Otis Reevaluating Its Future in Russia

Elevator manufacturer Otis Worldwide Corp. announced on April 25 it is reevaluating its future in Russia amid the ongoing war in Ukraine, WGAU is among outlets to report. In an earnings conference call with industry analysts, Otis President and CEO Judy Marks said the company was disheartened by the conflict’s escalation and is exploring “alternatives for our Russia business that are in the best interests of all of our stakeholders.” The West has moved to cut off Russia’s access to its foreign reserves, limit imports of key technologies and take other restrictive actions. More than 300 companies have pulled out, and international supply chains have largely shut down after container company Maersk, UPS, DHL and other transportation firms exited Russia, the source reports. Marks said, “We have growing concerns about the long-term sustainability of Otis’ operations in Russia, especially with mounting regulations and supply chain disruptions,” as well as sanctions against Moscow. Marks said Otis would exclude Russia from its financial results and forecasts for the time being. The Farmington, Connecticut-based company said its operations in Russia represented approximately 2% of its 2021 revenue, based mostly on new equipment sales. In March, Otis announced it would not take new elevator and escalator orders in Russia and not make new investments in the country “for the time being.”