Delivers organic sales and margin growth.
Achieves high-teens adjusted EPS growth driven by continued Service
momentum. Raises full year organic sales and adjusted EPS
outlook
- 3Q Net sales up 5.4% and organic sales up 5.2% driven by
Service net sales up 10.1% with organic sales up 8.4%; Maintenance
portfolio units increased 4.2%
- 3Q GAAP EPS up 18.2% and adjusted EPS up 18.8% with Service
GAAP operating profit margin expansion of 80 basis points and
adjusted Service operating profit margin expansion of 90 basis
points
- 3Q New Equipment orders down 10%; backlog up 3%, up 2% at
constant currency
- 3Q Mod orders up 13%, backlog up 17%, up 15% at constant
currency
- 3Q GAAP cash flow from operations of $306 million; free cash flow of $272 million
- Updated full-year outlook1 with organic sales up
~5.5%, adjusted EPS of ~$3.52 and
free cash flow of ~$1.5 billion.
FARMINGTON, Conn., Oct. 25,
2023 /PRNewswire/ -- Otis Worldwide Corporation
(NYSE:OTIS) reported third quarter 2023 net sales of $3.5 billion with 5.2% organic growth. GAAP
diluted earnings per share (EPS) of $0.91 was up 18.2% versus the prior year and
adjusted EPS increased 18.8% to $0.95.
"Otis delivered strong results in the third quarter, highlighted
by organic sales growth in both segments, 60 basis points of
adjusted operating profit margin expansion and high-teens adjusted
EPS growth," said Judy Marks, Chair,
CEO & President. "Emphasizing the consistent performance of our
Service-driven business model, this quarter marks the eleventh
consecutive quarter of Service organic sales growth, the fourth of
maintenance portfolio growth above 4% and the fifth of
modernization orders growth above 10%. We head into the last
quarter of 2023 from a position of strength, as our strategy has
been resilient through macro volatility, giving us the confidence
to once again raise our EPS guidance. We continue to demonstrate
our ability to execute, deliver value for our shareholders,
customers, and colleagues and meet the needs of passengers around
the world."
Key Figures
($ millions,
except per share amounts)
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
$
3,523
|
|
$
3,344
|
|
5.4 %
|
|
4.8 %
|
|
$ 10,589
|
|
$ 10,246
|
|
3.3 %
|
|
5.4 %
|
Adjusted net
sales
|
$
3,523
|
|
$
3,326
|
|
5.9 %
|
|
5.3 %
|
|
$ 10,589
|
|
$ 10,140
|
|
4.4 %
|
|
6.4 %
|
Organic sales
growth
|
|
|
|
|
|
|
5.2 %
|
|
|
|
|
|
|
|
6.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
$ 571
|
|
$ 529
|
|
$
42
|
|
|
|
$
1,664
|
|
$
1,542
|
|
$ 122
|
|
|
Operating profit
margin
|
16.2 %
|
|
15.8 %
|
|
40 bps
|
|
|
|
15.7 %
|
|
15.0 %
|
|
70 bps
|
|
|
Net income
|
$ 376
|
|
$ 324
|
|
16.0 %
|
|
|
|
$
1,083
|
|
$ 956
|
|
13.3 %
|
|
|
Earnings per
share
|
$ 0.91
|
|
$ 0.77
|
|
18.2 %
|
|
|
|
$ 2.60
|
|
$ 2.25
|
|
15.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
$ 595
|
|
$ 543
|
|
$
52
|
|
$ 47
|
|
$
1,703
|
|
$
1,621
|
|
$
82
|
|
$
114
|
Operating profit
margin
|
16.9 %
|
|
16.3 %
|
|
60 bps
|
|
|
|
16.1 %
|
|
16.0 %
|
|
10 bps
|
|
|
Net income
|
$ 395
|
|
$ 338
|
|
16.9 %
|
|
|
|
$
1,113
|
|
$
1,027
|
|
8.4 %
|
|
|
Earnings per
share
|
$ 0.95
|
|
$ 0.80
|
|
18.8 %
|
|
|
|
$ 2.68
|
|
$ 2.42
|
|
10.7 %
|
|
|
Third quarter net sales of $3.5
billion increased 5.4% versus the prior year with a 5.2%
increase in organic sales and a 0.6% benefit from foreign
exchange.
Third quarter GAAP operating profit of $571 million increased $42
million and adjusted operating profit of $595 million increased $52
million driven by Service. GAAP operating profit
margin expanded 40 basis points to 16.2% and adjusted operating
profit margin expanded 60 basis points to 16.9%, driven by
favorable Service performance and segment mix, partially offset by
headwinds in corporate costs.
GAAP EPS of $0.91 increased 18.2%
compared to prior year and adjusted EPS of $0.95 increased 18.8% as strong operational
performance, effective tax rate improvement, and a lower share
count contributed to 15 cents of
adjusted EPS growth.
