MILWAUKEE, Jan. 28, 2021 /PRNewswire/ -- Global water
technology company A. O. Smith Corporation (the "Company") (NYSE:
AOS) today announced 2020 sales of $2.9
billion and net earnings of $344.9
million or $2.12 per
share.
Sales were approximately three percent lower than sales of
$3.0 billion reported in 2019, driven
primarily by pandemic-related sales declines in the first half of
2020 in China. Net earnings in
2019 were $370.0 million or
$2.22 per share.
Adjusted earnings of $351.2
million, or $2.16 per share,
were approximately five percent lower than 2019 net earnings and
excluded $6.3 million, or
$0.04 per share, of after-tax
severance and restructuring charges in 2020 related to aligning the
business to current market conditions.
Record sales of $834.5 million in
the fourth quarter of 2020 increased approximately 11 percent
compared with sales of $750.9 million
in the same period in 2019, primarily due to higher residential
water heater volumes in North
America and higher sales in China.
In the fourth quarter of 2020, the Company achieved net earnings
of $120.0 million, or $0.74 per share, which were approximately 31
percent higher than net earnings of $91.3
million, or $0.56 per share,
in the fourth quarter of 2019.
The Company is providing non-GAAP measures (adjusted earnings,
adjusted earnings per share and adjusted segment earnings) for 2020
that exclude severance and restructuring charges related to its
business alignment actions. Reconciliations to measures on a GAAP
basis are provided in the financial information included with this
news release.
"With the safety and well-being of our employees as the highest
priority, I'm extremely proud of our entire team supporting our
customers with essential water heating and water treatment products
to combat the pandemic in an indisputably challenging year. We
believe our strong balance sheet and the stability afforded by our
replacement demand in the U.S., which we estimate at approximately
85 percent of water heater and boiler units sold, put us in a solid
position to successfully navigate through the impact of the
pandemic," said Kevin J. Wheeler,
chairman and chief executive officer. "Our North America water
treatment sales organically grew 14 percent in 2020, and we believe
the U.S. residential industry shipped a record number of tank and
tankless water heaters in 2020, exceeding 10 million units. We saw
progressive improvement in consumer demand for our products in
China throughout 2020 and achieved
high single-digit operating margins in that region in the second
half of 2020."
North America
segment
Sales of the North
America segment in 2020 of $2.1
billion increased approximately two percent compared with
2019. Higher residential water heater volumes, growth in water
treatment, as well as a full year of Water-Right sales were
partially offset by lower U.S. commercial water heater volumes,
lower boiler sales and a water heater sales mix composed of more
electric models which have a lower selling price.
North America segment earnings
of $503.5 million increased
approximately three percent compared with 2019. The increase in
earnings was driven by the favorable impact to earnings from higher
residential water heater volumes, growth in water treatment sales,
a full year of Water-Right sales and lower material costs. The
negative impact to earnings from lower volumes of boilers and
commercial water heaters and the water heater mix skew to electric
partially offset these factors. The resulting segment margin of
23.8 percent was slightly higher than in 2019.
Adjusted segment earnings of $506.2
million excluded $2.7 million
in pre-tax severance costs resulting in adjusted segment margin of
23.9 percent.
Record fourth quarter North
America segment sales of $560.9
million increased approximately seven percent compared with
the same period in 2019, primarily driven by higher residential
water heater volumes.
Record fourth quarter North
America segment earnings of $137.9
million increased approximately seven percent from the same
period in 2019. The increase in earnings was primarily driven by
the favorable impact to earnings from higher residential water
heater volumes in North America
and lower steel costs. These factors were partially offset by
higher logistics costs. As a result, fourth quarter segment margin
of 24.6 percent was slightly higher than 24.5 percent in 2019.
Rest of World segment
Rest of World segment sales in
2020 of $800.3 million declined
approximately 14 percent from 2019. Pandemic-related lockdowns and
weak end-market demand, primarily in China in the first half of the year, and a
higher mix of mid-priced products resulted in lower sales. Currency
translation of China sales
favorably impacted sales by approximately $9
million. India sales were
also negatively impacted by the pandemic-related economic
disruption and declined to $31.0
million compared with $38.6
million in 2019.
