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UTC - United Technologies Corporation

04/03/2020 | Press release | Distributed by Public on 04/03/2020 04:42

Otis Common Stock Begins Trading on New York Stock Exchange

'This is a historic day for Otis as we move forward as a strong stand-alone company. Throughout our 167 years in business, we have experienced all types of markets and historic events - and rose to respond. We're confident we will endure and succeed despite today's current challenges,' said Otis President & CEO Judy Marks. 'Otis continues to be well-positioned for sustained, long-term growth as our business model brings recurring revenue even in times of economic headwinds.'

Otis' industry leadership is supported by an unparalleled maintenance portfolio that provides recurring sales, best-in-class margins with expansion runway and robust free cash flow. The company's business model is fueled by new equipment sales, maintenance & repair, and modernization projects. As units continue to get added to the industry's new equipment segment, the installed base grows, enabling even more service opportunities.

'We operate in an industry with strong fundamentals, backed by macro trends such as urbanization, a growing middle class and digitalization,' Marks added. 'Our vast global footprint and focus on strategic digital investments enable us to better serve our customers locally, deliver on our commitments worldwide and support our growth as cities expand.'

Otis reported sales of $13.1 billion in 2019. The company continues to monitor the evolving effect of COVID-19 on its operations and 2020 financial outlook. An update on the impact will be provided with first quarter earnings in early May.

As part of the separation, United Technologies shareholders of record as of 5 p.m. EDT on March 19, 2020, will receive a distribution of one-half (0.5) share of Otis common stock for each share of United Technologies common stock held. No fractional shares of Otis will be issued. UTX shareowners will receive cash in lieu of any fractional shares. UTX shareowners will also retain their shares of UTX common stock.

About Otis

Built on a legacy of innovation, Otis was founded in 1853 after Elisha Otis invented the elevator safety brake, giving rise to the modern city, transforming how people live and work, and revolutionizing architecture itself. Today, we are the world's leading company for elevator and escalator manufacturing, installation and service. We move 2 billion people a day and maintain more than 2 million customer units worldwide, the industry's largest maintenance portfolio. We can be found in many of the world's most recognizable buildings, as well as the busiest transportation hubs and retail centers - we are everywhere people are on the move. Headquartered in Connecticut, USA, Otis is 69,000 people strong, including 40,000 field professionals, all committed to meeting the diverse needs of our customers and passengers in more than 200 countries and territories worldwide. To learn more, visit www.otis.com and follow us on LinkedIn, Instagram, Facebook and Twitter @OtisElevatorCo.