Core Insights - A. O. Smith Corporation reported a decline in net sales and earnings for the full year and fourth quarter of 2024, primarily due to weak consumer demand in China and soft water heater demand in North America [1][2][3] - The company faced challenges with restructuring and impairment expenses, impacting earnings per share [2][3] - Despite these challenges, A. O. Smith remains focused on optimizing its business and investing for future growth, including the acquisition of Pureit [2][3] Financial Performance - Full Year 2024: - Net sales decreased by 1% to 3,818millionfrom3,853 million in 2023 [2] - Net earnings fell by 4% to 533.6million,withdilutedearningspersharedown23.63 [2][3] - Adjusted earnings also decreased by 5% to 548.0million,withadjustedearningspershareat3.73 [2][3] - Fourth Quarter 2024: - Net sales were 912.4million,an8988.1 million in Q4 2023 [2] - Net earnings dropped by 20% to 109.7million,withdilutedearningspersharedown180.75 [2][3] - Adjusted earnings for the quarter were 124.1million,a14144.4 million in Q4 2023 [2][3] Segment Performance - North America: - Full year sales were 3.8billion,adecreaseof1707.5 million with a margin of 24.0%, down from 726.7millionand24.9918.6 million, impacted by unfavorable currency translation and lower volumes in China [8][9] - Segment earnings fell to 64.5millionwithamarginof7.083.4 million and 8.7% in 2023 [9] Balance Sheet and Capital Allocation - As of December 31, 2024, cash and marketable securities totaled 276.1million,withtotaldebtat193.2 million [12] - The company returned 496milliontoshareholdersthroughdividendsandsharerepurchasesin2024[3][13]−A.O.Smithrepurchased3.8millionsharesatacostof305.8 million, with plans to increase repurchases to approximately 400millionin2025[13][17]2025Outlook−Thecompanyprojectsflatto23.60 and $3.90 [16][17] - Anticipated challenges include a single-digit sales decline in China and flat water heater industry unit volumes in North America [16][17]
A. O. Smith(AOS) Prnewswire·2025-01-30 11:55