The crisis for the U.S. manufacturing sector is far from over but the picture is finally looking brighter as activity shows signs of expansion. Manufacturing activity contracted in 2023, but the pace slowed as the year came to a close.The Institute for Supply Management’s (ISM) manufacturing PMI rose to 47.4 in December after remaining unchanged in the prior two months at 46.7. Also, December’s growth in manufacturing activity came in higher than economists’ expectations of 47.1.Although any reading below 5 ...

MILWAUKEE, Jan. 16, 2024 /PRNewswire/ -- On Tuesday, January 16, 2024, the board of directors of A. O. Smith Corporation (NYSE: AOS) declared a regular quarterly cash dividend of $0.32 per share. The dividend increase affects the company's Common Stock and Class A Common Stock.The dividend is payable on Thursday, February 15 to shareholders of record January 31, 2024. A. O. Smith Announces Quarterly Dividend Post this About A. O. SmithCelebrating its 150th year of business, A. O. Smith Corporation, head ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider A.O. Smith (AOS) . This company, which is in the Zacks Manufacturing - Electronics industry, shows potential for another earnings beat.This maker of water heaters and boilers has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for ...

The struggle continues for the U.S. manufacturing sector, but the picture is finally looking brighter with the sector making a solid effort to stage a rebound. Cooling inflation is once again driving demand that has seen orders at U.S. factories picking up lately.New orders for U.S.-made factory goods increased 2.6% in November, surpassing economists’ expectations of a rise of 2.1%, the Census Bureau said on Jan 5. The rebound came after a 3.4% decline in October.Year over year, factory orders increased 0.7 ...

North America Segment Performance - North America segment sales increased by $57.0 million in Q3 2023 compared to Q3 2022, driven by higher residential water heater volumes[91] - North America segment earnings rose 19.9% in Q3 2023 to $170.0 million, with segment margins improving to 23.9%[91] - North America segment earnings for Q3 2023 were $170.0 million, a 19.9% increase from $141.8 million in Q3 2022[104] - North America water treatment product sales are anticipated to grow 5-7% in 2023, primarily driven by pricing[87] - Commercial water heater industry volumes in 2023 are expected to increase mid-teens compared to 2022[87] - Boiler sales in North America decreased 11% in the first nine months of 2023, with a revised outlook of a high single-digit decrease for the full year[87] - The company recorded pre-tax pension settlement income of $5.0 million in the North America segment and $1.0 million in Corporate expenses[109] - The company incurred pre-tax pension settlement expense of $346.8 million in the North America segment and $70.5 million in Corporate expenses[109] - The company reported pre-tax pension expense of $9.7 million in the North America segment and $2.0 million in Corporate expenses[109] Rest of World Segment Performance - Rest of World segment sales in Q3 2023 were $233.4 million, up $3.2 million (1.4%) compared to $230.2 million in Q3 2022, driven by higher volumes in China, partially offset by $11 million unfavorable foreign currency translation[93] - Rest of World segment earnings in Q3 2023 were $23.2 million, up from $21.8 million in Q3 2022, with segment margins improving to 9.9% from 9.5%[93] - Adjusted Rest of World segment earnings for the first nine months of 2023 were $69.3 million, with an adjusted segment margin of 9.9%, excluding a $12.5 million impairment expense[93] - Rest of World segment earnings for Q3 2023 were $23.2 million, a 6.4% increase from $21.8 million in Q3 2022[104] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses[109] Financial Performance and Projections - Company-wide gross profit margin increased to 38.0% in Q3 2023 from 34.9% in Q3 2022, primarily due to lower material costs[89] - The company expects 2023 consolidated sales to increase by 2% compared to 2022, excluding potential future acquisitions[87] - The company expects 2023 consolidated sales to increase by 2% compared to 2022, driven by a 4% increase in residential unit volumes, higher commercial water heater volumes, and increased water treatment sales[94] - Adjusted earnings for the first nine months of 2023 were $430.4 million, compared to $357.1 million in the same period last year, with adjusted EPS of $2.84 versus $2.28 in 2022[101] - Earnings Before Provision for Income Taxes (GAAP) for Q3 2023 was $176.4 million, compared to $144.7 million in Q3 2022, representing a 21.9% increase[104] - Total Segment Earnings (non-GAAP) for Q3 2023 was $193.2 million, up 18.1% from $163.6 million in Q3 2022[104] - Adjusted EPS guidance for 2023 is $3.70 to $3.80, compared to 2022 adjusted EPS of $3.14[108] Cash Flow and Debt Management - Cash provided by operating activities in the first nine months of 2023 was $439.0 million, up from $214.7 million in the same period last year, with free cash flow of $396.3 million compared to $163.8 million in 2022[97] - The company expects 2023 cash provided by operating activities to be between $640 million and $665 million, with free cash flow projected between $575 million and $600 million[97] - Total debt decreased by $214.9 million in the first nine months of 2023, with the leverage ratio improving to 6.4% from 16.5% at the end of 2022[97] - Free cash flow (non-GAAP) for the first nine months of 2023 was $396.3 million, a 141.9% increase from $163.8 million in the same period of 2022[107] Share Repurchases and Tax Rates - The company repurchased 2,388,000 shares in the first nine months of 2023 at a total cost of $161.4 million, with plans to spend approximately $300 million on stock repurchases in 2023[97] - Effective income tax rate for the nine months ended September 30, 2023 was 24.7%, with an estimated annual rate of approximately 24% for 2023[89] China Market and Currency Impact - Sales in China are projected to grow 3-5% in 2023 in local currency, but currency translation is expected to negatively impact sales by approximately 6%[87] Impairment and Pension Expenses - The company recognized a non-cash impairment charge of $15.6 million in Q1 2023 related to the sale of its business in Turkey[87] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses[109] - The company recorded pre-tax pension settlement income of $5.0 million in the North America segment and $1.0 million in Corporate expenses[109] - The company incurred pre-tax pension settlement expense of $346.8 million in the North America segment and $70.5 million in Corporate expenses[109] - The company reported pre-tax pension expense of $9.7 million in the North America segment and $2.0 million in Corporate expenses[109]