New Equipment
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
|
$
1,435
|
|
$
1,447
|
|
(0.8) %
|
|
0.1 %
|
|
$
4,346
|
|
$
4,403
|
|
(1.3) %
|
|
1.7 %
|
Adjusted net
sales
|
|
$
1,435
|
|
$
1,433
|
|
0.1 %
|
|
1.1 %
|
|
$
4,346
|
|
$
4,317
|
|
0.7 %
|
|
3.7 %
|
Organic
sales
|
|
|
|
|
|
|
|
1.0 %
|
|
|
|
|
|
|
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
|
$
94
|
|
$ 100
|
|
$
(6)
|
|
|
|
$ 277
|
|
$ 292
|
|
$ (15)
|
|
|
Operating profit
margin
|
|
6.6 %
|
|
6.9 %
|
|
(30) bps
|
|
|
|
6.4 %
|
|
6.6 %
|
|
(20) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
|
$ 104
|
|
$ 103
|
|
$
1
|
|
$
10
|
|
$ 292
|
|
$ 309
|
|
$ (17)
|
|
$
6
|
Operating profit
margin
|
|
7.2 %
|
|
7.2 %
|
|
0 bps
|
|
|
|
6.7 %
|
|
7.2 %
|
|
(50) bps
|
|
|
In the third quarter, net sales of $1.4
billion decreased 0.8% with a 1.0% increase in organic sales
that was partially offset by a 0.9% headwind from foreign exchange
driven by strong organic sales growth in all regions outside of
China.
GAAP operating profit decreased $6
million to $94 million and
adjusted operating profit increased $10
million at constant currency. In the quarter, favorable
price, improved productivity, and commodity tailwinds were
partially offset by unfavorable regional and product mix and
SG&A expense. GAAP operating profit margin contracted 30 basis
points to 6.6% and adjusted operating profit margin was flat at
7.2%.
New Equipment orders were down 10% at constant currency with
growth in EMEA and Asia Pacific
more than offset by the Americas and China. New equipment backlog grew low-single
digits in the quarter.
Service
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
|
$
2,088
|
|
$
1,897
|
|
10.1 %
|
|
8.3 %
|
|
$
6,243
|
|
$
5,843
|
|
6.8 %
|
|
8.1 %
|
Adjusted net
sales
|
|
$
2,088
|
|
$
1,893
|
|
10.3 %
|
|
8.5 %
|
|
$
6,243
|
|
$
5,823
|
|
7.2 %
|
|
8.4 %
|
Organic
sales
|
|
|
|
|
|
|
|
8.4 %
|
|
|
|
|
|
|
|
8.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
|
$ 507
|
|
$ 446
|
|
$
61
|
|
|
|
$
1,475
|
|
$
1,328
|
|
$ 147
|
|
|
Operating profit
margin
|
|
24.3 %
|
|
23.5 %
|
|
80 bps
|
|
|
|
23.6 %
|
|
22.7 %
|
|
90 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
|
$ 518
|
|
$ 452
|
|
$
66
|
|
$
53
|
|
$
1,496
|
|
$
1,360
|
|
$ 136
|
|
$ 145
|
Operating profit
margin
|
|
24.8 %
|
|
23.9 %
|
|
90 bps
|
|
|
|
24.0 %
|
|
23.4 %
|
|
60 bps
|
|
|
In the third quarter, net sales of $2.1
billion increased 10.1% with a 8.4% increase in organic
sales and a 1.8% benefit from foreign exchange. Organically
maintenance and repair sales increased 8.6% and modernization sales
increased 7.6%.
GAAP operating profit of $507
million increased $61 million
and adjusted operating profit of $518
million increased $53 million
at constant currency due to higher volume, favorable pricing and
productivity, which were partially offset by annual wage inflation
and higher material costs. GAAP operating profit margin expanded 80
basis points and adjusted operating profit margin expanded 90 basis
points to 24.8%.
Cash flow
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
2023
|
|
2022
|
|
Y/Y
|
Cash flow from
operations
|
|
$
306
|
|
$
239
|
|
$
67
|
|
$ 1,030
|
|
$ 1,096
|
|
$
(66)
|
Free cash
flow
|
|
$
272
|
|
$
215
|
|
$
57
|
|
$
934
|
|
$ 1,015
|
|
$
(81)
|
Free cash flow
conversion
|
|
72 %
|
|
66 %
|
|
|
|
86 %
|
|
106 %
|
|
|
Third quarter cash from operations of $306 million increased $67
million and free cash flow of $272
million increased $57 million
versus prior year driven by net income, partially offset by higher
capital expenditures.
2023 Outlook1
Otis is revising its full year outlook:
- Adjusted net sales of ~$14.1
billion, up ~4%
- Organic sales up ~5.5%
- Organic New Equipment sales up ~3%
- Organic Service sales up ~7.5%
- Adjusted operating profit of ~$2.265
billion, up ~$170 million at
constant currency; up ~$140 million
at actual currency
- Adjusted EPS of ~$3.52, up ~11%;
adjusted effective tax rate of ~26.0%
- Free cash flow of ~$1.5 billion
with conversion of ~105% of GAAP net income
- Share repurchases of $800
million
1Note: When we provide outlook for organic sales,
adjusted operating profit, adjusted effective tax rate and free
cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures generally is not available without unreasonable
effort. See "Use and Definitions of Non-GAAP Financial Measures"
below for additional information.
About Otis
Otis is the world's leading elevator and
escalator manufacturing, installation and service company. We move
2 billion people a day and maintain approximately 2.2 million
customer units worldwide, the industry's largest maintenance
portfolio. Headquartered in Connecticut,
USA, Otis is 69,000 people strong, including 41,000 field
professionals, all committed to meeting the diverse needs of our
customers and passengers in more than 200 countries and territories
worldwide. For more information, visit www.otis.com and follow us
on LinkedIn, Instagram, Facebook and Twitter @OtisElevatorCo.
