FARMINGTON, Conn., Oct. 25, 2021 /PRNewswire/ -- Otis Worldwide
Corporation (NYSE:OTIS) reported third quarter 2021 net sales of
$3.6 billion with 8.1% organic
growth. GAAP operating profit of $542
million was up $88 million and
margin expanded 110 basis points to 15.0%. Adjusted operating
profit of $566 million was up
$63 million and margin expanded 20
basis points to 15.6%. GAAP and adjusted diluted earnings per share
(EPS) of $0.77 increased 26.2% and
11.6%, respectively.
"Otis delivered another strong quarter with sales growth and
margin expansion in both segments, a 3% increase in maintenance
portfolio units and the third consecutive quarter of New Equipment
orders growth. We also generated robust cash flow enabling us to
buy back $725 million of shares
year-to-date and announced a tender offer to acquire the remaining
interest in Zardoya Otis, a decision that will streamline
management and create value for shareholders," said President &
CEO Judy Marks. "We continue to
advance our strategy, progress on ESG initiatives and achieve
strong results, despite the macro environment, reflecting the
resiliency of the business and our ability to execute. This gives
us the confidence to improve the 2021 outlook and positions us well
to build on this momentum in 2022."
Key Figures
($ millions,
except per
share amounts)
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
$
|
3,620
|
|
|
$
|
3,268
|
|
|
10.8
|
%
|
|
8.3
|
%
|
|
$
|
10,729
|
|
|
$
|
9,263
|
|
|
15.8
|
%
|
|
11.4
|
%
|
Organic
sales
|
|
|
|
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
$
|
542
|
|
|
$
|
454
|
|
|
$
|
88
|
|
|
|
|
$
|
1,612
|
|
|
$
|
1,199
|
|
|
$
|
413
|
|
|
|
Operating profit
margin
|
|
15.0
|
%
|
|
|
13.9
|
%
|
|
110 bps
|
|
|
|
|
|
15.0
|
%
|
|
|
12.9
|
%
|
|
210 bps
|
|
|
|
Net income
|
$
|
331
|
|
|
$
|
266
|
|
|
24.4
|
%
|
|
|
|
$
|
965
|
|
|
$
|
655
|
|
|
47.3
|
%
|
|
|
Earnings per
share
|
$
|
0.77
|
|
|
$
|
0.61
|
|
|
26.2
|
%
|
|
|
|
$
|
2.23
|
|
|
$
|
1.51
|
|
|
47.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
$
|
566
|
|
|
$
|
503
|
|
|
$
|
63
|
|
|
$
|
52
|
|
|
$
|
1,671
|
|
|
$
|
1,410
|
|
|
$
|
261
|
|
|
$
|
189
|
|
Operating profit
margin
|
|
15.6
|
%
|
|
|
15.4
|
%
|
|
20 bps
|
|
|
|
|
|
15.6
|
%
|
|
|
15.2
|
%
|
|
40 bps
|
|
|
|
Net income
|
$
|
333
|
|
|
$
|
302
|
|
|
10.3
|
%
|
|
|
|
$
|
987
|
|
|
$
|
808
|
|
|
22.2
|
%
|
|
|
Earnings per
share
|
$
|
0.77
|
|
|
$
|
0.69
|
|
|
11.6
|
%
|
|
|
|
$
|
2.28
|
|
|
$
|
1.86
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter net sales of $3.6
billion increased 10.8% versus the prior year, with an 8.1%
increase in organic sales. Organic sales were up in both New
Equipment and Service.
Third quarter GAAP operating profit of $542 million increased $88
million driven by segment operating profit growth of
$71 million and lower non-recurring
separation costs. GAAP operating profit margin expanded 110 basis
points to 15.0%.
Adjusted operating profit of $566
million increased $63 million
and $52 million at constant currency
with segment operating profit growth of $49
million. Adjusted operating profit margin expanded 20 basis
points to 15.6%, with margin expansion in both New Equipment and
Service.
GAAP and adjusted EPS of $0.77
increased $0.16 and $0.08, respectively, driven by operating profit
growth, partially offset by a higher effective tax rate.
Year-to-date net sales increased 15.8% driven by a 11.2%
increase in organic sales and 4.4% benefit from foreign exchange.
GAAP and adjusted operating profit increased $413 million and $261
million, respectively, driven by segment operating profit
growth. GAAP operating profit also benefited from the absence of a
fixed asset impairment charge taken in the prior year and lower
non-recurring separation costs. GAAP and adjusted operating profit
margin expanded 210 and 40 basis points, respectively. GAAP and
adjusted EPS increased 47.7% and 22.6%, respectively, driven by
operating profit growth and a reduction in the effective tax
rate.
