A. O. Smith’s first quarter: double-digit earnings growth, record sales
Water treatment company A. O. Smith gave investors cause for celebration at the end of April, reporting adjusted net earnings of $103.8 million for the first quarter of the year, or 60¢ per share. That’s a year-on-year increase of 18%, and it all comes down to the company’s record sales, which were up by 6.5% from the previous year.
A. O. Smith’s share price has risen by 16% over the past 12 months
SOURCE: Yahoo Finance
Earlier in April, the company was named “primary supplier of water treatment products” to all of Lowe’s home improvement stores in the U.S. The company is moving into Lowe’s “beginning in August” and expects to see sales of $15 million. The start-up and transition costs it expects to incur in the move are described as a “small loss”.
The company’s chairman and CEO, Ajita Rajendra, said: "The key fundamentals of our business: organic growth, stable replacement demand, innovation and new products with features and benefits that consumers want and can afford continued to remain in place. We are pleased to deliver solid performance in the face of higher costs, particularly higher steel prices. We established a noteworthy start to 2018."
"The new business at Lowe's underscores our strong relationship with this important customer and represents our ability to accelerate growth of our North American water treatment product line.”
Dominion holds A. O. Smith in its Global Trends Managed Fund.
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