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Corporation
INDUSTRIAL | Manufacturing / Heavy Equipment Manufacturing
otis.com

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Founded Year

1853

Stage

IPO - II | IPO

Market Cap

2.67B

About Otis

Otis specializes in elevators escalators and moving walkways.

Otis Headquarter Location

1 Carrier Place

Farmington, Connecticut, 06032,

United States

800-233-6847

Latest Otis News

Elevator Maker Otis Faces Pushback From Suppliers on Prices

Jul 28, 2021

July 28, 2021 The CFO says the company wants to lock in raw material prices to keep a lid on costs, but suppliers are less responsive than they were last year. “We certainly try to buy ahead as much as we can,” Chief Financial Officer Rahul Ghai said in an interview on Tuesday. But this time, most of Otis’ suppliers have been “very reluctant to lock down prices”, marking a change from last year, when more of them agreed to set prices in advance, Mr. Ghai said. Said. Otis was spun off from United Technologies last year Corporation , which split into three companies: Otis, Carrier Global Corporation and UTC, which merged with Raytheon Company to form Raytheon Technologies Corp. In order to pass on some of the higher costs to customers, Otis, which also builds escalators and moving walkways, plans to negotiate higher prices project by project and “as broad as possible—in every part of the term.” based”. ,” said Mr. Ghai. A spokesman said Otis purchases materials including steel, copper, aluminum, rare-earth magnets and lumber. The company declined to say how many raw material suppliers it has and how much it expects to increase prices. According to data provider S&P Global Platts, the spot price for domestic hot-rolled coiled steel—a benchmark price for the industry—was $1,839.50 on Monday, up more than 80% since the end of 2020. The price of copper has also risen in recent months. Otis expects steel prices to peak in August, Mr. Ghai said. The finance chief, who worked at UTC until 2012 and joined Otis in 2019, said he was looking at opportunities for additional savings and increased efficiency. He added that higher-forecast manufacturing growth in the US and China will help offset some of the negative impacts caused by higher raw material costs. The current shortage of microchips, which have caused carmakers to reduce or stop production, has not had a significant impact on Otis, the spokesperson said. The spokesperson said the company is placing orders longer, expanding its sourcing and redesigning products to be able to use the chips. Otis reported Monday that second-quarter net sales jumped 22% from a year ago to $3.7 billion, while net income jumped 46% to $326 million. The company reported net revenue of $1.97 billion from servicing elevators and other products in the second quarter, up from $1.74 billion in the year-ago period. That part of business is usually less affected by higher commodity prices, Mr. Ghai said. Mr. Ghai said during an earnings call on Monday that most of the company’s service contracts in Europe and the US have a built-in price mechanism, which allows Otis to pass on higher labor costs to customers. Nicolas Heymann, co-head of the global industrial infrastructure unit, said Otis would see financial gains from the recent price hike in 2022, as installing a new elevator takes time, which could be six to 12 months. . William Blair & Company, a financial services firm. Other companies in the sector also face inflationary pressures, Heyman said. “Inflation is ubiquitous across almost all sectors and parts of the supply chain. It’s not just copper and steel, it’s logistics, transportation. Everybody gets it,” said Mr Heyman. —Bob Tita contributed to this article. .

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Research containing Otis

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CB Insights Intelligence Analysts have mentioned Otis in 2 CB Insights research briefs, most recently on Dec 15, 2020.

Otis Patents

Otis has filed 2 patents.

The 3 most popular patent topics include:

  • Conditions of the mucous membranes
  • Conservation and restoration
  • Dentistry
patents chart

Application Date

Grant Date

Title

Related Topics

Status

10/8/2018

3/16/2021

Sewing, Sailing rigs and rigging, Conservation and restoration, Water pollution, Mechanical power transmission

Grant

00/00/0000

00/00/0000

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Application Date

10/8/2018

00/00/0000

Grant Date

3/16/2021

00/00/0000

Title

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Related Topics

Sewing, Sailing rigs and rigging, Conservation and restoration, Water pollution, Mechanical power transmission

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Status

Grant

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