Rest of World segment earnings at breakeven in 2020 declined
significantly compared with segment earnings of $40.2 million in 2019. In China, the unfavorable impact to earnings from
lower sales and a higher mix of mid-priced products, which have
lower margins than higher-priced products, more than offset
reductions in SG&A costs and temporary waivers for required
social insurance contributions. As a result of these factors,
segment operating margin was zero compared with 4.3 percent in
2019.
Adjusted segment earnings of $5.0
million in 2020 excluded $5.0
million in pre-tax severance and restructuring costs
resulting in adjusted segment margin of 0.6 percent.
Fourth quarter Rest of World segment sales of $279.0 million improved approximately 19 percent
compared with the fourth quarter of 2019. Currency translation of
China sales favorably impacted
sales by approximately $14 million.
Constant currency China sales
improved 15 percent driven by mid-single-digit growth in end market
demand led by water treatment, replacement water treatment filters
and gas tankless water heaters and a favorable mix between product
categories compared with the fourth quarter of 2019.
Fourth quarter Rest of World segment earnings of $31.3 million improved significantly from
$1.5 million in the same quarter in
2019. In China, the favorable
impact to earnings from higher volumes, reductions in SG&A
costs and lower material costs drove higher earnings. As a result
of these factors, fourth quarter segment margin improved to 11.2
percent compared with 0.6 percent in 2019.
Balance sheet, liquidity and share repurchases
As of
December 31, 2020, the Company had
cash and marketable securities balances totaling $689.6 million and undrawn borrowing capacity on
its credit facility totaling $500.0
million. The Company's total debt was $113.2 million at the end of December, and its
leverage ratio was 5.8 percent as measured by total debt to total
capitalization. During 2020, the Company repatriated approximately
$190 million in overseas cash to the
U.S.
Cash provided by operations of $562.1
million during 2020 increased from $456.2 million in 2019, primarily as a result of
lower investment in working capital which was partially offset by
lower earnings in 2020 compared with the prior year.
On January 27, 2021, the Board of
Directors of the Company approved adding 7,000,000 shares of common
stock to an existing discretionary share repurchase authority.
Including the additional shares, the Company has approximately 8.6
million shares available for repurchase. Today, the Company
announced its intention to spend approximately $400 million to repurchase its common stock in
2021 through a combination of 10b5-1 plans and open market
purchases.
Operations and supply chain
The Company remained
operational with no significant COVID-19-related disruptions within
its plants or supply chain in the recent quarter. Lead times were
extended in the second and third quarters due to self-quarantine
absenteeism mandated by the Company's COVID-19 prevention measures.
The Company noted stability in its North
America water heater manufacturing lead times in the fourth
quarter as a result of adding manufacturing shifts, hiring
temporary workers and shifting some production.
The Company has undertaken numerous and meaningful steps to
protect its employees, suppliers and customers during the pandemic.
These important steps, which in certain cases reduce efficiency,
include continuous communication and training to employees on
living and working safely during a pandemic, plant accommodations
and reconfigurations to maintain social distancing, providing masks
for all employees, implementation of sanitizing stations, employee
temperature-taking and regular, proactive deep cleaning and
sanitization of all facilities, among others.
Outlook
"We are encouraged by the resiliency of our North America water heater replacement demand
and the progressively improving year-over-year growth in consumer
demand for our products in China.
We continue to expect tailwinds behind our North America water treatment product sales
driven by drinking water health and safety concerns," noted
Wheeler. "However, much uncertainty remains about the duration and
long-term implications of the pandemic, particularly its impact on
the U.S. commercial construction market.
"Under the assumption that the conditions of our business
environment and those of our suppliers and customers are similar
throughout 2021 to what we have experienced in recent months and
that they do not deteriorate as a result of further restrictions or
shutdowns, today we announce our full-year 2021 earnings guidance
in a range between $2.40 and
$2.50 per share. The mid-point of the
guidance range represents an increase of 13 percent compared with
our 2020 adjusted earnings results.
"We continue to believe that we have ample liquidity and
flexibility to meet the needs of our business, return cash to
shareholders and take advantage of organic and acquisitive growth
opportunities. We remain focused on keeping our employees safe,
while serving our customers and continuing to deliver on our
mission to provide hot and clean water necessary to keep
communities and households safe during the pandemic."
A. O. Smith will broadcast a live conference call at
10:00 a.m. Eastern Standard Time
today. The call can be heard on the Company's website,
www.aosmith.com. An audio replay of the call will be available
on the Company's website after the live event.