A. O. Smith Corporation (NYSE:AOS) Q3 2023 Results Conference Call October 26, 2023 10:00 AM ET Company Participants Helen Gurholt - VP, IR and Financial Planning & Analysis Kevin Wheeler - Chairman and CEO Chuck Lauber - CFO Conference Call Participants Saree Boroditsky - Jefferies Nathan Jones - Stifel Bryan Blair - Oppenheimer Susan Maklari - Goldman Sachs Andy Kaplowitz - Citigroup Matt Summerville - D.A. Davidson & Company Damian Karas - UBS Operator Welcome to the A. O. Smith’s Third Quarter 2023 Earn ...

Second Quarter 2023 Results Participants Kevin J. Wheeler Charles T. Lauber Helen E. Gurholt Chairman and Executive Vice President Vice President - Investor Relations, Chief Executive Officer and Chief Financial Officer Financial Planning & Analysis ...

A O Smith Corporation (NYSE:AOS) Q2 2023 Earnings Conference Call July 27, 2023 10:00 AM ET Company Participants Helen Gurholt - VP, IR and Financial Planning & Analysis Kevin Wheeler - Chairman, President, & CEO Charles Lauber - EVP & CFO Conference Call Participants Matt Summerville - D.A. Davidson & Co. Michael Halloran - Robert W. Baird & Co. Joseph Nolan - Longbow Research Adam Farley - Stifel, Nicolaus & Company Damian Karas - UBS Andrew Kaplowitz - Citigroup Jeffrey Hammond - KeyBanc Capital Markets ...