New Equipment
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
$
|
1,681
|
|
|
$
|
1,423
|
|
|
18.1
|
%
|
|
14.2
|
%
|
|
$
|
4,866
|
|
|
$
|
3,840
|
|
|
26.7
|
%
|
|
21.3
|
%
|
Organic
sales
|
|
|
|
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
$
|
131
|
|
|
$
|
95
|
|
|
$
|
36
|
|
|
|
|
$
|
382
|
|
|
$
|
238
|
|
|
$
|
144
|
|
|
|
Operating profit
margin
|
7.8
|
%
|
|
6.7
|
%
|
|
110 bps
|
|
|
|
7.9
|
%
|
|
6.2
|
%
|
|
170 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
$
|
135
|
|
|
$
|
102
|
|
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
399
|
|
|
$
|
258
|
|
|
$
|
141
|
|
|
$
|
116
|
|
Operating profit
margin
|
8.0
|
%
|
|
7.2
|
%
|
|
80 bps
|
|
|
|
8.2
|
%
|
|
6.7
|
%
|
|
150 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the third quarter, net sales of $1.7
billion increased 18.1% with a 14.1% increase in organic
sales. Organic sales were up mid-teens in the Americas, up low
single digits in EMEA and up high-teens in Asia with double digit growth in China.
GAAP operating profit of $131
million increased $36 million
and adjusted operating profit of $135
million increased $33 million
driven by higher volume and installation productivity, partially
offset by headwinds from commodities. GAAP and adjusted operating
profit margin expanded 110 and 80 basis points to 7.8% and 8.0%,
respectively.
New Equipment orders were up 3.8% at constant currency with
mid-teens growth in Asia partially
offset by declines in the Americas and EMEA. New Equipment orders
in China were up approximately
12%. Year-to-date New Equipment orders were up 15.1% at constant
currency with growth in all regions. New equipment backlog
increased 4% with 1% growth at constant currency versus prior
year.
Year-to-date net sales increased 26.7% with a 21.1% increase in
organic sales. GAAP operating profit increased $144 million and adjusted operating profit
increased $116 million at constant
currency primarily due to the benefit of higher volume. GAAP and
adjusted operating profit margin expanded 170 and 150 basis points,
respectively.
Service
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
|
2021
|
|
2020
|
|
Y/Y
|
|
Y/Y
(CFX)
|
Net sales
|
$
|
1,939
|
|
|
$
|
1,845
|
|
|
5.1
|
%
|
|
3.8
|
%
|
|
$
|
5,863
|
|
|
$
|
5,423
|
|
|
8.1
|
%
|
|
4.5
|
%
|
Organic
sales
|
|
|
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
Operating
profit
|
$
|
444
|
|
|
$
|
409
|
|
|
$
|
35
|
|
|
|
|
$
|
1,315
|
|
|
$
|
1,190
|
|
|
$
|
125
|
|
|
|
Operating profit
margin
|
22.9
|
%
|
|
22.2
|
%
|
|
70 bps
|
|
|
|
22.4
|
%
|
|
21.9
|
%
|
|
50 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP
comparison
|
Operating
profit
|
$
|
449
|
|
|
$
|
422
|
|
|
$
|
27
|
|
|
$
|
24
|
|
|
$
|
1,333
|
|
|
$
|
1,216
|
|
|
$
|
117
|
|
|
$
|
70
|
|
Operating profit
margin
|
23.2
|
%
|
|
22.9
|
%
|
|
30 bps
|
|
|
|
22.7
|
%
|
|
22.4
|
%
|
|
30 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the third quarter, net sales of $1.9
billion increased 5.1% with a 3.6% increase in organic
sales. Organic maintenance and repair sales increased 4.7% and
organic modernization sales decreased 1.2%.
GAAP operating profit of $444
million increased $35 million
and adjusted operating profit of $449
million increased $27 million
as the benefits of higher volume and favorable pricing and mix were
partially offset by headwinds from prior year field cost
containment actions related to COVID-19. GAAP and adjusted
operating profit margin expanded 70 and 30 basis points to 22.9%
and 23.2%, respectively.
Year-to-date net sales increased 8.1% with a 4.2% increase in
organic sales. GAAP operating profit increased $125 million and adjusted operating profit
increased $70 million primarily due
to the benefit of higher volume. GAAP and adjusted operating profit
margin expanded 50 and 30 basis points, respectively.
Cash flow
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
($
millions)
|
2021
|
|
2020
|
|
Y/Y
|
|
2021
|
|
2020
|
|
Y/Y
|
Cash flow from
operations
|
$
|
355
|
|
|
$
|
348
|
|
|
$
|
7
|
|
|
$
|
1,473
|
|
|
$
|
1,171
|
|
|
$
|
302
|
|
Free cash
flow
|
$
|
324
|
|
|
$
|
311
|
|
|
$
|
13
|
|
|
$
|
1,358
|
|
|
$
|
1,059
|
|
|
$
|
299
|
|
Free cash flow
conversion
|
98
|
%
|
|
117
|
%
|
|
|
|
141
|
%
|
|
162
|
%
|
|
|
Third quarter cash from operations of $355 million increased $7
million versus prior year driven by higher GAAP net income.
Third quarter free cash flow of $324
million increased $13 million
versus prior year.
Year-to-date cash from operations of $1.5
billion increased $302 million
and free cash flow increased $299
million to $1.4 billion.
