(Reuters) - Elevator maker Otis Worldwide (NYSE:OTIS) lowered its 2024 net sales forecast on Wednesday on softening demand for its new equipment from North America and China.
The company expects its full-year net sales to be between $14.3 billion and $14.5 billion, down from its previous forecast of $14.5 billion to $14.8 billion.
Sales growth in the United States decreased as inflationary pressures slowed construction activity, while a slow recovery in China's property market hurt the company's new equipment segment that makes and installs elevators, escalators and moving walkways.
Quarterly net sales for the company's new equipment fell 11.4% to $1.42 billion from a year ago.
However, net sales for its mainstay services segment, which carries out maintenance, repairs and product upgrades, rose 3% to $2.18 billion, on steady demand.
Otis' total net sales slipped 3.2% to $3.6 billion in the second quarter, missing analysts' average estimate of $3.73 billion, according to LSEG data.
The company also raised the lower limit for its annual adjusted profit to between $3.85 and $3.90 per share, compared with the earlier range of $3.83 to $3.90.
It reported an adjusted profit of $1.06 per share in the quarter ended June 30, slightly above expectation of $1.03.