Otis 3Q Results Buoy Full-Year Outlook

Otis reported on October 25 that its 3rd Quarter 2021 net sales were up 10.8% to US$3.6 billion, with new equipment orders up 3.8% and backlog up 4%. CEO Judy Marks said it was the third consecutive quarter of new equipment sales growth, and that units within the maintenance portfolio increased 3%. “Robust cash flow” facilitated Otis buying back US$725 million in shares and acquiring the remaining interest in Madrid-based subsidiary Zardoya Otis, she said. Net sales for the 3rd quarter increased 18.1% to US$1.7 billion, with a 14.7% increase in organic sales growth. Organic sales were up in the mid-teens in the Americas, low single digits in Europe, the Middle East and Africa (EMEA) and high teens in Asia. There was double-digit growth in organic sales in China. New equipment orders were up 3.8%, reflecting mid-teens growth in Asia that was partially offset by declines in the Americas and EMEA. Marks said that, despite the macro environment, the resiliency of the business and the 3rd quarter results “give us the confidence to improve our 2021 outlook and position us well to build on this momentum in 2022.”