Use and Definitions of Non-GAAP Financial
Measures
Otis Worldwide Corporation ("Otis") reports its
financial results in accordance with accounting principles
generally accepted in the United
States ("GAAP"). We supplement the reporting of our
financial information determined under GAAP with certain non-GAAP
financial information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP measures
differently, which limits the usefulness of these measures for
comparisons with such other companies. We encourage investors to
review our financial statements and publicly filed reports in their
entirety and not to rely on any single financial measure. A
reconciliation of the non-GAAP measures (referenced in this press
release) to the corresponding amounts prepared in accordance with
GAAP appears in the attached tables. These tables provide
additional information as to the items and amounts that have been
excluded from the adjusted measures.
Adjusted net sales, organic sales, adjusted selling, general and
administrative ("SG&A") expense, adjusted operating profit,
adjusted net interest expense, adjusted net income, adjusted
diluted earnings per share ("EPS"), adjusted effective tax rate,
constant currency and free cash flow are non-GAAP financial
measures.
Adjusted net sales represents net sales (a GAAP measure),
excluding significant items of a non-recurring and/or
nonoperational nature ("other significant items").
Organic sales represents consolidated net sales (a GAAP
measure), excluding the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and other significant items. Management believes organic
sales is a useful measure in providing period-to-period comparisons
of the results of the Company's ongoing operational
performance.
Adjusted SG&A expense represents SG&A expense (a GAAP
measure), excluding restructuring costs and other significant
items.
Adjusted general corporate expenses and other represents general
corporate expenses and other (a GAAP measure), excluding
restructuring costs and other significant items.
Adjusted operating profit represents income from continuing
operations (a GAAP measure), excluding restructuring costs and
other significant items.
Adjusted net interest expense represents net interest expense (a
GAAP measure), adjusted for the impacts of non-recurring
acquisition related financing costs and related net interest
expense pending the completion of a transaction.
The adjusted effective tax rate represents the effective tax
rate (a GAAP measure) adjusted for other significant items and the
tax impact of restructuring costs and other significant items.
Adjusted net income represents net income attributable to Otis
Worldwide Corporation (a GAAP measure), excluding restructuring
costs and other significant items, including related tax effects.
Adjusted EPS represents diluted earnings per share attributable to
common shareholders (a GAAP measure), adjusted for the per share
impact of restructuring and other significant items, including
related tax effects.
Management believes that adjusted net sales, organic sales,
adjusted SG&A, adjusted general corporate expenses and other,
adjusted operating profit, adjusted net interest expense, adjusted
net income, adjusted EPS and the adjusted effective tax rate are
useful measures in providing period-to-period comparisons of the
results of the Company's ongoing operational performance.
Additionally, GAAP financial results include the impact of
changes in foreign currency exchange rates ("AFX"). We use the
non-GAAP measure "at constant currency" or "CFX" to show changes in
our financial results without giving effect to period-to-period
currency fluctuations. Under U.S. GAAP, income statement results
are translated in U.S. dollars at the average exchange rate for the
period presented. Management believes that this non-GAAP measure is
useful in providing period-to-period comparisons of the results of
the Company's ongoing operational performance.
Free cash flow is a non-GAAP financial measure that represents
cash flow from operations (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful
measure of liquidity and an additional basis for assessing Otis'
ability to fund its activities, including the financing of
acquisitions, debt service, repurchases of common stock and
distribution of earnings to shareholders.
When we provide our expectations for adjusted net sales, organic
sales, adjusted operating profit, adjusted net interest expense,
adjusted net income, adjusted effective tax rate, adjusted EPS and
free cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures (expected diluted EPS from continuing operations,
operating profit, the effective tax rate, net sales and expected
cash flow from operations) generally is not available without
unreasonable effort due to potentially high variability, complexity
and low visibility as to the items that would be excluded from the
GAAP measure in the relevant future period, such as unusual gains
and losses, the ultimate outcome of pending litigation,
fluctuations in foreign currency exchange rates, the impact and
timing of potential acquisitions and divestitures, and other
structural changes or their probable significance. The variability
of the excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.
Cautionary Statement
This communication contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. These forward-looking
statements are intended to provide management's current
expectations or plans for Otis' future operating and financial
performance, based on assumptions currently believed to be valid.
Forward-looking statements can be identified by the use of words
such as "believe," "expect," "expectations," "plans," "strategy,"
"prospects," "estimate," "project," "target," "anticipate," "will,"
"should," "see," "guidance," "outlook," "medium-term," "near-term,"
"confident," "goals" and other words of similar meaning in
connection with a discussion of future operating or financial
performance. Forward-looking statements may include, among other
things, statements relating to future sales, earnings, cash flow,
results of operations, uses of cash, dividends, share repurchases,
tax rates, research & development spend, restructuring actions,
including UpLift, credit ratings, net indebtedness and other
measures of financial performance or potential future plans,
strategies or transactions, or statements that relate to climate
change and our intent to achieve certain environmental, social and
governance targets or goals, including operational impacts and
costs associated therewith, and other statements that are not
historical facts. All forward-looking statements involve risks,
uncertainties and other factors that may cause actual results to
differ materially from those expressed or implied in the
forward-looking statements. For those statements, Otis claims the
protection of the safe harbor for forward-looking statements
contained in the U.S. Private Securities Litigation Reform Act of
1995. Such risks, uncertainties and other factors include, without
limitation: (1) the effect of economic conditions in the industries
and markets in which Otis and its businesses operate and any
changes therein, including financial market conditions,
fluctuations in commodity prices and other inflationary pressures,
interest rates and foreign currency exchange rates, levels of end
market demand in construction, pandemic health issues (including
COVID-19 and variants thereof), natural disasters, whether as a
result of climate change or otherwise, and the financial condition
of Otis' customers and suppliers; (2) the effect of changes in
political conditions in the U.S. and other countries in which Otis
and its businesses operate, including the effects of the ongoing
conflict between Russia and
Ukraine, the recent war in
Israel and Gaza, and increased tensions between the U.S.
