A. O. Smith Corp. announces financial results.MILWAUKEE--(BUSINESS WIRE)--April 11, 1996--A. O. Smith Corporation (AOS-NYSE) today announced first quarter 1996 net earnings of $17.3 million or $.83 per share, a 5.5 percent decline from the same period last year. These earnings are in line with estimates previously issued by the corporation. First quarter revenues increased to $427 million compared with first quarter 1995 revenues of $393 million. "Despite the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. difficulties we encountered this quarter, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about this year," Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. O'Toole Noun 1. O'Toole - British actor (born in Ireland in 1932) Peter O'Toole, Peter Seamus O'Toole Emerald Isle, Hibernia, Ireland - an island comprising the republic of Ireland and Northern Ireland , chairman and chief executive officer, pointed out. "Certainly last week's dividend increase is evidence of that confidence." At the April 4 Board of Director's meeting, the corporation announced a 13 percent increase in the quarterly cash dividend to $.17 per share. The dividend will be payable May 15 to shareholders of record April 30. First quarter difficulties centered on two operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , Automotive Products Company and Water Products Company. Automotive Products' first quarter profits were impacted by the General Motors strike in March, as well as costs associated with the start-up Start-up The earliest stage of a new business venture. of three new facilities, O'Toole said. Productivity improved throughout the operation in the first quarter, but the increase was lower than expected, he observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. . Water Products Company's first quarter profits were lower than the same period last year, due to pricing pressure in the residential water heater segment. "It appears that the pricing issue will extend into the second quarter, but we are optimistic that we will experience a return to more normal margins in the second half of the year." O'Toole commented. Water Products first quarter sales were $69.4 million, compared with sales of $64.1 million in the first quarter of 1995. The problems overshadowed the strong first quarter performance of Electrical Products Company, Peabody Peabody (pē`bədē, –bädē), city (1990 pop. 47,039), Essex co., NE Mass., a suburb of Boston, on the Danvers River; settled c.1633, inc. as South Danvers 1855, name changed 1868. TecTank (the corporation's new storage tank subsidiary), and its Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum automotive affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. . Electrical Products Company's first quarter sales were eight percent higher than the same period of 1995, resulting in higher profits. "The sales increase was the result of strong demand for HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free products from both new and existing customers, in both the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and distribution segments of our business," O'Toole said. "Higher volume and improved efficiency throughout the company's operations accounted for the increased profits." Sales of A. O. Smith Harvestore Products and the newly acquired Peabody TecTank (PTT (1) (Postal, Telegraph & Telephone) The governmental agency responsible for combined postal, telegraph and telephone services in many European countries. (2) See push-to-talk. PTT - Post, Telephone and Telegraph administration ) were $20.5 million in the first quarter. The addition of PTT helped that segment of the corporation's business earn a first quarter profit, compared with a loss in the first quarter of 1995. First quarter sales of the Smith Fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. Products subsidiary were slightly lower than the same period in 1995. The lower volume and unfavorable product mix resulted in a significant decline from 1995 first quarter earnings. -0-
A.O. Smith Corporation and Subsidiaries
(Unaudited condensed consolidated financial statements -
$000 omitted except per share data)
Statement of Earnings
Three months ended
March 31
1996 1995
Electrical Products Co. $ 92,301 $ 85,256
Automotive Products Co. 230,938 221,669
Water Products Co. 69,362 64,080
Smith Fiberglass Products Inc. 13,450 13,717
Other Products 20,939 8,266
_______ _______
Net Revenues 426,990 392,988
Cost and Expenses
Cost of Products Sold 363,121 328,845
Selling, General and
Administrative 32,944 28,962
Interest Expense - Net 3,942 3,216
Other Expense 1,383 1,984
Tax Provision 10,189 11,406
_______ _______
Total cost and expenses 411,579 374,413
Earnings Before Minority Interests
and Equity in Affiliates 15,411 18,575
Equity in Earnings/(Loss)
of Affiliates 1,800 (214)
Minority Interests 131 -
_______ _______
Net Earnings $ 17,342 $ 18,361
_______ _______
_______ _______
Net Earnings Per Common Share $0.83 $0.88 Average Common Shares Outstanding 20,918,621 20,909,348
A.O. Smith Corporation
Balance Sheet
March 31 December 31
1996 1995
ASSETS:
Cash and cash equivalents $ 4,171 $ 5,694
Trade Receivables 188,229 165,924
Finance subsidiary
receivables and leases 12,687 13,449
Customer Tooling 51,045 30,799
Inventories 113,314 103,540
Deferred Income Taxes 18,124 17,542
Other Current Assets 15,738 15,537
______ _______
Total Current Assets 403,308 352,485
Net property, plant and
equipment 459,292 447,355
Investments in and
advances to affiliated
companies 21,179 21,577
Deferred model change 27,106 25,246
Finance Subsidiary
Receivables and leases 24,419 26,950
Other Assets 82,623 79,305
______ ______
Total Assets $ 1,017,927 $ 952,918
_________ _______
_________ _______
LIABILITIES AND STOCKHOLDERS' EQUITY:
Trade payables $ 138,045 $ 112,645
Accrued payroll
and benefits 39,939 47,763
Postretirement benefit
obligation 7,806 7,837
Long-term debt due
within one year 3,975 3,925
Finance subsidiary long-
term debt due within
one year 1,012 1,008
Other Current Liabilities 39,606 40,469
_______ _______
Total Current Liabilities 230,383 213,647
Long-term debt 195,698 167,139
Finance subsidiary long-
term debt 20,688 23,799
Other liabilities 33,113 31,955
Deferred income taxes 64,458 63,239
Postretirement benefit
obligation 75,085 74,799
Minority interests in
joint ventures 12,254 5,976
Stockholders' equity 386,248 372,364
_______ _______
Total Liability and
Stockholders' Equity $ 1,017,927 $ 952,918
________ _______
________ _______
CONTACT: A. O. Smith Corporation, Milwaukee Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide J. O'Connor O'Con·nor , Flannery 1925-1964. American writer whose novels Wise Blood (1952) and The Violent Bear It Away (1960) and short stories, collected in such works as A Good Man Is Hard to Find , 414/359-4100 |
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