Milwaukee-based A.O. Smith Corp. continued its strong fiscal performance reporting records for both revenue and profits in the second quarter.
Net income was up 22.5 percent to $87.1 million and earnings reached 98 cents per diluted share, up from 78 cents last year. The earnings figure beat analyst estimates by 8 cents, according to SeekingAlpha.
Revenue was up 2.1 percent to $667 million, but the figure fell short of estimates by $27.9 million.
Ajita Rajendra, A.O. Smith chairman and chief executive officer, said the company’s earnings growth was the result of solid execution in North America and China. Increased sales of water heating and water treatment products in China pushed revenue there up by 16 percent in local currency, he said.
“We’ve had a record quarter once again thanks to our premium consumer product business in China, as well as our strong financial performance in North America. Our positive organic revenue growth continues to differentiate us from other U.S. industrial companies,” Rajendra said.
Sales in the North America segment were down roughly 2 percent. The company said the decline was due to lower volumes of residential water heaters in the U.S. The decline was offset by higher prices implemented in April 2015 related to a U.S. regulatory change.
