A. O. Smith Q4 Profit Rises - Update

(RTTNews) - Water heater maker A. O. Smith Corp. (AOS), Tuesday reported an increase in profit for the fourth quarter, driven largely by sales growth and lower income tax. Earnings for the quarter beat analysts' expectations by a penny, while revenues fell short of expectations.

Milwaukee, Wisconsin-based A. O. Smith's fourth-quarter profit rose to $42.4 million or $0.46 per share from $39.3 million or $0.42 per share last year.

Adjusted earnings from continuing operations were $48.0 million or $0.52 per share for the quarter. On average, ten analysts polled by Thomson Reuters expected a profit of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

A. O. Smith's fourth-quarter sales grew to $558.9 million from $524.3 million a year ago. Nine analysts had a consensus revenue estimate of $564.85 million for the quarter.

The company said its bottom line improved due mainly to higher profits in North America and a lower tax rate from last year.

Chief Executive Ajita Rajendra said, "Our North American water heater and boiler business out-performed the overall economy due to an improving housing market and continued customer demand for our high-efficiency condensing boilers."

Rajendra also added that the company's business in China "continued to grow significantly faster than that country's GDP."

Going forward, the company expects full-year 2014 earnings in the range of $2.01 to $2.16 per share and adjusted earnings of $2.15 to $2.30 per share. Analysts currently see earnings of $2.28 per share for 2014.

AOS is currently trading at $47.25, down $1.92 or 3.90%, on the NYSE.