Forward-looking statements
This release contains
statements that the Company believes are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally can be
identified by the use of words such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe," "forecast,"
"continue," "guidance" or words of similar meaning. All
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
anticipated as of the date of this release. Important factors that
could cause actual results to differ materially from these
expectations include, among other things, the following: negative
impacts to the Company's businesses, including demand for its
products, particularly commercial products, operations and
workforce dislocation and disruption, supply chain disruption and
liquidity as a result of the severity and duration of the COVID-19
pandemic; a failure to recover or a further weakening of the
Chinese economy and/or a failure to recover or a further decline in
the growth rate of consumer spending or housing sales in
China; negative impact to the
Company's businesses from international tariffs and trade disputes;
potential further weakening in the high-efficiency boiler segment
in the U.S.; significant volatility in raw material availability
and prices; inability of the Company to implement or maintain
pricing actions; a failure to recover or further weakening in U.S.
residential or commercial construction or instability in the
Company's replacement markets; foreign currency fluctuations; the
Company's inability to successfully integrate or achieve its
strategic objectives resulting from acquisitions; competitive
pressures on the Company's businesses; the impact of potential
information technology or data security breaches; changes in
government regulations or regulatory requirements; and adverse
developments in general economic, political and business conditions
in key regions of the world. Forward-looking statements included in
this news release are made only as of the date of this release, and
the Company is under no obligation to update these statements to
reflect subsequent events or circumstances. All subsequent
written and oral forward-looking statements attributed to the
Company, or persons acting on its behalf, are qualified entirely by
these cautionary statements.
About A. O. Smith
A. O. Smith Corporation, with
headquarters in Milwaukee, Wis.,
is a global leader applying innovative technology and
energy-efficient solutions to products manufactured and marketed
worldwide. Listed on the New York Stock Exchange (NYSE: AOS), the
Company is one of the world's leading manufacturers of residential
and commercial water heating equipment and boilers, as well as a
manufacturer of water treatment and air purification products. For
more information, visit www.aosmith.com.
A. O. SMITH
CORPORATION
|
Statement of
Earnings
|
(condensed
consolidated financial statements -
|
dollars in millions,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
834.5
|
|
$
|
750.9
|
|
$
|
2,895.3
|
|
$
|
2,992.7
|
Cost of products
sold
|
|
510.4
|
|
|
455.9
|
|
|
1,787.1
|
|
|
1,812.0
|
Gross
profit
|
|
324.1
|
|
|
295.0
|
|
|
1,108.2
|
|
|
1,180.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
171.2
|
|
|
179.9
|
|
|
660.3
|
|
|
715.6
|
Severance and
restructuring expenses
|
|
-
|
|
|
-
|
|
|
7.7
|
|
|
-
|
Interest
expense
|
|
1.0
|
|
|
2.5
|
|
|
7.3
|
|
|
11.0
|
Other
income
|
|
-
|
|
|
(2.9)
|
|
|
(11.0)
|
|
|
(18.0)
|
Earnings before
provision for income taxes
|
|
151.9
|
|
|
115.5
|
|
|
443.9
|
|
|
472.1
|
Provision for income
taxes
|
|
31.9
|
|
|
24.2
|
|
|
99.0
|
|
|
102.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
120.0
|
