(Reuters) -Elevator maker Otis raised its full-year revenue forecast on Wednesday, after beating first-quarter profit estimates on sustained demand for its maintenance and modernization services.
The steady market for maintenance, repair and parts replacement countered the Farmington, Connecticut-based company’s muted demand for new equipment, which was impacted by a pressured Chinese property market during the quarter.
Otis posted an adjusted profit of 92 cents per share for the quarter ended March 31, compared with analysts’ average estimate of 91 cents per share, according to data compiled by LSEG.
Its net sales fell 2.5% to $3.35 billion, compared with estimates of $3.37 billion, amid the ongoing macroeconomic environment.
However, the company raised its full-year 2025 revenue forecast to the range of $14.6 billion to $14.8 billion from its earlier forecast of $14.1 billion to $14.4 billion.
Manufacturers who depend on global supply chains for the procurement of raw materials and product distribution have been faced with uncertainties in the wake of the worldwide trade war stemming from U.S. President Donald Trump’s tariff policies.
Otis’ exposure to China, its largest new equipment market, adds further pressure to its operations due to the heavier tariff sanctions on the country.
The company expects a tariff impact of $45 million to $75 million on its operating profit during the year.
It reiterated its annual adjusted profit forecast of $4 to $4.10 per share, compared with estimates of $4.06 per share.
The company’s shares fell 3% before the bell.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)