2021 Outlook*
Otis is improving its full year
outlook:
- Net sales of ~$14.3 billion, up
11.8 to 12.3%
- Organic sales up 8.5 to 9.0%
-
- Organic New Equipment sales up 15.0 to 15.5%
- Organic Service sales up ~4.0%
- Adjusted operating profit of $2.18 to $2.19
billion, up $260 to
$270 million at actual currency; up
$195 to $205
million at constant currency
- Adjusted EPS of ~$2.95, up ~17%;
adjusted effective tax rate in a range of 28.5 to 29.0%
- Free cash flow of $1.5 to
$1.55 billion with conversion of
approximately 125% of GAAP net income
*Note: 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 2.1 million
customer units worldwide, the industry's largest maintenance
portfolio. Headquartered in Connecticut,
USA, Otis is 69,000 people strong, including 40,000 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.
Organic sales, adjusted selling, general and administrative
("SG&A") expense, earnings before interest taxes and
depreciation ("EBITDA"), adjusted EBITDA, adjusted operating
profit, adjusted net income, adjusted diluted earnings per share
("EPS"), adjusted effective tax rate and free cash flow are
non-GAAP financial measures.
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 of a non-recurring and/or
nonoperational nature ("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, other significant items
and allocated costs for certain functions and services previously
performed by United Technologies Corporation ("UTC") prior to our
separation ("UTC allocated costs") and including solely for fiscal
years prior to 2020 estimated standalone public company costs, as
though Otis' operations had been conducted independently from UTC
("standalone costs"). Standalone costs for fiscal years prior to
2020 are based on quarterly estimates determined during Otis'
annual planning process for the 2020 fiscal year. Recurring
standalone costs for 2021 and 2020 are not adjusted.
Adjusted operating profit represents income from continuing
operations (a GAAP measure), excluding restructuring costs, other
non-recurring significant items, UTC allocated costs and including
solely for fiscal years prior to 2020 estimated standalone public
company costs.
Adjusted net income represents net income from continuing
operations (a GAAP measure), excluding restructuring costs and
other non-recurring significant items and UTC allocated costs and
including solely for fiscal years prior to 2020 estimated
standalone public company costs, estimated adjustments to
non-service pension expense, net interest expense and income tax
expense as if Otis was a standalone public company ("standalone
operating income adjustments"). Adjusted EPS represents diluted
earnings per share from continuing operations (a GAAP measure),
adjusted for the per share impact of restructuring, other
significant items and solely for fiscal years prior to 2020
standalone operating income adjustments.
The adjusted effective tax rate represents the effective tax
rate (a GAAP measure) adjusted for the tax impact of restructuring
costs, non-recurring significant items and solely for fiscal year
prior to 2020 the tax impact of the additional adjustments
(estimated standalone public company costs, interest expense and
non-service pension expense).
EBITDA represents net income from operations (a GAAP measure),
adjusted for noncontrolling interests, income tax expense, net
interest expense, non-service pension expense and depreciation and
amortization. Adjusted EBITDA represents EBITDA, as calculated
above, adjusted for the impact of restructuring, other significant
items and UTC allocated costs, including solely for fiscal years
prior to 2020 estimated standalone public company costs. Management
believes that adjusted SG&A, EBITDA, adjusted EBITDA, adjusted
operating profit, 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 and to the extent applicable as if
it had been a standalone public company for fiscal years prior to
2020.
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 organic sales, adjusted
operating profit, 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," "confident," "goals" and
other words of similar meaning in connection with a discussion of
future operating or financial performance or the proposed tender
offer by Otis to acquire all of the issued and outstanding shares
of Zardoya Otis, S.A (the "Tender Offer") or the separation and
distribution. 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 and development spend, credit ratings, net
indebtedness and other measures of financial performance or
potential future plans, strategies or transactions of Otis
following its separation from United Technologies Corporation or in
connection with the Tender Offer, including the estimated costs
associated with the Tender Offer and the separation and
distribution 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 in the U.S. and globally and any changes
therein, including financial market conditions, fluctuations in
commodity prices, interest rates and foreign currency exchange
rates, levels of end market demand in construction, the impact of
weather conditions, pandemic health issues (including COVID-19 and
its effects, among other things, on global supply, demand, and
distribution disruptions as the outbreak continues and results in
an increasingly prolonged period of travel, commercial and/or other
similar restrictions and limitations), natural disasters and the
financial condition of Otis' customers and suppliers; (2)
challenges in the development, production, delivery, support,
performance and realization of the anticipated benefits of advanced
technologies and new products and services; (3) future levels of
indebtedness, including as a result of the Tender Offer, and
capital spending and research and development spending; (4) future
availability of credit, including in connection with the financing
of the Tender Offer, and factors that may affect such availability,
including credit market conditions in the U.S. and other countries
in which Otis and its businesses operate and Otis' capital
structure; (5) the timing and scope of future repurchases of Otis'
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; (6) fluctuations in prices
of and delays and disruption in delivery of materials and services
from suppliers; (7) cost reduction efforts and restructuring costs
and savings and other consequences thereof; (8) new business and
investment opportunities; (9) the anticipated benefits of moving
away from diversification and balance of operations across product
lines, regions and industries; (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;
(13) the effect of changes in political conditions in the U.S.,
including the new U.S. Administration, and other countries in which
Otis and its businesses operate, including China's response to the new U.S.
