Elevator-maker Otis forecasts 2025 profit below estimates on weak China demand

Otis Worldwide

29/01/2025 11:44

Jan 29 (Reuters) - Otis  OTIS.N  forecast 2025 profit
below estimates and missed fourth-quarter profit expectations on
Wednesday on sustained weakness in demand for new equipment in
China, sending the shares of the elevator-maker down 2.5% before
the bell.
    It expects 2025 adjusted profit between $4 and $4.10 per
share, missing analysts' average estimate of $4.14, according to
LSEG data.
    The Chinese economy is struggling to fully recover from the
property market crisis, hurting Otis' new equipment sales in 
the quarter.
    Net sales in new equipment segment fell 7.4% to $1.36
billion in the fourth quarter. But total net sales rose 1.5% to
$3.68 billion and beat expectations on steady demand for
maintenance and repair.
    Otis posted quarterly adjusted profit of 93 cents per share,
compared with estimates of 96 cents. It expects full-year net
sales of $14.1 to $14.4 billion, below estimates of $14.6
billion.

 (Reporting by Aatreyee Dasgupta in Bengaluru)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))