(Reuters) – Carrier Global (NYSE:CARR) cut its annual revenue forecast on Thursday due to weak consumer spending on non-essential items such as heating, ventilation and air conditioning systems, sending its shares down more than 7%.
Households are deciding against spending on energy-efficient upgrades as persistent inflation eats into savings.
A slow housing market due to high mortgage rates and a surge in home prices have also impacted demand for the company’s heating and ventilation business in North America.
Carrier expects 2024 revenue to be $22.5 billion compared with its previous forecast of around $26 billion.
The company said it expects adjusted earnings per share to be about $2.5, lower than the midpoint of its prior expectation of between $2.80 to $2.90.
It reported a third-quarter net income of $447 million, or 49 cents per share, compared with $357 million, or 42 cents per share a year ago.