A.O. Smith reports record third quarter earnings

Freeman Staff

Oct. 21, 2015

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 end markets.”