Otis cuts annual profit forecast after Iran war disrupts elevator shipments
OTIS•Second-quarter results and regional sales trends
- Its second-quarter adjusted profit came in at $1.01 per share, in line with analysts' average estimate, according to data compiled by LSEG.
- Second-quarter revenue rose 7% to $3.86 billion, above analysts' estimate of $3.76 billion.
- New equipment sales were flat at $1.3 billion in the second quarter from the year-ago period, as growth in the Americas and Asia Pacific was offset by a sharp decline in China and weaker demand in Europe, the Middle East and Africa.
Profit forecast cut after Middle East disruptions
July 22 (Reuters) - Elevator maker Otis Worldwide OTIS.N lowered its annual adjusted profit forecast on Wednesday after the U.S.-Israeli war on Iran delayed projects, disrupted shipments and weighed on new equipment sales.
Shares of the company were down 2.5% in premarket trading.
- Tariff pressures and disruptions caused by the Middle East conflict have emerged as fresh challenges for industrial companies, delaying projects and affecting global shipments.
- Otis cut its annual adjusted profit per share forecast to between $4.01 and $4.05, from its prior outlook of $4.20 to $4.24.
- It expects annual growth in organic sales of new equipment to be flat or a low-single-digit-percentage lower; organic service sales are expected to be up mid-to-high single digits.