and China, on general market
conditions, commodity costs, global trade policies and related
sanctions and export controls, and currency exchange rates in the
near term and beyond; (3) challenges in the development,
production, delivery, support, performance and realization of the
anticipated benefits of advanced technologies and new products and
services; (4) future levels of indebtedness, capital spending and
research and development spending; (5) future availability of
credit and factors that may affect such availability or costs,
including credit market conditions and Otis' capital structure; (6)
the timing and scope of future repurchases of Otis' common stock
("Common Stock"), which may be suspended at any time due to various
factors, including market conditions and the level of other
investing activities and uses of cash; (7) fluctuations in prices
and delays and disruption in delivery of materials and services
from suppliers, whether as a result of COVID-19, the ongoing
conflict between Russia and
Ukraine or otherwise; (8) cost
reduction or containment actions, restructuring costs and related
savings and other consequences thereof, including with respect to
UpLift; (9) new business and investment opportunities; (10) the
outcome of legal proceedings, investigations and other
contingencies; (11) pension plan assumptions and future
contributions; (12) the impact of the negotiation of collective
bargaining agreements and labor disputes and labor inflation in the
markets in which Otis and its businesses operate globally; (13) the
effect of changes in tax, environmental, regulatory (including
among other things import/export) and other laws and regulations in
the U.S. and other countries in which Otis and its businesses
operate; (14) the ability of Otis to retain and hire key personnel;
(15) the scope, nature, impact or timing of acquisition and
divestiture activity, the integration of acquired businesses into
existing businesses and realization of synergies and opportunities
for growth and innovation and incurrence of related costs; (16) the
determination by the Internal Revenue Service and other tax
authorities that the distribution or certain related transactions
should be treated as taxable transactions in connection with the
separation (the "Separation") of Otis and Carrier Global
Corporation ("Carrier") from United Technologies Corporation (now
known as Raytheon Technologies Corporation ("RTX"); and (17) our
obligations and disputes that have or may hereafter arise under the
agreements we entered into with RTX and Carrier in connection with
the Separation. The above list of factors is not exhaustive or
necessarily in order of importance. For additional information on
identifying factors that may cause actual results to vary from
those stated in forward-looking statements, see Otis' registration
statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q
and 8-K filed with or furnished to the SEC from time to time. Any
forward-looking statement speaks only as of the date on which it is
made, and Otis assumes no obligation to update or revise such
statement, whether as a result of new information, future events or
otherwise, except as required by applicable law.
|
Otis Worldwide
Corporation
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(amounts in
millions, except per share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net Sales
|
|
$
3,523
|
|
$
3,344
|
|
$
10,589
|
|
$
10,246
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services sold
|
|
2,477
|
|
2,373
|
|
7,464
|
|
7,286
|
|
Research and
development
|
|
36
|
|
37
|
|
107
|
|
112
|
|
Selling, general and
administrative
|
|
452
|
|
417
|
|
1,386
|
|
1,315
|
|
Total Costs and
Expenses
|
|
2,965
|
|
2,827
|
|
8,957
|
|
8,713
|
Other income (expense),
net
|
|
13
|
|
12
|
|
32
|
|
9
|
Operating
profit
|
|
571
|
|
529
|
|
1,664
|
|
1,542
|
|
Non-service pension
cost (benefit)
|
|
—
|
|
1
|
|
1
|
|
2
|
|
Interest expense
(income), net
|
|
39
|
|
35
|
|
109
|
|
107
|
Net income before
income taxes
|
|
532
|
|
493
|
|
1,554
|
|
1,433
|
|
Income tax
expense
|
|
137
|
|
143
|
|
400
|
|
382
|
Net income
|
|
395
|
|
350
|
|
1,154
|
|
1,051
|
|
Less: Noncontrolling
interest in subsidiaries' earnings
|
|
19
|
|
26
|
|
71
|
|
95
|
Net income attributable
