MILWAUKEE —The third quarter for
A.O. Smith Corporation was especially strong with the water
technology company reporting record results Wednesday. Its net
earnings for the third quarter were $73.6 million or $0.82 per share
compared with $50.6 million or $0.56 per share for the third quarter
of 2014, which included after-tax non-operating pension costs of
$2.9 million or $.03 per share.
A.O. Smith’s third quarter sales
were $625.1 million, which is 7.5 percent more than the third
quarter 2014 sales of $581.6 million. The Milwaukee company
attributes those increased sales to higher prices in North America,
higher sales of Lochinvar-branded products and commercial water
heaters in the U.S., and continued demand for the company’s water
heating and water treatment products in China.
In China, sales increased nearly
11 percent. If the impact from the strengthening U.S. dollar is
excluded, China sales increased more than 13 percent for the
quarter. In contrast, residential water heater volumes in the U.S.
declined in the current third quarter as compared with last year.
“Our organic growth continued to
outshine the industrial landscape,” said Ajita Rajendra, chairman
and chief executive officer, in a statement. “China year-to-date
sales are up 15 percent in local currency, demonstrating the
confidence of the Chinese consumer. Our North American business
continued to perform at a high level, and we have completed the
conversion to NAECA III-compliant residential products. Our
commercial water heater and boiler volumes continued to grow as a
result of continued new construction activities in our commercial