to have provided services to Iran’s embassy in Austria twice after the parent company completed its 2024 acquisition of the German heating firm Viessmann, according to a Securities and Exchange Commission filing.
Key Facts on Carrier Global subsidiary
A subsidiary Carrier acquired in January 2024, known as Viessmann, performed heating maintenance for the Embassy of Iran in Austria on two occasions following the closing of the deal, the filing states. The services generated about 1,600 dollars in revenue and roughly 500 dollars in profit.
Carrier said in the filing that Viessmann “will not engage in any future transactions with the embassy,” noting the work stemmed from a contract signed before the acquisition closed.
Shares of Carrier, which trade under the ticker CARR, fell nearly 9 percent to 63.11 dollars on Tuesday. The drop came even as the company raised its full-year adjusted earnings-per-share outlook to about 2.90 dollars and projected up to 23 billion dollars in sales.
Big Number
52.4 billion dollars. That was Carrier Global’s market capitalization as of Tuesday.
Tangent
Carrier reported 6.4 billion dollars in sales in its latest quarter alongside adjusted earnings per share of 0.86 dollars, a 7 percent decline from a year earlier. The company also reported a 40 percent increase in orders, driven by a 65 percent jump in commercial HVAC orders.
Key Background
Carrier completed the Viessmann acquisition shortly after the start of 2024, paying roughly 12 billion euros, or about 12.9 billion dollars. The transaction ranks among the largest recent industrial deals in Europe and brought a wide network of European distributors and service agreements under Carrier’s ownership.
Some of those contracts predated the acquisition and led to the post-close service calls to Iran’s embassy. The services were disclosed under the Securities Exchange Act, which requires companies to report transactions involving sanctioned entities irrespective of their dollar value.
The disclosure comes as investors remain focused on large-cap corporate earnings, including recent results from tech giant Alphabet, and how markets react to regulatory and compliance developments across sectors.