NORTHAMPTON, MA - Otis Elevator Korea, a subsidiary of Otis Worldwide Corporation (NYSE:OTIS), has achieved ISO 50001 certification for its Manufacturing & Engineering Center, demonstrating a commitment to energy efficiency and environmental sustainability. This certification indicates adherence to the international standard for energy management systems, aimed at boosting energy performance and reducing greenhouse gas emissions.
The certification process entailed a thorough energy review of Otis Korea's facilities, the implementation of new manuals compliant with ISO standards, and the establishment of a system to continuously identify and improve energy management areas. With this accomplishment, Otis Korea joins the ranks of 11 manufacturing factories under Otis Worldwide Corporation that have obtained the ISO 50001 certification.
Byeong-Min Cho from Otis Korea's Operation Business Division commented on the achievement, highlighting the collective efforts of the team in attaining the certification as part of the company's broader environmental, social, and governance (ESG) initiatives.
In addition to the ISO 50001 certification, Otis Korea has also successfully renewed its ISO 14001 certification, an environmental management systems standard first awarded to the center in 2021. Achieving this renewal reaffirms Otis's dedication to effective environmental management, aligning with its ESG goal to certify all Otis factories by 2025—a target met well ahead of schedule.
Otis Worldwide Corporation, the parent company, is renowned for its global leadership in the manufacture, installation, and servicing of elevators and escalators. The company is responsible for moving an estimated 2.3 billion people daily and maintains roughly 2.3 million customer units worldwide, boasting the largest service portfolio in the industry. Based in Connecticut, USA, Otis employs a workforce of approximately 71,000 people, including 42,000 field professionals operating in over 200 countries and territories.
For further details on Otis's environmental efforts and management systems, the company refers to its latest ESG Report. This news is based on a recent press release statement from Otis Worldwide Corporation.
In other recent news, Otis Worldwide Corp has seen significant developments. The company has appointed Cristina Méndez as Executive Vice President and Chief Financial Officer, offering her a revised compensation package that includes an annual base salary of $770,000 and a supplemental long-term incentive plan award valued at approximately $2,390,000. In terms of financial performance, Otis posted robust second-quarter results, with net sales reaching $3.6 billion. Additionally, the company declared a quarterly dividend of $0.39 per share, demonstrating continued financial stability.
Morgan Stanley (NYSE:MS) initiated coverage on Otis with an Equalweight rating, acknowledging the strength of Otis's service-led business but also noting potential risks, particularly in the New Equipment business. Otis has also raised its full-year adjusted earnings per share (EPS) outlook to a range of $3.85 to $3.90, projecting approximately 10% growth. The company anticipates savings of $175 million by mid-2025 from Project Uplift, a strategic initiative aimed at boosting efficiency.
Looking ahead, Otis forecasts 2024 sales to be between $14.3 billion and $14.5 billion, with organic sales growth of 1% to 3%. The adjusted operating profit is projected to increase by $135 million to $175 million. These recent developments underscore Otis's resilience amid market challenges.
InvestingPro Insights
Otis Worldwide Corporation (NYSE:OTIS), a leader in the vertical transportation industry, not only shows a commitment to energy efficiency and sustainability with its recent ISO 50001 certification but also presents a solid financial profile. According to InvestingPro data, Otis has a market capitalization of 39.52 billion USD, reflecting the substantial size of the company within the machinery industry. The company's Price-to-Earnings (P/E) ratio stands at 27.44, suggesting investors are willing to pay a premium for its earnings, which may be linked to its reputation and market position.
InvestingPro Tips reveal that Otis has been able to consistently increase its dividend over the past four years, indicating a stable and shareholder-friendly financial policy. Additionally, the company has been profitable over the last twelve months, underlining its operational success. It's important to note that while some analysts have revised their earnings expectations downwards for the upcoming period, Otis still operates with a moderate level of debt, which could provide some financial flexibility.
Investors interested in the company's detailed financial metrics and additional InvestingPro Tips can explore further by visiting the dedicated page for Otis Worldwide Corporation on InvestingPro: https://www.investing.com/pro/OTIS. There, they will find a comprehensive list of 11 additional tips, which could inform their investment decisions regarding Otis.
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