Otis lowers annual revenue forecast on muted new equipment sales

Reuters
Jul 23
Otis lowers annual revenue forecast on muted new equipment sales

July 23 (Reuters) - Elevator maker Otis Worldwide OTIS.N lowered its annual revenue forecast on Wednesday, anticipating sustained weakness in the demand for new equipment amid global macroeconomic uncertainty.

Shares of the Farmington, Connecticut-based company fell 10% premarket following the results.

Sales of new equipment remained under pressure during the second quarter, with declines in the Americas, China and Asia Pacific offseting the growth in the EMEA region.

Quarterly net sales in Otis' new equipment segment fell by 10% to $1.28 billion from a year ago.

China, a significant market for Otis, has also been denting the company's revenue due to a slow recovery in its property market and added risk from the fresh U.S. import tariffs.

The company's total net sales came in at $3.60 billion for the three months ended June 30, below analysts' average estimate of $3.71 billion, according to LSEG compiled data.

However, Otis' adjusted quarterly profit of $1.05 per share marginally surpassed estimates of $1.03.

The company expects its annual net sales to be between $14.5 billion and $14.6 billion, down from its earlier view of $14.6 billion to $14.8 billion.

It reiterated its full-year adjusted profit forecast of $4 to $4.10 per share, compared with analysts' estimates of $4.04 per share.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)

((Aatreyee.Dasgupta@thomsonreuters.com;))

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