Otis cuts FY sales forecast as quarterly results miss on China weakness
Oct 30(Reuters) -Otis OTIS.N cut its annual sales forecast and marginally missed third-quarter estimates on Wednesday, as the elevator maker navigates a challenging Chinese property market.
Weak construction activity in North America and Europe and pressure on China's real estate activity continued to impact the elevator maker's new equipment sales during the quarter.
Otis now expects its annual sales to be about $14.2 billion, below its prior expectation of between $14.3 billion and $14.5 billion.
It also forecast its annual adjusted profit to be around $3.85 per share, which is the lower end of its prior outlook.
Quarterly net sales in Otis' new equipment segment fell nearly 9% from a year earlier to $1.3 billion.
The Farmington, Connecticut-based company posted quarterly adjusted profit of 96 cents per share, compared with analysts' estimates of 97 cents per share, according to LSEG-compiled data.
Total net sales for the quarter ended Sept. 30 fell to $3.55 billion, compared with estimates of $3.59 billion.
Reporting by Aatreyee Dasgupta and Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri
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