By Will Feuer
Otis Worldwide, a Farmington-based elevator-and-escalator maker, has announced an increase in sales and earnings for the second quarter. The company has also introduced a cost-savings program to enhance its operations.
Financial Performance
During this period, Otis recorded a profit of $376 million, or 90 cents a share, compared to $321 million, or 76 cents a share, in the same period last year. Adjusted earnings per share reached 92 cents, surpassing analysts’ expectations of 86 cents, according to FactSet.
Moreover, sales grew by 6.7% to $3.72 billion, outpacing analysts’ expectations of $3.59 billion. Organic sales, which exclude currency fluctuations and other adjustments, also showed a significant increase of 9.5%.
Business Segments
In the New Equipment segment, sales rose by 4.6% to $1.60 billion. Additionally, Service sales experienced significant growth, climbing by 8.3% to $2.12 billion. However, New Equipment orders declined by 12% on a constant-currency basis, mainly due to a 32% drop in the Americas.
Positive Cash Flow
Otis generated $446 million in cash from operations during this quarter, marking a 26% increase compared to the previous year.
Cost-Savings Program – “Program UpLift”
Chief Executive Judy Marks announced the launch of “program UpLift,” which is forecasted to deliver $150 million in cost savings over the next two years.
For more information, visit wsj.com
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