administration and the United
Kingdom's recent withdrawal from the European Union, on
general market conditions, global trade policies and currency
exchange rates in the near term and beyond; (14) 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,
including changes as a result of the new U.S. Administration; (15)
the ability of Otis to retain and hire key personnel; (16) the
scope, nature, impact or timing of acquisition and divestiture
activity, including among other things integration of acquired
businesses into existing businesses and realization of synergies
and opportunities for growth and innovation and incurrence of
related costs; (17) the timing of closing, if any, of the Tender
Offer and the expected benefits of the Tender Offer and separation
and distribution and timing thereof; (18) the determination by the
Internal Revenue Service and other tax authorities that the
distribution or certain related transactions should be treated as
taxable transactions; (19) risks associated with indebtedness
incurred as a result of financing transactions undertaken in
connection with the separation; (20) the risk that dis-synergy
costs, costs of restructuring transactions and other costs incurred
in connection with the separation will exceed Otis' estimates; and
(21) the impact of the separation on Otis' businesses and Otis'
resources, systems, procedures and controls, diversion of
management's attention and the impact on relationships with
customers, suppliers, employees and other business counterparties.
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 statements on
Form 10 and Form S-3 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)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
Sales
|
|
$
|
3,620
|
|
|
$
|
3,268
|
|
|
$
|
10,729
|
|
|
$
|
9,263
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services sold
|
|
2,560
|
|
|
2,289
|
|
|
7,575
|
|
|
6,496
|
|
|
Research and
development
|
|
39
|
|
|
37
|
|
|
113
|
|
|
112
|
|
|
Selling, general and
administrative
|
|
479
|
|
|
481
|
|
|
1,445
|
|
|
1,387
|
|
|
Total Costs and
Expenses
|
|
3,078
|
|
|
2,807
|
|
|
9,133
|
|
|
7,995
|
|
Other income
(expense), net
|
|
—
|
|
|
(7)
|
|
|
16
|
|
|
(69)
|
|
Operating
profit
|
|
542
|
|
|
454
|
|
|
1,612
|
|
|
1,199
|
|
|
Non-service pension
cost (benefit)
|
|
2
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
Interest expense
(income), net
|
|
33
|
|
|
39
|
|
|
92
|
|
|
85
|
|
Net income before
income taxes
|
|
507
|
|
|
413
|
|
|
1,514
|
|
|
1,114
|
|
|
Income tax
expense
|
|
128
|
|
|
103
|
|
|
404
|
|
|
337
|
|
Net income
|
|
379
|
|
|
310
|
|
|
1,110
|
|
|
777
|
|
|
Less: Noncontrolling
interest in subsidiaries' earnings
|
|
48
|
|
|
44
|
|
|
145
|
|
|
122
|
|
Net income
attributable to common shareholders
|
|
$
|
331
|
|
|
$
|
266
|
|
|
$
|
965
|
|
|
$
|
655
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.78
|
|
|
$
|
0.61
|
|
|
$
|
2.25
|
|
|
$
|
1.51
|
|
|
Diluted
|
|
$
|
0.77
|
|
|
$
|
0.61
|
|
|
$
|
2.23
|
|
|
$
|
1.51
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
shares
|
|
425.8
|
|
|
433.2
|
|
|
428.5
|
|
|
433.1
|
|
|
Diluted
Shares
|
|
430.6
|
|
|
435.1
|
|
|
432.0
|
|
|
434.1
|
|
Otis Worldwide
Corporation
Segment Net Sales
and Operating Profit
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
September
30,
|
|
Quarter
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
Net
Sales
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
|
1,681
|
|
|
$
|
1,681
|
|
|
$
|
1,423
|
|
|
$
|
1,423
|
|
Service
|
|
1,939
|
|
|
1,939
|
|
|
1,845
|
|
|
1,845
|
|
Consolidated Net
Sales
|
|
$
|
3,620
|
|
|
$
|
3,620
|
|
|
$
|
3,268
|
|
|
$
|
3,268
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
|
131
|
|
|
$
|
135
|
|
|
$
|
95
|
|
|
$
|
102
|
|
Service
|
|
444
|
|
|
449
|
|
|
409
|
|
|
422
|
|
Segment Operating
Profit
|
|
575
|
|
|
584
|
|
|
504
|
|
|
524
|
|
