A.O. Smith Corp. today reported record fourth-quarter earnings of $16.0 million, or 52 cents per share, up from $4.4 million, or 15 cents per share, in the same period a year ago. For the full year, the Wauwatosa-based manufacturer of electric motors reported earnings of $ 46.5 million, up from $35.4 million in the previous year.
“The company made notable progress during 2005 in achieving improved profitability,” chairman and chief executive officer Paul Jones said.
“The water systems unit significantly improved its performance in 2005 with record operating earnings and a full-year operating margin of almost 10 percent.
Electrical products has taken significant actions to improve profitability with its repositioning program and is in a position to make further improvements this year.
“While material and energy costs remained high throughout 2005, improved pricing, logistics management, and efficiency throughout our operations offset the higher costs,” Jones said.
“Two other bright spots during 2005 were the company’s generation of $188 million in operating cash flow and the continued strength at our Chinese water heater operation which recorded a 45 percent increase in sales.”
