Otis profits up in 4Q, down for year

Farmington elevator manufacturer Otis Worldwide Corp. saw its fourth-quarter profit rise 15% as its CEO projects sales growth up to 6.5% in 2021.

In a Monday morning call with shareholders, Otis CEO Judy Marks said the company’s improved performance through the COVID-19 crisis shows its strength as an independent company. 

“I’m pleased we delivered a strong quarter in a challenging year,” Marks said on an earnings call Monday. “The foundation we’ve grown this year as an independent company … gives us confidence.”

Otis has operated as an independent spinoff of the former United Technologies Corp. since last spring. UTC merged with defense contractor Raytheon to form Raytheon Technologies Corp.

In the final three months of 2020, Otis reported $251 million in profit, or 58 cents per diluted share. That’s 15% above the same period in 2019, when it posted a $218 million profit, or 50 cents per diluted share. Sales in the quarter reached about $3.5 billion, 4% higher than the $3.4 billion in sales for 2019’s fourth quarter.

Profits for the year dropped 18% to $906 million, or $2.08 per diluted share — compared with $1.1 billion, or $2.58 per diluted share in 2019. Sales were down nearly 3% in 2020, with about $12.8 billion, compared with $13.1 billion in 2019.

During the call, Marks said in 2020 Otis added about 100,000 IoT elevators that are connected to the internet through its Otis ONE slate of internet-enabled products. About a quarter of Otis’ elevators are currently IoT-enabled, Marks said, and the company wants to grow that to 60%.