General corporate
expenses and other
|
|
(33)
|
|
|
(18)
|
|
|
(50)
|
|
|
(21)
|
|
Consolidated
Operating Profit
|
|
$
|
542
|
|
|
$
|
566
|
|
|
$
|
454
|
|
|
$
|
503
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
7.8
|
%
|
|
8.0
|
%
|
|
6.7
|
%
|
|
7.2
|
%
|
Service
|
|
22.9
|
%
|
|
23.2
|
%
|
|
22.2
|
%
|
|
22.9
|
%
|
Total Operating
Profit Margin
|
|
15.0
|
%
|
|
15.6
|
%
|
|
13.9
|
%
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
Net
Sales
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
|
4,866
|
|
|
$
|
4,866
|
|
|
$
|
3,840
|
|
|
$
|
3,840
|
|
Service
|
|
5,863
|
|
|
5,863
|
|
|
5,423
|
|
|
5,423
|
|
Consolidated Net
Sales
|
|
$
|
10,729
|
|
|
$
|
10,729
|
|
|
$
|
9,263
|
|
|
$
|
9,263
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
$
|
382
|
|
|
$
|
399
|
|
|
$
|
238
|
|
|
$
|
258
|
|
Service
|
|
1,315
|
|
|
1,333
|
|
|
1,190
|
|
|
1,216
|
|
Segment Operating
Profit
|
|
1,697
|
|
|
1,732
|
|
|
1,428
|
|
|
1,474
|
|
General corporate
expenses and other
|
|
(85)
|
|
|
(61)
|
|
|
(229)
|
|
|
(64)
|
|
Consolidated
Operating Profit
|
|
$
|
1,612
|
|
|
$
|
1,671
|
|
|
$
|
1,199
|
|
|
$
|
1,410
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
7.9
|
%
|
|
8.2
|
%
|
|
6.2
|
%
|
|
6.7
|
%
|
Service
|
|
22.4
|
%
|
|
22.7
|
%
|
|
21.9
|
%
|
|
22.4
|
%
|
Total Operating
Profit Margin
|
|
15.0
|
%
|
|
15.6
|
%
|
|
12.9
|
%
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
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)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
New
Equipment
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,681
|
|
|
$
|
1,423
|
|
|
$
|
4,866
|
|
|
$
|
3,840
|
|
GAAP Operating
profit
|
|
131
|
|
|
95
|
|
|
382
|
|
|
238
|
|
Restructuring
|
|
4
|
|
|
7
|
|
|
17
|
|
|
20
|
|
Adjusted New
Equipment Operating Profit
|
|
$
|
135
|
|
|
$
|
102
|
|
|
$
|
399
|
|
|
$
|
258
|
|
Adjusted operating
profit margin
|
|
8.0
|
%
|
|
7.2
|
%
|
|
8.2
|
%
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,939
|
|
|
$
|
1,845
|
|
|
$
|
5,863
|
|
|
$
|
5,423
|
|
GAAP Operating
profit
|
|
444
|
|
|
409
|
|
|
1,315
|
|
|
1,190
|
|
Restructuring
|
|
5
|
|
|
13
|
|
|
18
|
|
|
26
|
|
Adjusted Service
Operating Profit
|
|
$
|
449
|
|
|
$
|
422
|
|
|
$
|
1,333
|
|
|
$
|
1,216
|
|
Adjusted Operating
Profit Margin
|
|
23.2
|
%
|
|
22.9
|
%
|
|
22.7
|
%
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
General corporate
expenses and other
|
|
$
|
(18)
|
|
|
$
|
(21)
|
|
|
$
|
(61)
|
|
|
$
|
(64)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Total
Operating Profit
|
|
$
|
566
|
|
|
$
|
503
|
|
|
$
|
1,671
|
|
|
$
|
1,410
|
|
|
|
|
|
|
|
|
|
|
Total
Otis
|
|
|
|
|
|
|
|
|
GAAP Operating
profit
|
|
$
|
542
|
|
|
$
|
454
|
|
|
$
|
1,612
|
|
|
$
|
1,199
|
|
Restructuring
|
|
9
|
|
|
20
|
|
|
35
|
|
|
46
|
|
One-time
separation costs, net
|
|
15
|
|
|
29
|
|
|
24
|
|
|
82
|
|
Fixed
asset impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
UTC
allocated corporate expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
Adjusted Total
Operating Profit
|
|
$
|
566
|
|
|
$
|
503
|
|
|
$
|
1,671
|
|
|
$
|
1,410
|
|
Adjusted Operating
Profit Margin
|
|
15.6
|
%
|
|
15.4
|
%
|
|
15.6
|
%
|
|
15.2
|
%
|
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)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted Operating
Profit
|
|
$
|
566
|
|
|
$
|
503
|
|
|
$
|
1,671
|
|
|
$
|
1,410
|
|
Non-service pension
cost (benefit)
|
|
2
|
|
|
2
|
|
|
6
|
|
|
—
|
|
Net interest
expense
|
|
33
|
|
|
39
|
|
|
92
|
|
|
85
|
|
Adjusted income
from operations before income taxes
|
|
531
|
|
|
462
|
|
|
1,573
|
|
|
1,325
|
|
Income tax
expense
|
|
128
|
|
|
103
|
|
|
404
|
|
|
337
|
|
Tax impact on
restructuring and non-recurring items
|
|
2
|
|
|
8
|
|
|
11
|
|
|
47
|
|
Non-recurring tax
items
|
|
20
|
|
|
5
|
|
|
26
|
|
|
11
|
|
Adjusted net
income from operations
|
|
381
|
|
|
