Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

A. O. Smith Reports Third Quarter Earnings; Will Close 3 Electric Motor Plants
Oct 17, 2007
 Printable format
 Email this Article
 Search

A. O. Smith Corp. announced third quarter net earnings of $24.7 million or $0.79 per share compared with $17.0 million or $0.55 per share in the third quarter of 2006. Earnings in the current quarter included a tax benefit of $3.1 million or $0.10 per share. Third quarter sales were $553.5 million, 2% lower than the same period in 2006.

For the first nine months of 2007 the company earned $71.2 million or $2.29 per share compared with $57.6 million or $1.86 per share in 2006. Nine-month sales were $1.74 billion, 8% higher than nine-month sales of $1.62 billion in 2006, including the impact of GSW.

The company also announced plans to close two of its North American motor manufacturing operations as well as its motor facility in Budapest, Hungary. The company will record after-tax restructuring charges estimated to be $8 million, or $.25 per share, in the fourth quarter and $9 million, or $.30 per share, in 2008.

The company narrowed its previous earnings forecast for 2007 to $2.85 -$2.95 per share before the estimated $.25 per share fourth quarter charge, or $2.60 - $2.70 per share including the charge.

"Although we are pleased with our operating results in the third quarter and the first nine months of the year, we are concerned about the outlook as we enter 2008," Paul W. Jones, chairman and chief executive officer, said. "The weaker-than-expected housing market has negatively impacted existing plant utilization rates in our residential hermetic motor businesses." Therefore, he said, the company will accelerate the closing of operations in Scottsville, KY., and Mebane, NC, and are relocating production to other North American plants, including Juarez and Acuna, Mexico. In addition, the company will close a smaller operation in Hungary and transfer production to China.

Third quarter sales for water products of $334.5 million declined approximately 3% compared with the third quarter of 2006 primarily as a result of lower sales in the residential market, partially offset by increased sales in other market segments including a nearly 20 percent increase in China.

Despite the lower residential volumes and higher costs for raw materials and components, operating profit of $33.6 million increased 15% compared with the third quarter of 2006, as a result of acquisition synergies, higher profits in China, and lower SG&A expense. Operating profit margin was 10% compared with 8.5% last year. For electrical products, third quarter sales of $220.1 million were essentially flat compared with the same period last year. Modest increases in the distribution and commercial hermetic motor market segments offset lower volumes in the hermetic, pump, and home appliance market segments. Operating profit of $12.7 million was $4 million higher than the third quarter of 2006 which included higher restructuring expense of $2.5 million. Third quarter operating profit margin was 5.8%.

   

Back to Daily News

 

Daily News

...........................................................

Oct 30, 2014: Whirlpool Corp. reports strong third-quarter

Oct 30, 2014: Statistical Portrait of the European Appliance Industry Released by Appliance Magazine

Oct 30, 2014: New Whirlpool acquisition Indesit reports profit for year so far

Oct 30, 2014: Consumer Confidence Index rebounds in October

Oct 29, 2014: New home sales up slightly in September 2014

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows