Hi. Yes. EMEA was up low single digits and Asia grew high teens driven by China where organic sales were up double digits. So our sales force, I mean, obviously it's pretty broad-based, Miguel, and it's both in Tier 1 and Tier 2 [Indiscernible] and that it is something we've done so that as we are adding more channel partners, we need our sales force to support the channel partners that we are hiring and gain our fair share of wallet from those agents and distributors. Is that correct? I think, Judy, you're exactly right. Despite the resurgence of COVID in Asia-Pacific, there is no change to the maintenance and repair outlook that is still expected to be up approximately 4% for the year, driven by continued maintenance portfolio growth and recovery in discretionary repair. Through the first nine months, all sectors in China have been strong, residential, commercial, and infrastructure we've seen increased activity in Tier 1 and 2 cities, as well as in infrastructure and with our key accounts. Then I'll hand it over to Judy to talk about the operational opportunities that we have. Positioning us well to deliver growth across all regions and all lines of business while building backlog to support continued growth in 2022. 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. Lastly, we're improving our free cash flow outlook to approximately $1.5 billion to $1.55 billion with a 125% conversion of GAAP net income. Patrick, I just want to stay away from that on the call. For example, I think we've discussed this offline, but Spain has a tax rate of 25%. Otis' momentum remains strong in Asia, up mid-teens, including sixth consecutive quarter of growth in China. We now expect sales for the year to be approximately $14.3 billion, up 11.8% to 12.3% versus the prior year, and up 8.5% to 9% organically. And then really the nature of my question is it seems like there's some government pressure on these developers to complete projects, right? With that, I'd like to turn the call over to Judy. Looking forward for the balance of the year on Slide 8. Otis continued to make significant progress driving our long-term strategic priorities as reflected in the strong financial performance year-to-date. That's what's helping us continue to grow our new equipment margin. Could it be better? Thank you. Third quarter adjusted EPS was up 11.6% or $0.08. President and CEO Judy Marks Elected as Chair of Otis Worldwide Sign up to get PRNs top stories and curated news delivered to your inbox weekly! And if you look at even the full-year guide, last quarter we said maybe it's 90. The year-over-year growth in operating profit reflects the benefits of higher volume, service productivity initiatives, favorable service pricing, and strong installation execution. I will now turn over to Michael Rednor, Senior Director and Investor Relations. And but this 3% is our total exposure to these customers. , , , , , , Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Otis Unveils Connected Gen3 Core Elevator for North America. This is up $50 million from the prior outlook from improved net income and reduced working capital. There's lower net income in the fourth quarter than in the third quarter. So we will certainly try to flow through service price increases and we'll see what the market will bear there. Those will yield in '22. While the external environment remains fluid, I'm confident the investments we've made over the last few years and our progress as an independent Company have set a new path and will position us well for 2022. So very, very strong performance on cash. In service, we are adjusting our outlook to approximately 4% growth. And the floor stars have been down just Last couple of months after a very, very strong first half. As expected, after 47% growth in the second quarter, orders declined year-over-year in the Americas, primarily due to timing as awards which proceed order bookings in North America were up approximately 24% versus the prior year. The combination of the offices of President and CEO and Chair of the Board underscores the Board's confidence in Marks, Otis and the extended Otis team. In the Americas, Otis was selected to continue a 35-year partnership with One Commerce Square in downtown Philadelphia. And MOD Joel, we think it really is demand delay versus disruption, versus elimination actually or destruction. How big a percentage of earnings is that when we take into account like the impacts from joint ventures, etc.? Please go ahead. We saw good results in Q2. Thank you, Mike, and thank you, everyone, for joining us. And the service businesses are accelerating very, very nicely as well driven by the portfolio growth that we've been talking about. But again, go back to our pieces is going to be that for next year, we can continue driving earnings expansion in both segments, new equipment coming from higher volume, given where Judy said that are planned to ending the backlog, it have that low-single-digit growth range. Marks will also continue in her current role as President and Chief Executive Officer of Otis, a role she has held since June 2019. So, you put all that in context. In April 2020, Judy led the successful spin of Otis to an independent publicly traded company on the NYSE. Our sales force is up by more than 10% in relation to the growth in the channel partners, so we have invested a ton to increase our reach in China which is up close to 10 points as well. I'm just wondering if you can maybe quantify that a little bit more, and also tell us to what extent that's still potential here going forward in the next few quarters? So that's where we'll take put all that together, the China profit abilities maybe overall lower than where Otis reports. And maybe a little bit of color on the price that you do have in the market currently when you do expect it to show up in the P&L. There are 1 older and 4 younger executives at Otis Worldwide. So that's about 80 million out. So strong demand and we're going to continue to try and get price everywhere we can. The challenge on MOD is it is somewhat more bespoke. But as we think about some future strategic growth opportunities across the continent, this is going to give us just that full capability to optimize everything from our talent to our operations in our facilities. So we continue do well across all segments and I think our share base -- share gain is fairly broad-based. The Dodge Momentum Index was up 164.9 and the Architecture Billings Index was at 56.6. The estimated net worth of Judith Fran Marks is at least $1.41 million as of October 30th, 2020. Judy Marks is Chair/President/CEO at Otis Worldwide Corporation. EMEA was down 1.8% from the timing of major project orders. So yeah, just wonder if you could talk a little bit more about that in terms of what this 3% number is and just to clarify that. And that's what you're seeing come through. And they'll probably start up maybe showing up in late Q4 or early Q1. So, we're -- our strategy really is working there. Overall, modernization backlog was up 2% at constant currency. And on service, I think our pricing should be a tailwind for next year, given where prices are. Judy Marks, Chair, CEO & President, Otis Worldwide Corporation, Chair The company operates through two segments, New Equipment and Service. And America 's pricing was slightly worse than first half and it's more the mix of customers as where we saw the pressure. Right. Please disable your ad-blocker and refresh. So that has been the major push share and that is where you're seeing. But on modernization jobs, it's a little bit harder, because they're shorter in duration. Overall, the organic sales growth outlook of 8.5% to 9% reflects a strong year-to-date performance and good momentum. It's an interesting question, Patrick. If you take out the lumpiness and just go year-to-date, we're at 13.3% growth in the Americas and a 12-month roll of a healthy number as well. And our last question comes from the line of Joel Spungin with Berenberg, your line is open. Does the assumption for a flattish market there embed any decline in floor starts? So, it got slightly worse. Judith F. Marks is the Chair, Pres & CEO at Otis Worldwide. Your line is open, please go ahead. I mean, if you think about the working capital reduction that we've been able to drive, we've had occurred consecutive quarter of negative working capital. No. Whether you go back to the GFC or 12 years ago, Julian, it's at the end of the GFC which is really when we felt it more in the Americas and our guide has us going up mid-teens from the low teens. It's a great service portfolio, we have three factories there. In China, we're seeing traction on our new Gen3 connected elevators reaffirming our investment in the innovation that Otis ONE provides to our customers and passengers. 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. The Company will also refer to adjusted results, where adjustments were made as though Otis was a standalone Company in the current period and prior year. So, it goes in a couple of dozen crates, right? We just filed a prospectus, its going to take 3 to 4 months for that filing to get improved then we launch the tender, then there is a divesting period and it may take us time to ramp up to the full ownership. One of your competitors called out some impacts from that, but also called out some product delays, which beat behind some of the new equipments weakness that they saw. FARMINGTON, Conn., Dec. 8, 2021 /PRNewswire/ -- Otis Worldwide Corp. (NYSE: OTIS ), the world's leading company for elevator and escalator manufacturing, installation and service, today announced . Ms. Marks owns 16,757 shares of Otis Worldwide stock worth more than $1,408,929 as of May 23rd. We've added another 150 A&Ds in the third quarter. But we have done everything from spot buys and redesigning some of our chip sets from an engineering perspective to use more common chips to make sure there was no impact to our customers. Otis Worldwide executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. We just started it. We move 2 billion people a day and maintain approximately 2.1 million customer units . At constant currency, operating profit is expected to be up between a $195 to $205 million. The company was founded in 1853 and is headquartered in Farmington, Connecticut. So, the indices are trending the right way and we're doing well. For Judy, leadership is about creating a sense of mission among colleagues. So that's kind of where we are. There are no executives at Otis Worldwide getting paid more. And then, if we can get some of these maintenance escalators, but Service pricing has been held up really strong. So from a financial standpoint, Cai, it's very, very straightforward. Private Securities Litigation Reform Act of 1995. As President and CEO, Judy is leading Otis through a digital and cultural transformation that will drive its long-term success as an independent, publicly traded company. Again, we haven't had that opportunity. Good morning, Judy. This includes IoT-based service solutions with proactive data analytics for predictive maintenance; advanced video analytics and