Milwaukee-based A.O. Smith Corp. today reported fourth quarter net earnings of $42.4 million, or 46 cents per share, up from $39.3 million, or 46 cents per share, in the fourth quarter of 2012.
Revenue was $558.9 million, up from $524.3 million at the same time a year ago.
For the full year, A.O. Smith reported net earnings of $169.7 million, or $1.83 per share, up from $158.7 million, or $1.75 per share, in 2012.
Yearly revenue was $2.2 billion, up 11 percent from $1.9 billion in 2012. Sales increases were driven by a 26 percent growth of branded products sales in China.
“The year 2013 was an excellent one for A. O. Smith,” said Ajita Rajendra, president and chief executive officer. “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.
“Our A. O. Smith branded business in China continued to grow significantly faster than that country’s GDP thanks to our outstanding reputation in that market as a supplier of high quality, innovative products.”
Rajendra reaffirmed that the company has cash on hand and is looking for acquisitions that will increase shareholder value.
In 2014, the company expects higher volumes and incremental savings from plant consolidations in North America, but a $10 million cost for the implementation of a new enterprise resource planning system and a higher tax rate.
“Strong performance in our North America segment in 2013 prompted us to update our 2015 aspirations,” Rajendra said. “Our North America segment adjusted operating margin aspiration is now approximately 16 percent, compared with the previously disclosed 15.5 percent. Our aspiration for organic sales for the total company is over $2.5 billion by 2015, and our adjusted earnings aspiration for our existing portfolio of businesses is now $2.50 per share by 2015 versus the previously disclosed $2.25 per share.”