North America Segment Performance - North America segment sales in Q2 2023 were $722.3 million, a decrease of 2.9% compared to $744.1 million in Q2 2022, primarily due to lower boiler volumes and unfavorable pricing[90] - North America segment earnings in Q2 2023 increased by 24.5% to $199.1 million, driven by lower material costs and higher water heater volumes[90] - North America segment margin in Q2 2023 improved to 27.6%, up from 21.5% in Q2 2022[90] - North America segment earnings (non-GAAP) for Q2 2023 were $199.1 million, up 24.5% from $159.9 million in Q2 2022[102] - Adjusted North America segment earnings (non-GAAP) for the first six months of 2023 were $382.7 million, up 20.8% from $316.9 million in the same period of 2022[102] - North America water treatment product sales are expected to increase 5-7% in 2023, driven by pricing and consumer demand[86] - Pension settlement income for the first six months of 2023 included $5.0 million in the North America segment[107] Rest of World Segment Performance - Rest of World segment sales in Q2 2023 were $244.2 million, up $14.3 million (6.2%) compared to Q2 2022, driven by strong demand in China for water treatment products[91] - Rest of World segment earnings in Q2 2023 were $28.3 million, up 56.4% from $18.1 million in Q2 2022, with segment margin improving to 11.6% from 7.9%[91] - Adjusted Rest of World segment earnings for the first six months of 2023 were $46.1 million, with an adjusted segment margin of 10.0%, excluding a $12.5 million impairment expense[91] - Rest of World segment earnings (non-GAAP) for Q2 2023 grew to $28.3 million, a 56.4% increase from $18.1 million in Q2 2022[102] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment for the first six months of 2023[107] Consolidated Financial Performance - Consolidated sales in Q2 2023 were $960.8 million, a slight decrease of 0.5% compared to $965.9 million in Q2 2022[88] - Gross profit margin in Q2 2023 increased to 40.0%, up from 34.6% in Q2 2022, primarily due to lower material costs[88] - The company expects 2023 consolidated sales to be approximately flat to up 2% compared to 2022, excluding potential future acquisitions[86] - The company expects 2023 consolidated sales to be flat to up 2% compared to 2022, with full-year adjusted EPS guidance of $3.45 to $3.60[92] - Adjusted earnings for the first six months of 2023 were $295.0 million, up 17.8% from $250.5 million in the same period last year[99] - Adjusted EPS for the first six months of 2023 was $1.94, up 22.0% from $1.59 in the same period last year[99] - Earnings Before Provision for Income Taxes (GAAP) for Q2 2023 increased to $208.9 million, up from $165.3 million in Q2 2022, representing a 26.4% growth[102] - Total Segment Earnings (non-GAAP) for Q2 2023 reached $227.4 million, compared to $178.0 million in Q2 2022, a 27.8% increase[102] - Adjusted EPS guidance for 2023 is projected to be between $3.45 and $3.60, compared to the 2022 adjusted EPS of $3.14[107] Cash Flow and Debt Management - Cash provided by operating activities in the first six months of 2023 was $260.2 million, up 378.3% from $54.4 million in the same period last year[95] - The company expects 2023 free cash flow to be between $550 million and $600 million, with capital expenditures projected at $70 to $75 million[95] - Total debt decreased by $138.5 million in the first six months of 2023, with leverage ratio improving to 9.8% from 16.5% at the end of 2022[95] - The company repurchased 1,075,000 shares in the first six months of 2023 at a total cost of $69.6 million, with plans to spend approximately $300 million on stock repurchases in 2023[95] - Free cash flow (non-GAAP) for the first six months of 2023 was $236.0 million, a significant increase from $23.7 million in the same period of 2022[105] - The company's cash provided by operating activities (GAAP) for the first six months of 2023 was $260.2 million, compared to $54.4 million in the same period of 2022[105] Impairment and Tax Expenses - The company recognized a non-cash impairment charge of $15.6 million in Q1 2023 related to the sale of its business in Turkey[86] - The company's effective income tax rate for the six months ended June 30, 2023 was 25.3%, up from 23.6% in the same period last year[89] - The company reported a pre-tax impairment expense of $12.5 million in the Rest of World segment and $3.1 million in Corporate expenses for the first six months of 2023[107] - Pension settlement income for the first six months of 2023 included $1.0 million in Corporate expenses[107] China Market Outlook - In China, the company projects 2023 sales growth of 3-5% in local currency, but expects a negative currency translation impact of approximately 5%[86]

A. O. Smith Corporation (NYSE:AOS) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Helen Gurholt - Vice President, Investor Relations and Financial Planning and Analysis Kevin Wheeler - Chairman and CEO Chuck Lauber - Chief Financial Officer Conference Call Participants Michael Halloran - Baird Saree Boroditsky - Jefferies Susan Maklari - Goldman Sachs Matt Summerville - D.A. Davidson & Co. Damian Karas - UBS Andrew Kaplowitz - Citigroup Jeff Hammond - KeyBanc Capital Market ...