dispatching systems to manage varying traffic patterns; and a new generation of elevators that are connected, data rich, safer, healthier, and more intelligent, efficient and comfortable than ever. And then on the Zardoya purchase -- I mean if you took that cash and bought back stock it looks like Zardoya is modestly maybe 1% accretive to full-year basis and you already control it. So that is what is driving our service productivity, which continues to be -- which continued to be strong in Q2. Let me start with the pricing and I'll hand it to Judy to add some color on the competitive dynamics here. Rahul, I think that price was down one, but also flat sequentially. Thank you. We believe we can do that in the Americas because their awards are up as Rahul said in his opening remarks and that is a leading indicator where we've got the awards already and we've got the LOIs and now we have to move it to a booking and get everything finished but we expect a strong fourth quarter and plan to end the year with a backlog that all -- of 2 plus percent hopefully closer to 3, we'll have to see where that comes out so that we start '22 strong. But if you step back and even look at the market overall, if you look at the flow space under construction, is up 8% year-to-date and 10+% over 2019, the real estate investment is up 9% year-over-year so -- and historically, there has been a very, very strong correlation between these two metrics and the EBITDA growth. Installation productivity initiatives in new equipment and favorable service pricing, and productivity helps to offset the headwinds from commodity inflation and the absence of temporary cost actions taken last year to alleviate the impact from COVID-19. Yeah. Just would love to get your thoughts on that. Please go ahead. And is that the risk care might not just be with potentially in Ever Grand or whoever going bust, but actually, that it causes distress in the distribution network in China and that you have exposed the distributors who might be at risk if some of these guys go under. Good morning [Indiscernible] thanks for taking my questions. And our next question comes from the line of Jeff Sprague with Vertical Research. But pricing in Americas in the volume business was consistent with first half. We're managing it effectively. She built her career on a host of challenging assignments, creating solutions for both global customers and government entities. We are not seeing delays due to steel. I'm just interested, for example, your comments about EMEA bidding through late decision-making, whether or not that's likely to come through fall maybe next year. Judy serves on the Board of Directors of Otis Worldwide Corporation and earned a degree in electrical engineering from Lehigh University. On average, Otis Worldwide executives and independent directors trade stock every 17 days with the average trade being worth of $907,902. People make a decision every day about what kind of work theyre going to do, she says. So somewhere in that range for '22 and then mid-single-digit percentage accretion in 2023. And I just will call your attention to that chart in the appendix and just put that as well in the context. A couple of lots to just quickly, maybe you can just start with China again on all your Slide 16, just to help me understand when you talk about the 3% of China sales, is that both your direct and indirect of the total exposure to those property to benefit intriguing sales last third-party distributors, whatever it might be, I guess the reason I'm asking just ready to open up some -- just to hear you thoughts? All right. Your line is open, please go ahead. In fact, the most profitable of all regions in terms of how we report. Let me start with the steel and rural, please add. We've seen that. '21, we've seen high single-digit growth. And we're going to be past our mid-term guidance we gave at Investor Day in terms of cash flow for the second year. Now, the two things that -- I would say, three things that work as you go from sequentially from 3Q to 4Q. For more information, please see our Cookie Notice. We're planning for a flattish '22, and we're going to continue to execute our strategies to gain share in that flattish '22. Are these tier one cities or are you expanding more into tier three cities? Ms Marks owns over 53,549 units of Otis Worldwide stock worth over $8,993,450 and over the last 7 years she sold OTIS stock worth over $0. With that, I'll turn it over to Rahul to walk through our Q3 results and 2021 outlook in more detail. And again, that goes back in [Indiscernible] discussion that [Indiscernible] Joel that you've had on this call around our expectations for the China market. So we've been spending a lot of time and effort to understand where the supply basis and how we can take costs out of that. About Otis Otis is the world's leading elevator and escalator manufacturing, installation and service company. And are we seeing inflationary impact on steel causing some delays to tendering activities out there? Otis Worldwide - Wikipedia When typing in this field, a list of search results will appear and be automatically updated as you type. And then, within that, how much of that earnings are aftermarket or service versus direct residential OE exposure? As always, we remain focused on driving value for our customers, our colleagues, our communities, and our shareholders. On the call with me today are Judy Marks, President and Chief Executive Officer, and Raul Guy, Executive Vice President and Chief Financial Officer. Good to hear from you. Pricing was marginally unfavorable in the quarter and higher commodity prices were a headwind of $35 million. January 15, 2020, 2:28 PM PST When Judy Marks became CEO at Otis Elevator she was tasked with two huge jobs: spin out from corporate parent United Technologies and reinvent the 166-year-old. Obviously, a lot of noise in that country. Hope everyone's well. On a year-to-date basis, the adjusted tax rate is down by a 180 basis points. The above list of factors is not exhaustive or necessarily in order of importance. Career Judy was Chief Executive Officer at Dresser-Rand, and Executive Vice President of New Equipment Solutions at Dresser-Rand. That would be mentioned on Slide 16. We expect this transaction to be mid-single-digit percentage accretive in 2023. There is an incremental material procurement that happens in the field. Is this happening to you frequently? She will succeed Chris Kearneywho has served as Executive Chair since Otis became an independent, publicly traded company in April 2020. Judy Marks, Otis Worldwide Corporation: Profile and Biography 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. To learn more, visit www.otis.comand follow us on LinkedIn, Instagram, Facebookand Twitter@OtisElevatorCo. At the higher end of what we communicated in July, driven partially by higher new equipment volume in the year. Good morning. And where you will see that impact is those quotes have not yet converted to orders, which is fairly typical because that's the cycle from quotation to orders. Organic sales were up 8.1% in the third quarter, with 14.1% organic growth in the New Equipment segment and 3.6% organic growth in the Service segment. And again, I think going back to what we said earlier, what you will see is that the pricing that we have put out in the market, that should start showing up in late Q4 or early Q1 and that is where you'll see starts getting improvement in both our books margin and backlog margin. Overall year-to-date results reflect solid performance with approximately 1.5 points of new equipment share gain, our best portfolio growth in the last decade, 11% organic sales growth, and $261 million of adjusted operating profit growth, with margin expansion in both segments. Sure. Ms Marks owns over 53,549 units of Otis Worldwide stock worth over $8,978,556 and over the last 7 years she sold OTIS stock worth over $0. Can you comment on how are your clients reacting to these prepayments that you're asking for? I would like to turn the conference back over to Judy Marks for any further remarks. We want to end the year with higher than the 1% backlog we're sitting at today and our entire team understands that. Well, let me talk about the financial and --. So, we believe the work in progress is going to continue even with the developers that are experiencing 2 or 3 red lines. Please note, except where otherwise noted, the Company will speak to results from continuing operations, excluding restructuring and significant non-recurring items. As Rahul shared in his opening comments, our portfolio growth is in the high teens, so our service strategy is paying off with more coverage and more service depots and our proposal volume was up significantly this quarter. We've seen really good year-to-date snap back on repair, John, and we expect that to continue in fourth quarter and into next year, globally. Switching to operating profit on Slide 10, we now expect operating profit to be up between 260 to $270 million or so of the prior year with margin expansion of 20 basis points. Please go ahead. So, I hate to start off with the obvious question, but maybe we just talk about China. Our increase in our channel partners, increase in our sales force. You can click Accept if you agree to allow us to place cookies. The first one, again, coming back on China. [Operator Instructions] And our first question comes from the line of Nigel Coe with Wolfe Research. Judy Marks | Otis Leadership Team So, we've not seen that but Rahul, Ill let you add. The adjusted tax rate is now expected to be in a range of 28.5% to 29%, more than a 150 - basis point reduction versus the prior year and a 25-basis point improvement from the prior outlook at the midpoint. Yeah, and on new equipment, again, I think we've said that before; we expect some commodity headwinds next year, John, on the new equipment side we do given where the commodity prices were in the first half of this year we expect first half of next year to be in the same range as where we were in the second half of this year, so call it $30 to $35 million a quarter. Thank you. Judy has held senior leadership roles at three global icons IBM, Lockheed Martin and Siemens AG. So, it's going to be competitive, it's going to continue to be, but the end markets are growing across the globe. Thank you, Michelle. Again, this is ex-Asia and ex-China. Forward-looking StatementsThis communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. Innovation, we've been driving installation efficiency so that means the better project closeouts and ending the project at a higher margin than what we booked at. In parallel with the strong financial performance, we made additional progress on our ESG initiatives, focusing on sustainability has always been an integral part of our operations culture. And for any of these customers that cross these red lines, we've moved to cash - advanced cash basis. This is the sixth quarter in a row that we've had New Equipment growth in China. Now, it's typically 80-20; 80% new equipment and 20% service.
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