|
$
|
91.3
|
|
$
|
344.9
|
|
$
|
370.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share of common stock
|
$
|
0.74
|
|
$
|
0.56
|
|
$
|
2.12
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding (000's omitted)
|
|
162,866
|
|
|
164,185
|
|
|
162,604
|
|
|
166,711
|
A. O. SMITH
CORPORATION
|
Balance
Sheet
|
(dollars in
millions)
|
|
|
|
(unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
573.1
|
|
$
|
374.0
|
|
Marketable
securities
|
|
116.5
|
|
|
177.4
|
|
Receivables
|
|
585.0
|
|
|
589.5
|
|
Inventories
|
|
300.1
|
|
|
303.0
|
|
Other current
assets
|
|
43.3
|
|
|
56.5
|
|
|
|
|
|
|
|
|
Total
Current Assets
|
|
1,618.0
|
|
|
1,500.4
|
|
|
|
|
|
|
|
|
Net property, plant
and equipment
|
|
541.3
|
|
|
545.4
|
|
Goodwill and other
intangibles
|
|
870.7
|
|
|
884.4
|
|
Operating lease
assets
|
|
41.6
|
|
|
46.9
|
|
Other
assets
|
|
89.1
|
|
|
80.9
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
3,160.7
|
|
$
|
3,058.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
payables
|
$
|
595.2
|
|
$
|
509.6
|
|
Accrued payroll and
benefits
|
|
74.6
|
|
|
64.6
|
|
Accrued
liabilities
|
|
161.9
|
|
|
143.7
|
|
Product
warranties
|
|
47.8
|
|
|
41.8
|
|
Debt due within one
year
|
|
6.8
|
|
|
6.8
|
|
|
|
|
|
|
|
|
Total
Current Liabilities
|
|
886.3
|
|
|
766.5
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
106.4
|
|
|
277.2
|
|
Pension
liabilities
|
|
13.6
|
|
|
27.8
|
|
Operating lease
liabilities
|
|
34.4
|
|
|
38.7
|
|
Other
liabilities
|
|
271.7
|
|
|
281.0
|
|
Stockholders'
equity
|
|
1,848.3
|
|
|
1,666.8
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
3,160.7
|
|
$
|
3,058.0
|
A. O. SMITH
CORPORATION
|
Statement of Cash
Flows
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
2020
|
|
|
2019
|
Operating
Activities
|
|
|
|
|
|
|
Net
earnings
|
$
|
344.9
|
|
$
|
370.0
|
|
Adjustments to
reconcile net earnings
|
|
|
|
|
|
|
to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation &
amortization
|
|
80.0
|
|
|
78.3
|
|
|
Stock based
compensation expense
|
|
12.7
|
|
|
13.3
|
|
|
Net changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Current assets and liabilities
|
|
130.4
|
|
|
32.6
|
|
|
Noncurrent assets and liabilities
|
|
(5.9)
|
|
|
(38.0)
|
Cash Provided by
Operating Activities
|
|
562.1
|
|
|
456.2
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
(56.8)
|
|
|
(64.4)
|
|
Acquisition
|
|
-
|
|
|
(107.0)
|
|
Investment in
marketable securities
|
|
(157.4)
|
|
|
(272.7)
|
|
Net proceeds from
sale of marketable securities
|
|
226.0
|
|
|
478.0
|
Cash Provided by
Investing Activities
|
|
11.8
|
|
|
33.9
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
Long-term debt
(repaid) incurred
|
|
(170.8)
|
|
|
62.6
|
|
Common stock
repurchases
|
|
(56.7)
|
|
|
(287.7)
|
|
Payment of contingent
consideration
|
|
-
|
|
|
(1.0)
|
|
Net proceeds
(payments) from stock option activity
|
|
11.4
|
|
|
(0.5)
|
|
Dividends
paid
|
|
(158.7)
|
|
|
(149.2)
|
Cash Used In
Financing Activities
|
|
(374.8)
|
|
|
(375.8)
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
199.1
|
|
|
114.3
|
|
Cash and cash
equivalents - beginning of period
|
|
374.0
|
|
|
259.7
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
573.1
|
|
$
|
374.0
|
A. O. SMITH
CORPORATION
|
Business
Segments
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
$
|
560.9
|
$
|
523.1
|
|
$
|
2,118.3
|
$
|
2,083.5
|
|
Rest of
World
|
|
|
|
279.0
|
|
234.3
|
|
|
800.3
|
|
935.8
|
|
Inter-segment
sales
|
|
|
|
(5.4)
|
|
(6.5)
|
|
|
(23.3)
|
|
(26.6)
|
|
|
|
|
|
$
|
834.5
|
$
|
750.9
|
|
$
|
2,895.3
|
$
|
2,992.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America(1)
|
|
|
$
|
137.9
|
