Thu, Jul 25, 8:14 PM (44 days ago)
Otis Worldwide Corporation reported a mixed financial performance for Q2 2024. Net sales decreased by 3.2% YoY to $3,601 million, primarily driven by a 9.4% decline in New Equipment sales, partially offset by a 5.1% increase in Service sales. The gross margin improved by 90 basis points to 30.0%, benefiting from productivity gains and lower commodity prices. Operating profit declined by $10 million to $570 million, impacted by $21 million in UpLift transformation costs and $18 million in litigation-related settlement costs. The effective tax rate decreased to 17.3% due to favorable tax adjustments. Net income attributable to Otis increased by 10.4% to $415 million, aided by a lower tax rate and interest expense. Cash and cash equivalents stood at $942 million, with net debt at $6,240 million. The company repurchased $600 million in shares during the quarter. Future performance may be influenced by ongoing macroeconomic uncertainties and restructuring initiatives under the UpLift program.