Otis cuts annual profit forecast after Iran war disrupts elevator shipments

Otis Worldwide Corporation

Otis Worldwide Corporation

OTIS

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- 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.

  • 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.