Otis Cuts Sales View With Slowdown in China and U.S.

Otis Worldwide lowered its 2024 net sales forecast on July 24 on softening demand for its new equipment from North America and China, Reuters reports. The company expects its full-year net sales to be between US$14.3 billion and US$14.5 billion, down from its previous forecast of US$14.5 billion to US$14.8 billion. Sales growth in the U.S. decreased as construction activity slowed due to inflationary pressures, while a slow recovery in China’s property market hurt the company’s new equipment segment. Quarterly net sales for the company’s new equipment fell 11.4% from a year ago. However, net sales for its mainstay services segment rose 3% on steady demand. Otis’ total net sales slipped 3.2% to US$3.6 billion in the second quarter, missing analysts’ average estimate of US$3.73 billion, according to LSEG data. The company reported an adjusted profit of US$1.06 per share in the quarter ended June 30, slightly above expectation of US$1.03.