346
|
|
|
1,132
|
|
|
930
|
|
Noncontrolling
interest
|
|
48
|
|
|
44
|
|
|
145
|
|
|
122
|
|
Adjusted net
income attributable to common shareholders
|
|
$
|
333
|
|
|
$
|
302
|
|
|
$
|
987
|
|
|
$
|
808
|
|
|
|
|
|
|
|
|
|
|
GAAP income
attributable to common shareholders
|
|
$
|
331
|
|
|
$
|
266
|
|
|
$
|
965
|
|
|
$
|
655
|
|
Restructuring
|
|
9
|
|
|
20
|
|
|
35
|
|
|
46
|
|
One-time separation
costs, net
|
|
15
|
|
|
29
|
|
|
24
|
|
|
82
|
|
Fixed asset
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
UTC allocated
corporate expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
Tax effects of
restructuring, non-recurring items and other adjustments
|
|
(2)
|
|
|
(8)
|
|
|
(11)
|
|
|
(47)
|
|
Non-recurring tax
items
|
|
(20)
|
|
|
(5)
|
|
|
(26)
|
|
|
(11)
|
|
Adjusted net
income attributable to common shareholders
|
|
$
|
333
|
|
|
$
|
302
|
|
|
$
|
987
|
|
|
$
|
808
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
$
|
0.77
|
|
|
$
|
0.61
|
|
|
$
|
2.23
|
|
|
$
|
1.51
|
|
Impact to
diluted earnings per share
|
|
—
|
|
|
0.08
|
|
|
0.05
|
|
|
0.35
|
|
Adjusted Diluted
Earnings Per Share
|
|
$
|
0.77
|
|
|
$
|
0.69
|
|
|
$
|
2.28
|
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
25.2
|
%
|
|
24.9
|
%
|
|
26.7
|
%
|
|
30.2
|
%
|
Impact of
adjustments on effective tax rate
|
|
3.0
|
%
|
|
0.3
|
%
|
|
1.3
|
%
|
|
(0.4)
|
%
|
Adjusted Effective
Tax Rate
|
|
28.2
|
%
|
|
25.2
|
%
|
|
28.0
|
%
|
|
29.8
|
%
|
Otis Worldwide
Corporation
Components of
Changes in Net Sales
|
|
|
|
|
|
Quarter Ended
September 30, 2021 Compared with Quarter Ended September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factors
Contributing to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions
/
Divestitures,
net
|
|
Total
|
New
Equipment
|
|
14.1%
|
|
3.9%
|
|
0.1%
|
|
18.1%
|
Service
|
|
3.6%
|
|
1.3%
|
|
0.2%
|
|
5.1%
|
Maintenance and
Repair
|
|
4.7%
|
|
1.2%
|
|
0.3%
|
|
6.2%
|
Modernization
|
|
(1.2)%
|
|
1.2%
|
|
—%
|
|
—%
|
Total Net
Sales
|
|
8.1%
|
|
2.5%
|
|
0.2%
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, 2021 Compared with Nine Months Ended September
30, 2020
|
|
|
|
|
|
|
|
|
|
Factors
Contributing to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions
/
Divestitures,
net
|
|
Total
|
New
Equipment
|
|
21.1%
|
|
5.4%
|
|
0.2%
|
|
26.7%
|
Service
|
|
4.2%
|
|
3.6%
|
|
0.3%
|
|
8.1%
|
Maintenance and
Repair
|
|
4.5%
|
|
3.8%
|
|
0.3%
|
|
8.6%
|
Modernization
|
|
2.7%
|
|
3.3%
|
|
0.1%
|
|
6.1%
|
Total Net
Sales
|
|
11.2%
|
|
4.4%
|
|
0.2%
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
Components of New
Equipment Backlog
|
|
|
|
|
Growth
%
|
|
|
Q3
2021
|
New Equipment Backlog
increase at actual currency
|
|
4%
|
Foreign exchange
impact to New Equipment Backlog
|
|
(3)%
|
New Equipment Backlog
at constant currency
|
|
1%
|
Otis Worldwide
Corporation
Reconciliation of
Adjusted Operating Profit at Constant Currency
|
|
|
|
Quarter Ended
September 30, 2021 Compared with Quarter Ended September 30,
2020
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
Y/Y
|
New
Equipment
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
135
|
|
|
$
|
102
|
|
|
$
|
33
|
|
Impact of foreign
exchange
|
|
(8)
|
|
|
|
|
(8)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
127
|
|
|
$
|
102
|
|
|
$
|
25
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
449
|
|
|
$
|
422
|
|
|
$
|
27
|
|
Impact of foreign
exchange
|
|
(3)
|
|
|
|
|
(3)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
446
|
|
|
$
|
422
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
Otis
Consolidated
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
566
|
|
|
$
|
503
|
|
|
$
|
63
|
|
Impact of foreign
exchange
|
|
(11)
|
|
|
|
|
(11)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
555
|
|
|
$
|
503
|
|
|
$
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, 2021 Compared with Nine Months Ended September
