Q3 2024 Otis Worldwide Corp Earnings Call Transcript
Key Points
- Otis Worldwide Corp (OTIS) achieved high single-digit growth in its service segment, with year-to-date service organic sales up 6.4%.
- The company reported a 4.2% growth in its maintenance portfolio and a 12% increase in its modernization backlog at constant currency.
- Otis Worldwide Corp (OTIS) generated $381 million in adjusted free cash flow in Q3 and completed $200 million in share repurchases.
- The company expanded its manufacturing capabilities in India and received ISO 5,001 certification for its manufacturing hub in Korea.
- Otis Worldwide Corp (OTIS) was named one of the World's Best Employers by Forbes Magazine for the third consecutive year.
- New equipment orders were down 3% in Q3, with a significant decline in China due to continued economic softness.
- The new equipment backlog at constant currency was down 3% compared to the previous year.
- China's new equipment sales declined by more than 20%, impacting overall sales performance.
- The company faced foreign exchange headwinds, which partially offset operational performance.
- Otis Worldwide Corp (OTIS) revised its 2024 sales outlook to the low end of prior expectations, driven by challenges in China.
Good morning, and welcome to Otis Worldwide Corp Q3 2024 Earnings Conference Call. (Operator Instructions.) Our call is over to Michael Rednor, Senior Vice President of Investor Relations. Please go ahead.
Thank you, Krista, welcome to Otis Q3 2024 Earnings Conference Call. On the call with me today are Judy Marks, Chair, CEO and President, Cristina Mendez, Executive Vice President, and CFO. Please note, except where otherwise noted the company will speak to results from continuing operations, excluding restructuring and significant non-recurring items. A reconciliation of these measures can be found in the appendix of the webcast. We also remind listeners that the presentation contains forward looking statements which are subject to risks and uncertainties.
Otis's SEC filings, including our Form10-K, and quarterly reports on Form10-Q provide details on important factors that could cause actual results to differ materially. Now I'd like to turn the call over to Judy.
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