$
|
128.4
|
|
$
|
503.5
|
$
|
488.9
|
|
Rest of
World(2)
|
|
|
|
31.3
|
|
1.5
|
|
|
-
|
|
40.2
|
|
Inter-segment
earnings elimination
|
|
-
|
|
-
|
|
|
(0.3)
|
|
-
|
|
|
|
|
|
|
169.2
|
|
129.9
|
|
|
503.2
|
|
529.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
expense
|
|
|
|
(16.3)
|
|
(11.9)
|
|
|
(52.0)
|
|
(46.0)
|
Interest
expense
|
|
|
|
(1.0)
|
|
(2.5)
|
|
|
(7.3)
|
|
(11.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
151.9
|
|
115.5
|
|
|
443.9
|
|
472.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
provision
|
|
|
|
|
31.9
|
|
24.2
|
|
|
99.0
|
|
102.1
|
Net
earnings
|
|
|
|
$
|
120.0
|
$
|
91.3
|
|
$
|
344.9
|
$
|
370.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
includes severance
and restructuring expenses of:
|
$
|
-
|
$
|
-
|
|
$
|
2.7
|
$
|
-
|
(2)
|
includes severance
and restructuring expenses of:
|
$
|
-
|
$
|
-
|
|
$
|
5.0
|
$
|
-
|
A. O. SMITH
CORPORATION
|
Adjusted Earnings
and Adjusted EPS
|
(dollars in millions,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a
reconciliation of net earnings and diluted EPS to adjusted earnings
(non-GAAP) and adjusted EPS (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
(GAAP)
|
|
|
|
$
120.0
|
|
$
91.3
|
|
$
344.9
|
|
$
370.0
|
|
Severance and
restructuring expenses, before tax
|
|
-
|
|
-
|
|
7.7
|
|
-
|
|
Tax effect of
severance and restructuring expenses
|
|
-
|
|
-
|
|
(1.4)
|
|
-
|
|
Adjusted
Earnings
|
|
|
|
$
120.0
|
|
$
91.3
|
|
$
351.2
|
|
$
370.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
(GAAP)
|
|
|
|
$
0.74
|
|
$
0.56
|
|
$
2.12
|
|
$
2.22
|
|
Severance and
restructuring expenses per diluted share, before tax
|
-
|
|
-
|
|
0.05
|
|
-
|
|
Tax effect of
severance and restructuring expenses per diluted share
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Adjusted
EPS
|
|
|
|
$
0.74
|
|
$
0.56
|
|
$
2.16
|
|
$
2.22
|
|
A. O. SMITH
CORPORATION
|
Adjusted
Segment Earnings
|
(dollars in
millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
The following is a
reconciliation of reported segment earnings to adjusted segment
earnings (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Segment
Earnings (GAAP)
|
|
|
|
|
|
|
|
|
North America
|
|
$
137.9
|
|
$
128.4
|
|
$
503.5
|
|
$
488.9
|
Rest of World
|
|
31.3
|
|
1.5
|
|
-
|
|
40.2
|
Inter-segment earnings elimination
|
|
-
|
|
-
|
|
(0.3)
|
|
-
|
Total Segment
Earnings (GAAP)
|
|
$
169.2
|
|
$
129.9
|
|
$
503.2
|
|
$
529.1
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
North America severance and restructuring expenses
|
|
$
-
|
|
$
-
|
|
$
2.7
|
|
$
-
|
Rest of World severance and restructuring expenses
|
|
-
|
|
-
|
|
5.0
|
|
-
|
Inter-segment earnings elimination
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
Adjustments
|
|
$
-
|
|
$
-
|
|
$
7.7
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Segment Earnings
|
|
|
|
|
|
|
|
|
North America
|
|
$
137.9
|
|
$
128.4
|
|
$
506.2
|
|
$
488.9
|
Rest of World
|
|
31.3
|
|
1.5
|
|
5.0
|
|
40.2
|
Inter-segment earnings elimination
|
|
-
|
|
-
|
|
(0.3)
|
|
-
|
Total
Adjusted Segment Earnings
|
|
$
169.2
|
|
$
129.9
|
|
$
510.9
|
|
$
529.1
|
A. O. SMITH
CORPORATION
|
2021 EPS Guidance
and Adjusted 2020 EPS
|
(unaudited)
|
|
|
|
|
|
|
The following is a
reconciliation of diluted EPS to adjusted EPS (non-GAAP) (all items
are net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
Guidance
|
|
2020
|
|
|
|
|
|
|
Diluted EPS
(GAAP)
|
|
$ 2.40 -
2.50
|
|
$
2.12
|
|
Severance and
restructuring expenses, per diluted share
|
|
-
|
|
0.04
|
Adjusted
EPS
|
|
$ 2.40 -
2.50
|
|
$
2.16
|
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SOURCE A. O. Smith Corporation