A. O. Smith earns $.90 per share in second quarter.MILWAUKEE--(BUSINESS WIRE)--July 11, 1996--A. O. Smith Corporation (AOS-NYSE, SMC-AMEX) second quarter revenues increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. seven percent over the same period last year to $429 million. Net earnings for the quarter ended June June: see month. 30 of $18.7 million or $.90 per share compared with 1995 second quarter earnings of $20 million or $.96 per share. The 1996 earnings are in line with security analyst estimates. Strong performance by the corporation's Electrical Products and 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 businesses was overshadowed by lower profits from Automotive Products, Water Products and 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. . Electrical Products' second quarter sales of $95.1 million were more than 12 percent higher than second quarter 1995 sales of $84.6 million. The unit, which manufactures fractional fractional size expressed as a relative part of a unit. fractional catabolic rate the percentage of an available pool of body component, e.g. protein, iron, which is replaced, transferred or lost per unit of time. horsepower horsepower, unit of power in the English system of units. It is equal to 33,000 foot-pounds per minute or 550 foot-pounds per second or approximately 746 watts. and hermetic hermetic /her·met·ic/ (her-met´ik) impervious to air. her·met·ic or her·met·i·cal adj. Completely sealed, especially against the escape or entry of air. electric motors, continues to experience strong demand in all of its major markets. The higher volume and increased productivity throughout its operations contributed to improved second quarter profits. Second quarter sales of A. O. Smith Harvestore Products and 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 nearly $24 million, despite lower demand in Harvestore's municipal and agricultural markets. Profits were higher than the second quarter of last year, due to the addition of the PTT business. Automotive Products Company's sales were basically the same as last year at $222 million, as a result of the second quarter shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the Dodge Dakota The Dakota is a mid-size pickup truck from the Chrysler Corporation's Dodge brand. It was introduced in 1987 alongside the redesigned Dodge Ram 50. The Dakota was nominated for the North American Truck of the Year award for 2000. frame line due to a model change-over as well as weak conditions in the medium/heavy truck market. Start-up Start-up The earliest stage of a new business venture. costs for three new plants in the U. S. contributed to lower second quarter profits. Water Products Company continued to feel the effects of pricing pressures in the residential water heater market throughout the second quarter. Consequently, second quarter profits were lower than the same period a year ago despite a nearly nine percent increase in sales to $72.7 million. We expect pricing to return to more normal levels for the remainder of the year. Second quarter sales of the Smith Fiberglass Products subsidiary were $14.8 million compared with sales of $15.6 million in the second quarter of 1995. Profits for the quarter were lower than the prior year, due to lower volume and unfavorable product mix. Continued strong earnings by Metalsa, A. O. Smith's 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. , helped offset expected losses associated with the corporation's start-up of new joint ventures in China. For the first six months of 1996, revenues were $855 million, compared with revenues of $793 million for the first six months of 1995. Six months' earnings were $36.1 million or $1.72 per share. For the same period in 1995, the corporation earned $38.4 million or $1.84 per share. A. O. Smith Corporation is a diversified diversified (di·verˑ·s manufacturer with headquarters in 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. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. . Its product lines include automotive structural components, fractional horsepower and hermetic electric motors, residential and commercial water heaters, fiberglass reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. piping systems, municipal, industrial, and agricultural storage structures. -0-
A.O. Smith Corporation and Subsidiaries
(unaudited condensed consolidated financial statements -
$000 omitted except per share data)
Statement of Earnings
Three months ended Six months ended
June 30 June 30
___________________ ____________________
1996 1995 1996 1995
_________ ________ _________ _________
Electrical Products
Company $ 95,067 $ 84,560 $ 187,368 $ 169,816
Automotive Products
Company 221,848 220,272 452,786 441,941
Water Products
Company 72,706 66,870 141,237 130,950
Smith Fiberglass
Products Inc. 14,810 15,600 28,260 29,317
Other Products 24,277 12,541 45,216 20,807
_________ ________ _________ _________
Net Revenues 428,708 399,843 854,867 792,831
Costs and Expenses
Cost of Products
Sold 361,844 335,535 724,109 664,380
Selling, General
& Administrative 32,737 29,315 65,270 58,277
Interest Expense - Net 3,545 3,349 7,397 6,565
Other Expense 2,022 1,147 3,394 3,131
Tax Provision 11,174 11,744 21,363 23,150
_________ ________ _________ _________
Total Costs and
Expenses 411,322 381,090 821,533 755,503
Earnings Before
Equity in Affiliates 17,386 18,753 33,334 37,328
Equity in Earnings
of Affiliates 1,346 1,272 2,740 1,058
_________ ________ _________ _________
Net Earnings $ 18,732 $ 20,025 $ 36,074 $ 38,386
_________ ________ _________ _________
_________ ________ _________ _________
Net Earnings Per
Common Share $ 0.90 $ 0.96 $ 1.72 $ 1.84
Average common shares outstanding 20,919,808 20,913,421 20,919,214 20,911,396
A.O. Smith Corporation
Balance Sheet
June 30 December 31
1996 1995(a)
___________ ___________
ASSETS:
Cash and cash
equivalents $ 4,240 $ 4,807
Trade receivables 178,649 165,924
Finance subsidiary
receivables & leases 11,920 13,449
Customer tooling 37,865 30,799
Inventories 99,806 103,413
Deferred income taxes 18,208 17,542
Other current assets 734 14,327
___________ ___________
Total current assets 365,422 350,261
Net property, plant
and equipment 485,123 436,534
Investments in and advances
to affiliated companies 37,101 28,731
Deferred model change 28,119 25,246
Finance subsidiary
receivables and leases 22,240 26,950
Other assets 78,540 79,220
___________ ___________
Total Assets $ 1,016,545 $ 946,942
___________ ___________
___________ ___________
LIABILITY AND STOCKHOLDERS' EQUITY:
Trade payables $ 148,728 $ 112,645
Accrued payroll and benefits 46,895 47,763
Postretirement benefit
obligation 7,774 7,837
Long-term debt due
within one year 5,175 3,925
Finance subsidiary long-
term debt due within one year 1,008 1,008
Other current liabilities 32,007 40,469
___________ ___________
Total Current Liabilities 241,587 213,647
Long-term debt 178,871 167,139
Finance subsidiary long-term
debt 19,353 23,799
Other liabilities 34,092 31,955
Deferred income taxes 65,797 63,239
Postretirement benefit
obligation 75,288 74,799
Stockholders' equity 401,557 372,364
___________ ___________
Total Liabilities and
Stockholders' Equity $ 1,016,545 $ 946,942
___________ ___________
___________ ___________
(a) Certain reclassifications have been made to conform
to the 1996 presentation.
CONTACT: A. O. Smith, Milwaukee 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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