Otis cuts annual profit forecast after Iran war disrupts elevator shipments
Otis Worldwide Corporation OTIS | 0.00 |
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.
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.