to Otis Worldwide Corporation
|
|
$
376
|
|
$
324
|
|
$
1,083
|
|
$
956
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.92
|
|
$
0.77
|
|
$
2.62
|
|
$
2.27
|
|
Diluted
|
|
$
0.91
|
|
$
0.77
|
|
$
2.60
|
|
$
2.25
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
410.8
|
|
418.5
|
|
412.6
|
|
421.3
|
|
Diluted
Shares
|
|
413.7
|
|
421.2
|
|
415.8
|
|
424.3
|
Otis Worldwide
Corporation
Segment Net Sales
and Operating Profit
|
|
|
|
Quarter
Ended
September
30,
|
|
Quarter
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
*
|
Net
Sales
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
1,435
|
|
$
1,435
|
|
$
1,447
|
|
$
1,433
|
Service
|
|
2,088
|
|
2,088
|
|
1,897
|
|
1,893
|
Consolidated Net
Sales
|
|
$
3,523
|
|
$
3,523
|
|
$
3,344
|
|
$
3,326
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
94
|
|
$
104
|
|
$
100
|
|
$
103
|
Service
|
|
507
|
|
518
|
|
446
|
|
452
|
Segment Operating
Profit
|
|
601
|
|
622
|
|
546
|
|
555
|
General corporate
expenses and other
|
|
(30)
|
|
(27)
|
|
(17)
|
|
(12)
|
Consolidated
Operating Profit
|
|
$
571
|
|
$
595
|
|
$
529
|
|
$
543
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
6.6 %
|
|
7.2 %
|
|
6.9 %
|
|
7.2 %
|
Service
|
|
24.3 %
|
|
24.8 %
|
|
23.5 %
|
|
23.9 %
|
Total Operating Profit
Margin
|
|
16.2 %
|
|
16.9 %
|
|
15.8 %
|
|
16.3 %
|
|
|
|
Nine Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
Net
Sales
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
4,346
|
|
$
4,346
|
|
$
4,403
|
|
$
4,317
|
Service
|
|
6,243
|
|
6,243
|
|
5,843
|
|
5,823
|
Consolidated Net
Sales
|
|
$ 10,589
|
|
$ 10,589
|
|
$ 10,246
|
|
$ 10,140
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
277
|
|
$
292
|
|
$
292
|
|
$
309
|
Service
|
|
1,475
|
|
1,496
|
|
1,328
|
|
1,360
|
Segment Operating
Profit
|
|
1,752
|
|
1,788
|
|
1,620
|
|
1,669
|
General corporate
expenses and other
|
|
(88)
|
|
(85)
|
|
(78)
|
|
(48)
|
Consolidated
Operating Profit
|
|
$
1,664
|
|
$
1,703
|
|
$
1,542
|
|
$
1,621
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
6.4 %
|
|
6.7 %
|
|
6.6 %
|
|
7.2 %
|
Service
|
|
23.6 %
|
|
24.0 %
|
|
22.7 %
|
|
23.4 %
|
Total Operating Profit
Margin
|
|
15.7 %
|
|
16.1 %
|
|
15.0 %
|
|
16.0 %
|
Otis Worldwide
Corporation
Reconciliation of
Reported (GAAP) to Adjusted Operating Profit & Operating Profit
Margin
|
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
|
|
|
|
|
|
|
GAAP Net
sales
|
|
$
1,435
|
|
$
1,447
|
|
$
4,346
|
|
$
4,403
|
Russia sales
|
|
—
|
|
(14)
|
|
—
|
|
(86)
|
Adjusted New
Equipment Sales
|
|
$
1,435
|
|
$
1,433
|
|
$
4,346
|
|
$
4,317
|
|
|
|
|
|
|
|
|
|
GAAP Operating
profit
|
|
$
94
|
|
$
100
|
|
277
|
|
292
|
Restructuring
|
|
10
|
|
2
|
|
15
|
|
18
|
Russia
operations
|
|
—
|
|
(1)
|
|
—
|
|
(3)
|
Russia conflict-related
charges
|
|
—
|
|
2
|
|
—
|
|
2
|
Adjusted New
Equipment Operating Profit
|
|
$
104
|
|
$
103
|
|
$
292
|
|
$
309
|
Reported New Equipment
Operating Profit Margin
|
|
6.6 %
|
|
6.9 %
|
|
6.4 %
|
|
6.6 %
|
Adjusted New Equipment
Operating Profit Margin
|
|
7.2 %
|
|
7.2 %
|
|
6.7 %
|
|
7.2 %
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
GAAP Net
sales
|
|
$
2,088
|
|
$
1,897
|
|
$
6,243
|
|
$
5,843
|
Russia sales
|
|
—
|
|
(4)
|
|
—
|
|
(20)
|
Adjusted Service
Sales
|
|
$
2,088
|
|
$
1,893
|
|
$
6,243
|
|
$
5,823
|
|
|
|
|
|
|
|
|
|
GAAP Operating
profit
|
|
$
507
|
|
$
446
|
|
1,475
|
|
1,328
|
Restructuring
|
|
11
|
|
4
|
|
21
|
|
27
|
Russia
operations
|
|
—
|
|
1
|
|
—
|
|
4
|
Russia conflict-related
charges
|
|
—
|
|
1
|
|
—
|
|
1
|
Adjusted Service
Operating Profit
|
|
$
518
|
|
$
452
|
|
$
1,496
|
|
$
1,360
|
Reported Service
Operating Profit Margin
|
|
24.3 %
|
|
23.5 %
|
|
23.6 %
|
|
22.7 %
|
Adjusted Service
Operating Profit Margin
|
|
24.8 %
|
|
23.9 %
|
|
24.0 %
|
|
23.4 %
|
|
|
|
|
|
|
|
|
|
General Corporate
Expenses and Other
|
|
|
|
|
|
|
|
|
GAAP General corporate
expenses and other
|
|
$
(30)
|
|
$
(17)
|
|
$
(88)
|
|
$
(78)
|
Transformation
costs
|
|
4
|
|
—
|
|
4
|
|
—
|
Russia other expense
(income)
|
|
—
|
|
(2)
|
|
—
|
|
4
|
Russia sale and
conflict-related charges
|
|
—
|
|
7
|
|
—
|
|
25
|
Other, net
|
|
(1)
|
|
—
|
|
(1)
|
|
1
|
Adjusted General
corporate expenses and other
|
|
$
(27)
|
|
$
(12)
|
|
$
(85)
|
|
$
(48)
|
|
|
|
|
|
|
|
|
|
Total
Otis
|
|
|
|
