Carrier Announces Restructuring of North American Businesses
20 July 1999
Carrier Announces Restructuring of North American Businesses
FARMINGTON, Conn.--July 19, 1999--Carrier Corporation announced today a restructuring of its North American businesses to better serve its markets, expand its customer focus and lower its operating costs.In particular, the North American heating, ventilation and air conditioning operations (HVAC), Carlyle Compressor Division, Carrier Refrigeration Operations, Carrier Electronics, as well as Carrier World Headquarters will play a role in this restructuring. The restructuring will include a reduction of approximately 400 salaried positions. This initiative will take place during the third quarter and affect six percent of Carrier's U.S. salaried work force.
Effective August 1, 1999, the three business units comprising North American HVAC Operations - Residential and Light Commercial Systems, Commercial Systems and Services, and Carrier Enterprises - will report directly to the president of Carrier Corporation. Staff functions will be integrated into World Headquarters.
Carrier President John R. Lord said, "Since the founding of Carrier Corporation in 1915, the North American heating, ventilation and air conditioning (HVAC) business provided Carrier the strength to expand globally. However, the market dynamics of the North American HVAC industry have made it necessary to further streamline operations and lower costs in order to maintain our market leading position."
In addition, Carrier announced that North American Operations President Guy Fauconneau, a 24-year Carrier veteran, will retire in 2000. In the interim, Fauconneau will continue to champion a number of special projects for Carrier, including the successful expansion of demand flow manufacturing in North America.
Fauconneau, who succeeded Lord as North American Operations President in May, 1996, led successful business turnarounds at Carrier's European Transcontinental Operations, Carrier Transicold and Carrier International.
"Carrier Corporation owes a debt of gratitude to Guy Fauconneau for his leadership and many contributions to our company," said Lord. "He has been a forceful advocate in implementing many key business initiatives. Carrier wouldn't be the company it is today if not for Guy's extraordinary leadership and knowledge of our business."
Carrier announced several staff changes as a result of the business reorganization and Fauconneau's retirement. Effective immediately, Frank Hartman is appointed president, Residential/Light Commercial Systems. John Malloy is appointed president, Commercial Systems and Services. Hartman and Malloy had been serving as Vice Presidents and General Managers of their respective business units.
George Saunders, President of Carrier Enterprises, will expand that management team and be joined by Ed Dabrowski as Chief Operating Officer. Dabrowski had been serving as Chief Financial Officer for North American Operations.
Carrier Corporation is the world's largest manufacturer of heating, air conditioning and refrigeration systems and equipment. It is a subsidiary of United Technologies Corporation, provider of a broad range of high-technology products and support services to the aerospace and building systems industries.