A. O. Smith Increases Earnings Expectations for 2010

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Mar 23, 2010, 06:30 ET

MILWAUKEE, March 23 /PRNewswire-FirstCall/ -- A. O. Smith Corporation (NYSE: AOS) today announced that it expects to significantly exceed analysts' first quarter earnings estimates. The company projects its first quarter results will be between $.95 and $1.00 per share.

"Both of our business segments are experiencing higher sales volumes than we originally expected," commented Chairman and Chief Executive Officer Paul W. Jones. "In addition, the results of our extensive cost reduction efforts and continuing strength in water heater sales in China will benefit the first quarter."

The company increased its full-year earnings forecast to $3.20 and $3.40 per share and intends to release its first quarter 2010 results before the market opens on April 20.

Forward-looking statements

This release contains statements that the company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "forecast," "guidance" or words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Factors that could cause such a variance include the following: significant volatility in raw material prices; competitive pressures on the company's businesses; inability to implement pricing actions; negative impact of future pension contributions on the company's ability to generate cash flow; instability in the company's electric motor and water products markets; further weakening in housing construction; further weakening in commercial construction; timing of any recoveries in housing or commercial construction; a slowdown in the Chinese economy; further adverse changes in customer liquidity and general economic and capital market conditions; the impact of acquisition accounting or non-GAAP financial measures on the company's financial statements; or difficulties in integrating the China acquisition, and realizing future growth and profit expectations. Forward-looking statements included in this press release are made only as of the date of this release, and the company is under no obligation to update these statements to reflect subsequent events or circumstances. All subsequent written and oral forward-looking statements attributed to the company, or persons acting on its behalf, are qualified entirely by these cautionary statements.

A. O. Smith Corporation, with 2009 sales of $2.0 billion, is a global leader applying innovative technology and energy-efficient solutions to products marketed worldwide. The company is one of the world's leading manufacturers of residential and commercial water heating equipment, offering a comprehensive product line featuring the best-known brands in North America and China. A. O. Smith is also one of the largest manufacturers of electric motors for residential and commercial applications in North America.

SOURCE A. O. Smith Corporation