|
|
|
|
|
GAAP Operating
profit
|
|
$
571
|
|
$
529
|
|
$
1,664
|
|
$
1,542
|
Restructuring
|
|
21
|
|
6
|
|
36
|
|
45
|
Transformation
costs
|
|
4
|
|
—
|
|
4
|
|
—
|
Russia
operations
|
|
—
|
|
(2)
|
|
—
|
|
5
|
Russia sale and
conflict-related charges
|
|
—
|
|
10
|
|
—
|
|
28
|
Other, net
|
|
(1)
|
|
—
|
|
(1)
|
|
1
|
Adjusted Total
Operating Profit
|
|
$
595
|
|
$
543
|
|
$
1,703
|
|
$
1,621
|
Reported Total
Operating Profit Margin
|
|
16.2 %
|
|
15.8 %
|
|
15.7 %
|
|
15.0 %
|
Adjusted Total
Operating Profit Margin
|
|
16.9 %
|
|
16.3 %
|
|
16.1 %
|
|
16.0 %
|
Otis Worldwide
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per
Share, and Effective Tax Rate
|
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions, except per share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted Operating
Profit
|
|
$
595
|
|
$
543
|
|
$
1,703
|
|
$
1,621
|
Non-service pension
cost (benefit)
|
|
—
|
|
1
|
|
1
|
|
2
|
Net interest expense
1
|
|
39
|
|
35
|
|
109
|
|
103
|
Adjusted income from
operations before income taxes
|
|
556
|
|
507
|
|
1,593
|
|
1,516
|
Income tax
expense
|
|
137
|
|
143
|
|
400
|
|
382
|
Tax impact on
restructuring and non-recurring items
|
|
5
|
|
(1)
|
|
9
|
|
10
|
Non-recurring tax
items
|
|
—
|
|
1
|
|
—
|
|
2
|
Adjusted net income
from operations
|
|
414
|
|
364
|
|
1,184
|
|
1,122
|
Noncontrolling
interest
|
|
19
|
|
26
|
|
71
|
|
95
|
Adjusted net income
attributable to Otis Worldwide Corporation
|
|
$
395
|
|
$
338
|
|
$
1,113
|
|
$
1,027
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to common shareholders
|
|
$
376
|
|
$
324
|
|
$
1,083
|
|
$
956
|
Restructuring
|
|
21
|
|
6
|
|
36
|
|
45
|
Transformation
costs
|
|
4
|
|
—
|
|
4
|
|
—
|
Zardoya Otis Tender
Offer finance costs 1
|
|
—
|
|
—
|
|
—
|
|
5
|
Russia
operations
|
|
—
|
|
(2)
|
|
—
|
|
4
|
Russia sale and
conflict-related charges
|
|
—
|
|
10
|
|
—
|
|
28
|
Other, net
|
|
(1)
|
|
—
|
|
(1)
|
|
1
|
Tax effects of
restructuring, non-recurring items and other adjustments
|
|
(5)
|
|
1
|
|
(9)
|
|
(10)
|
Non-recurring tax
items
|
|
—
|
|
(1)
|
|
—
|
|
(2)
|
Adjusted net income
attributable to common shareholders
|
|
$
395
|
|
$
338
|
|
$
1,113
|
|
$
1,027
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
0.91
|
|
$
0.77
|
|
$
2.60
|
|
$
2.25
|
Impact to
diluted earnings per share
|
|
0.04
|
|
0.03
|
|
0.08
|
|
0.17
|
Adjusted Diluted
Earnings Per Share
|
|
$
0.95
|
|
$
0.80
|
|
$
2.68
|
|
$
2.42
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
25.8 %
|
|
29.0 %
|
|
25.7 %
|
|
26.7 %
|
Impact of
adjustments on effective tax rate
|
|
(0.3) %
|
|
(0.8) %
|
|
— %
|
|
(0.7) %
|
Adjusted Effective
Tax Rate
|
|
25.5 %
|
|
28.2 %
|
|
25.7 %
|
|
26.0 %
|
|
1 Otis
incurred interest costs associated with financing the Zardoya Otis
Tender Offer. Net interest expense for the nine months ended
September 30, 2022 is reflected as adjusted without those
costs.
|
Otis Worldwide
Corporation
Components of
Changes in Net Sales
|
|
Quarter Ended
September 30, 2023 Compared with Quarter Ended September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Factors Contributing
to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions
/
Divestitures,
net and Other
|
|
Total
|
New
Equipment
|
|
1.0 %
|
|
(0.9) %
|
|
(0.9) %
|
|
(0.8) %
|
Service
|
|
8.4 %
|
|
1.8 %
|
|
(0.1) %
|
|
10.1 %
|
Maintenance and
Repair
|
|
8.6 %
|
|
2.0 %
|
|
(0.2) %
|
|
10.4 %
|
Modernization
|
|
7.6 %
|
|
0.9 %
|
|
0.3 %
|
|
8.8 %
|
Total Net
Sales
|
|
5.2 %
|
|
0.6 %
|
|
(0.4) %
|
|
5.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2023 Compared with Nine Months Ended September 30,
2022
|
|
|
|
|
|
|
|
|
Factors Contributing
to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions
/
Divestitures,
net and Other
|
|
Total
|
New
Equipment
|
|
3.6 %
|
|
(3.0) %
|
|
(1.9) %
|
|
(1.3) %
|
Service
|
|
8.0 %
|
|
(1.3) %
|
|
0.1 %
|
|
6.8 %
|
Maintenance and
Repair
|
|
8.2 %
|
|
(1.2) %
|
|
— %
|
|
7.0 %
|
Modernization
|
|
7.3 %
|
|
(1.7) %
|
|
0.7 %
|
|
6.3 %
|
Total Net
Sales
|
|
6.1 %
|
|
(2.1) %
|
|
(0.7) %
|
|
3.3 %
|
Components of
Changes in New Equipment Backlog
|
|
|
|
September 30,
2023
|
|
|
Y/Y Growth
%
|
New Equipment Backlog
increase at actual currency
|
|
3 %
|
Foreign exchange impact
to New Equipment Backlog
|
|
(1) %
|
New Equipment Backlog
increase at constant currency
|
|
2 %
|
Components of
Changes in Modernization Backlog
|
|
|
|
September 30,
2023
|
|
|
Y/Y Growth
%
|
Modernization Backlog
increase at actual currency
|
|
17 %
|
Foreign exchange impact
to Modernization Backlog
|
|
(2) %
|
Modernization Backlog
increase at constant currency
|
|
15 %
|
Otis Worldwide
Corporation
Reconciliation of
Adjusted Operating Profit at Constant Currency
|
|
Quarter Ended
September 30, 2023 Compared with Quarter Ended September 30,
2022
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
|
|
|
|
|
|
New
Equipment
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
104
|
|
$
103
|
|
$
1
|
Impact of foreign
exchange
|
|
9
|
|
|
|
9
|
Adjusted Operating
Profit at constant currency
|
|
$
113
|
|
$
103
|
|
$
10
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
518
|
|
$
452
|
|
$
66
|
Impact of foreign
exchange
|
|
(13)
|
|
|
|
(13)
|
Adjusted Operating
Profit at constant currency
|
|
$
505
|
|
$
452
|
|
$
53
|
|
|
|
|
|
|
|
Otis
Consolidated
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
595
|
|
$
543
|
|
$
52
|
Impact of foreign
exchange
|
|
(5)
|
|
|
|
(5)
|
Adjusted Operating
Profit at constant currency
|
|
$
590
|
|
$
543
|
|
$
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2023 Compared with Nine Months Ended September 30,
2022
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
Y/Y
|
|
|
|
|
|
|
|
New
Equipment
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
292
|
|
$
309
|
|
$
(17)
|
Impact of foreign
exchange
|
|
23
|
|
|
|
23
|
Adjusted Operating
Profit at constant currency
|
|
$
315
|
|
$
309
|
|
$
6
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
1,496
|
|
$
1,360
|
|
$
136
|
Impact of foreign
exchange
|
|
9
|
|
|
|
9
|
Adjusted Operating
Profit at constant currency
|
|
$
1,505
|
|
$
1,360
|
|
$
145
|
|
|
|
|
|
|
|
Otis
Consolidated
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
1,703
|
|
$
1,621
|
|
$
82
|
Impact of foreign
exchange
|
|
32
|
|
|
|
32
|
Adjusted Operating
Profit at constant currency
|
|
$
1,735
|
|
$
1,621
|
|
$
114
|
Otis Worldwide
Corporation
Condensed
Consolidated Balance Sheet
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
(amounts in
millions)
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,636
|
|
$
1,189
|
Accounts receivable,
net
|
|
3,455
|
|
3,357
|
Contract
assets
|
|
733
|
|
664
|
Inventories
|
|
624
|
|
617
|
Other current
assets
|
|
301
|
|
316
|
Total Current
Assets
|
|
6,749
|
|
6,143
|
Future income tax
benefits
|
|
290
|
|
285
|
Fixed assets,
net
|
|
708
|
|
719
|
Operating lease
right-of-use assets
|
|
417
|
|
449
|
Intangible assets,
net
|
|
336
|
|
369
|
Goodwill
|
|
1,547
|
|
1,567
|
Other assets
|
|
343
|
|
287
|
Total
Assets
|
|
$
10,390
|
|
$
9,819
|
|
|
|
|
|
Liabilities and
Equity (Deficit)
|
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
|
$
585
|
|
$
670
|
Accounts
payable
|
|
1,655
|
|
1,717
|
Accrued
liabilities
|
|
1,725
|
|
1,794
|
Contract
liabilities
|
|
2,784
|
|
2,662
|
Total Current
Liabilities
|
|
6,749
|
|
6,843
|
Long-term
debt
|
|
6,822
|
|
6,098
|
Future pension and
postretirement benefit obligations
|
|
390
|
|
392
|
Operating lease
liabilities
|
|
293
|
|
315
|
Future income tax
obligations
|
|
258
|
|
279
|
Other long-term
liabilities
|
|
488
|
|
556
|
Total
Liabilities
|
|
15,000
|
|
14,483
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
123
|
|
135
|
Shareholders' Equity
(Deficit):
|
|
|
|
|
Common Stock and
additional paid-in capital
|
|
198
|
|
162
|
Treasury
Stock
|
|
(2,155)
|
|
(1,575)
|
Accumulated
deficit
|
|
(2,183)
|
|
(2,865)
|
Accumulated other
comprehensive income (loss)
|
|
(648)
|
|
(592)
|
Total Shareholders'
Equity (Deficit)
|
|
(4,788)
|
|
(4,870)
|
Noncontrolling
interest
|
|
55
|
|
71
|
Total Equity
(Deficit)
|
|
(4,733)
|
|
(4,799)
|
Total Liabilities
and Equity (Deficit)
|
|
$
10,390
|
|
$
9,819
|
Otis Worldwide
Corporation
Condensed
Consolidated Statement of Cash Flows
|
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income from
operations
|
|
$
395
|
|
$
350
|
|
$ 1,154
|
|
$ 1,051
|
Adjustments to
reconcile net income to net cash flows provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
46
|
|
48
|
|
145
|
|
145
|
Deferred income tax
expense (benefit)
|
|
(18)
|
|
—
|
|
(34)
|
|
6
|