30, 2020
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
Y/Y
|
New
Equipment
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
399
|
|
|
$
|
258
|
|
|
$
|
141
|
|
Impact of foreign
exchange
|
|
(25)
|
|
|
|
|
(25)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
374
|
|
|
$
|
258
|
|
|
$
|
116
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
1,333
|
|
|
$
|
1,216
|
|
|
$
|
117
|
|
Impact of foreign
exchange
|
|
(47)
|
|
|
|
|
(47)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
1,286
|
|
|
$
|
1,216
|
|
|
$
|
70
|
|
|
|
|
|
|
|
|
Otis
Consolidated
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
1,671
|
|
|
$
|
1,410
|
|
|
$
|
261
|
|
Impact of foreign
exchange
|
|
(72)
|
|
|
|
|
(72)
|
|
Adjusted Operating
Profit at constant currency
|
|
$
|
1,599
|
|
|
$
|
1,410
|
|
|
$
|
189
|
|
Otis Worldwide
Corporation
Condensed
Consolidated Balance Sheet
|
|
|
|
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
(amounts in
millions)
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,553
|
|
|
$
|
1,782
|
|
Accounts receivable,
net
|
|
3,217
|
|
|
3,148
|
|
Contract
assets
|
|
536
|
|
|
458
|
|
Inventories,
net
|
|
628
|
|
|
659
|
|
Other current
assets
|
|
441
|
|
|
446
|
|
Total Current
Assets
|
|
6,375
|
|
|
6,493
|
|
Future income tax
benefits
|
|
352
|
|
|
334
|
|
Fixed assets,
net
|
|
775
|
|
|
774
|
|
Operating lease
right-of-use assets
|
|
553
|
|
|
542
|
|
Intangible assets,
net
|
|
434
|
|
|
484
|
|
Goodwill
|
|
1,702
|
|
|
1,773
|
|
Other
assets
|
|
281
|
|
|
310
|
|
Total
Assets
|
|
$
|
10,472
|
|
|
$
|
10,710
|
|
|
|
|
|
|
Liabilities and
(Deficit) Equity
|
|
|
|
|
Short-term
borrowings
|
|
$
|
38
|
|
|
$
|
701
|
|
Accounts
payable
|
|
1,662
|
|
|
1,453
|
|
Accrued
liabilities
|
|
1,905
|
|
|
1,977
|
|
Contract
liabilities
|
|
2,758
|
|
|
2,542
|
|
Total Current
Liabilities
|
|
6,363
|
|
|
6,673
|
|
Long-term
debt
|
|
5,458
|
|
|
5,262
|
|
Future pension and
postretirement benefit obligations
|
|
635
|
|
|
654
|
|
Operating lease
liabilities
|
|
364
|
|
|
367
|
|
Future income tax
obligations
|
|
274
|
|
|
321
|
|
Other long-term
liabilities
|
|
611
|
|
|
634
|
|
Total
Liabilities
|
|
13,705
|
|
|
13,911
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
62
|
|
|
83
|
|
Shareholders'
(Deficit) Equity:
|
|
|
|
|
Preferred
Stock
|
|
—
|
|
|
—
|
|
Common Stock and
additional paid-in capital
|
|
102
|
|
|
59
|
|
Treasury
Stock
|
|
(725)
|
|
|
—
|
|
Accumulated
deficit
|
|
(2,404)
|
|
|
(3,076)
|
|
Accumulated other
comprehensive income (loss)
|
|
(827)
|
|
|
(815)
|
|
Total Shareholders'
(Deficit) Equity
|
|
(3,854)
|
|
|
(3,832)
|
|
Noncontrolling
interest
|
|
559
|
|
|
548
|
|
Total (Deficit)
Equity
|
|
(3,295)
|
|
|
(3,284)
|
|
Total Liabilities and
(Deficit) Equity
|
|
$
|
10,472
|
|
|
$
|
10,710
|
|
Otis Worldwide
Corporation
Condensed
Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income from
operations
|
|
$
|
379
|
|
|
$
|
310
|
|
|
$
|
1,110
|
|
|
$
|
777
|
|
Adjustments to
reconcile net income to net cash flows provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
50
|
|
|
48
|
|
|
152
|
|
|
140
|
|
Stock compensation
cost
|
|
17
|
|
|
17
|
|
|
48
|
|
|
44
|
|
Loss on fixed asset
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
Change in:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(53)
|
|
|
(20)
|
|
|
(107)
|
|
|
(79)
|
|
Contract assets and
liabilities, current
|
|
(85)
|
|
|
11
|
|
|
140
|
|
|
277
|
|
Inventories,
net
|
|
35
|
|
|
(30)
|
|
|
18
|
|
|
(101)
|
|
Accounts
payable
|
|
106
|
|
|
2
|
|
|
230
|
|
|
19
|
|
Pension
contributions
|
|
(5)
|
|
|
(8)
|
|
|
(23)
|
|
|
(28)
|
|
Other operating
activities, net
|
|
(89)
|
|
|
18
|
|
|
(95)
|
|
|
67
|
|
Net cash flows
provided by operating activities
|
|
355
|
|
|
348
|
|
|
1,473
|
|
|
1,171
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(31)
|
|
|
(37)
|
|
|
(115)