Stock compensation
cost
|
|
15
|
|
13
|
|
49
|
|
41
|
Change in:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(10)
|
|
(67)
|
|
(214)
|
|
(171)
|
Contract assets and
liabilities, current
|
|
(86)
|
|
9
|
|
68
|
|
143
|
Inventories
|
|
13
|
|
(41)
|
|
(8)
|
|
(80)
|
Other current
assets
|
|
34
|
|
(14)
|
|
(4)
|
|
(14)
|
Accounts
payable
|
|
(78)
|
|
2
|
|
(35)
|
|
137
|
Accrued
liabilities
|
|
19
|
|
(26)
|
|
(66)
|
|
(166)
|
Pension
contributions
|
|
(8)
|
|
(7)
|
|
(32)
|
|
(28)
|
Other operating
activities, net
|
|
(16)
|
|
(28)
|
|
7
|
|
32
|
Net cash flows
provided by (used in) operating activities
|
|
306
|
|
239
|
|
1,030
|
|
1,096
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(34)
|
|
(24)
|
|
(96)
|
|
(81)
|
Acquisitions of
businesses and intangible assets, net of cash
|
|
(7)
|
|
(10)
|
|
(27)
|
|
(38)
|
Dispositions of
businesses, net of cash
|
|
—
|
|
61
|
|
—
|
|
61
|
Proceeds from sale of
(investments in) marketable securities, net
|
|
(2)
|
|
—
|
|
(2)
|
|
(7)
|
Other investing
activities, net
|
|
2
|
|
45
|
|
(7)
|
|
127
|
Net cash flows
provided by (used in) investing activities
|
|
(41)
|
|
72
|
|
(132)
|
|
62
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
(147)
|
|
23
|
|
(90)
|
|
80
|
Issuance of long-term
debt, net
|
|
747
|
|
—
|
|
747
|
|
—
|
Payment of debt
issuance costs
|
|
(6)
|
|
—
|
|
(6)
|
|
—
|
Repayment of long-term
debt
|
|
—
|
|
—
|
|
—
|
|
(500)
|
Dividends paid on
Common Stock
|
|
(139)
|
|
(121)
|
|
(400)
|
|
(345)
|
Repurchases of Common
Stock
|
|
(225)
|
|
(300)
|
|
(575)
|
|
(700)
|
Dividends paid to
noncontrolling interest
|
|
(61)
|
|
(66)
|
|
(76)
|
|
(107)
|
Acquisition of Zardoya
Otis shares
|
|
—
|
|
—
|
|
—
|
|
(1,802)
|
Other financing
activities, net
|
|
(2)
|
|
(1)
|
|
(18)
|
|
(28)
|
Net cash flows
provided by (used in) financing activities
|
|
167
|
|
(465)
|
|
(418)
|
|
(3,402)
|
Summary of
Activity:
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
306
|
|
239
|
|
1,030
|
|
1,096
|
Net cash provided by
(used in) investing activities
|
|
(41)
|
|
72
|
|
(132)
|
|
62
|
Net cash provided by
(used in) financing activities
|
|
167
|
|
(465)
|
|
(418)
|
|
(3,402)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
(18)
|
|
(69)
|
|
(34)
|
|
(191)
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
414
|
|
(223)
|
|
446
|
|
(2,435)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
1,227
|
|
1,265
|
|
1,195
|
|
3,477
|
Cash, cash equivalents
and restricted cash, end of period
|
|
1,641
|
|
1,042
|
|
1,641
|
|
1,042
|
Less: Restricted
cash
|
|
5
|
|
8
|
|
5
|
|
8
|
Cash and cash
equivalents, end of period
|
|
$ 1,636
|
|
$ 1,034
|
|
$ 1,636
|
|
$ 1,034
|
Otis Worldwide
Corporation
Free Cash Flow
Reconciliation
|
|
|
|
Quarter Ended
September 30,
|
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
|
$
376
|
|
|
$
324
|
|
Net cash flows provided
by operating activities
|
|
$
306
|
|
|
$
239
|
|
Net cash flows
provided by operating activities as a percentage of net
income attributable to common shareholders
|
|
|
81 %
|
|
|
74 %
|
Capital
expenditures
|
|
(34)
|
|
|
(24)
|
|
Capital expenditures
as a percentage of net income attributable to
common shareholders
|
|
|
(9) %
|
|
|
(7) %
|
Free cash
flow
|
|
$
272
|
|
|
$
215
|
|
Free cash flow as a
percentage of net income attributable
to common
shareholders
|
|
|
72 %
|
|
|
66 %
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
|
$
1,083
|
|
|
$
956
|
|
Net cash flows provided
by operating activities
|
|
$
1,030
|
|
|
$
1,096
|
|
Net cash flows
provided by operating activities as a percentage of net
income attributable to common shareholders
|
|
|
95 %
|
|
|
115 %
|
Capital
expenditures
|
|
(96)
|
|
|
(81)
|
|
Capital expenditures
as a percentage of net income attributable to
common shareholders
|
|
|
(9) %
|
|
|
(8) %
|
Free cash
flow
|
|
$
934
|
|
|
$
1,015
|
|
Free cash flow as a
percentage of net income attributable to common
shareholders
|
|
|
86 %
|
|
|
106 %
|
Media Contact:
|
Investor Relations
Contact:
|
Katy Padgett
|
Michael
Rednor
|
+1-860-674-3047
|
+1-860-676-6011
|
kathleen.padgett@otis.com
|
investorrelations@otis.com
|
View original
content:https://www.prnewswire.com/news-releases/otis-reports-third-quarter-2023-results-301967115.html
SOURCE Otis Worldwide Corporation