|
|
|
(112)
|
|
Investments in
businesses and intangible assets, net of cash acquired
|
|
(8)
|
|
|
(34)
|
|
|
(59)
|
|
|
(50)
|
|
Proceeds from sale of
(investments in) equity securities, net
|
|
—
|
|
|
—
|
|
|
40
|
|
|
(51)
|
|
Other investing
activities, net
|
|
37
|
|
|
(76)
|
|
|
65
|
|
|
(76)
|
|
Net cash flows used in
investing activities
|
|
(2)
|
|
|
(147)
|
|
|
(69)
|
|
|
(289)
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
(300)
|
|
|
509
|
|
|
(645)
|
|
|
510
|
|
Issuance of long-term
debt, net
|
|
—
|
|
|
—
|
|
|
199
|
|
|
6,300
|
|
Payment of debt
issuance costs
|
|
(9)
|
|
|
—
|
|
|
(11)
|
|
|
(43)
|
|
Repayment of long-term
debt
|
|
—
|
|
|
(750)
|
|
|
—
|
|
|
(750)
|
|
Net transfers from
(to) UTC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,330)
|
|
Dividends paid on
Common Stock
|
|
(102)
|
|
|
(86)
|
|
|
(291)
|
|
|
(173)
|
|
Repurchases of Common
Stock
|
|
(219)
|
|
|
—
|
|
|
(725)
|
|
|
—
|
|
Dividends paid to
noncontrolling interest
|
|
(75)
|
|
|
(82)
|
|
|
(130)
|
|
|
(125)
|
|
Other financing
activities, net
|
|
—
|
|
|
—
|
|
|
(18)
|
|
|
22
|
|
Net cash flows
provided by (used in) financing activities
|
|
(705)
|
|
|
(409)
|
|
|
(1,621)
|
|
|
(589)
|
|
Summary of
Activity:
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
355
|
|
|
348
|
|
|
1,473
|
|
|
1,171
|
|
Net cash used in
investing activities
|
|
(2)
|
|
|
(147)
|
|
|
(69)
|
|
|
(289)
|
|
Net cash provided by
(used in) financing activities
|
|
(705)
|
|
|
(409)
|
|
|
(1,621)
|
|
|
(589)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(19)
|
|
|
33
|
|
|
(11)
|
|
|
—
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
(371)
|
|
|
(175)
|
|
|
(228)
|
|
|
293
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
1,944
|
|
|
1,927
|
|
|
1,801
|
|
|
1,459
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
1,573
|
|
|
1,752
|
|
|
1,573
|
|
|
1,752
|
|
Less: Restricted
cash
|
|
20
|
|
|
19
|
|
|
20
|
|
|
19
|
|
Cash and cash
equivalents, end of period
|
|
$
|
1,553
|
|
|
$
|
1,733
|
|
|
$
|
1,553
|
|
|
$
|
1,733
|
|
Otis Worldwide
Corporation
Free Cash Flow
Reconciliation
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Net income
attributable to common shareholders
|
|
$
|
331
|
|
|
|
$
|
266
|
|
|
Net cash flows
provided by operating activities
|
|
$
|
355
|
|
|
|
$
|
348
|
|
|
Net cash flows
provided by operating activities as a percentage of net
income attributable to common shareholders
|
|
|
107
|
%
|
|
|
131
|
%
|
Capital
expenditures
|
|
(31)
|
|
|
|
(37)
|
|
|
Capital expenditures
as a percentage of net income attributable to
common shareholders
|
|
|
(9)
|
%
|
|
|
(14)
|
%
|
Free cash
flow
|
|
$
|
324
|
|
|
|
$
|
311
|
|
|
Free cash flow as a
percentage of net income attributable to common
shareholders
|
|
|
98
|
%
|
|
|
117
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
(Unaudited)
|
(dollars in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Net income
attributable to common shareholders
|
|
$
|
965
|
|
|
|
$
|
655
|
|
|
Net cash flows
provided by operating activities
|
|
$
|
1,473
|
|
|
|
$
|
1,171
|
|
|
Net cash flows
provided by operating activities as a percentage of net
income attributable to common shareholders
|
|
|
153
|
%
|
|
|
179
|
%
|
Capital
expenditures
|
|
(115)
|
|
|
|
(112)
|
|
|
Capital expenditures
as a percentage of net income attributable to
common shareholders
|
|
|
(12)
|
%
|
|
|
(17)
|
%
|
Free cash
flow
|
|
$
|
1,358
|
|
|
|
$
|
1,059
|
|
|
Free cash flow as a
percentage of net income attributable to common
shareholders
|
|
|
141
|
%
|
|
|
162
|
%
|
Media Contact:
Ray Hernandez
+1-860-674-3029
Ray.Hernandez@otis.com
Investor Relations Contact:
Michael Rednor
+1-860-676-6011
investorrelations@otis.com
View original
content:https://www.prnewswire.com/news-releases/otis-reports-third-quarter-2021-results-301407384.html
SOURCE Otis Worldwide Corporation