A. O. Smith Corp. (AOS, Financial) filed Quarterly Report for the period ended 2010-03-31.
A. O. Smith Corp. has a market cap of $1.56 billion; its shares were traded at around $51.45 with a P/E ratio of 14.6 and P/S ratio of 0.8. The dividend yield of A. O. Smith Corp. stocks is 1.5%. A. O. Smith Corp. had an annual average earning growth of 5.7% over the past 10 years.AOS is in the portfolios of Chuck Royce of Royce& Associates, John Buckingham of Al Frank Asset Management, Inc., Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
The primary impact of the SICO transaction is in the calculation of earnings per share because the accounting rules require the use of SICO adjusted average shares outstanding prior to closing. The 2010 first quarter earnings and per share amounts are unaffected by the SICO transaction. Eliminating the impact of the transaction as set forth in the table on the following page, non-GAAP net earnings were $8.7 million or $0.29 per diluted share in the first quarter of 2009 and compared to the previously mentioned net earnings of $30.9 million or $1.01 per share in the first quarter of 2010.
First quarter net sales for our Water Products segment were $366.7 million or $27.7 million higher than sales of $339.0 million in the same period last year. The sales increase was due to significantly higher sales in China and increased sales in Canada.
First quarter net sales for our Electrical Products segment were $157.8 million or $14.2 million higher than sales of $143.6 million in the same period last year. The increase in sales resulted from higher global demand for motors and the restocking of depleted inventories by our North American customers in anticipation of the summer selling season.
Our working capital, excluding short-term debt, was $322.2 million at March 31, 2010, $73.5 million greater than at December 31, 2009, due to higher accounts receivable and inventory levels related primarily to higher volumes at Electrical Products. Cash used by operating activities during the first quarter of 2010 was $12.6 million compared with $3.2 million cash provided by operating activities during the first quarter of 2009. A larger investment in working capital needed to support increases in sales during the first quarter of 2010 compared with the same period in 2009 was partially offset by higher earnings in the first quarter of this year compared with the first quarter 2009. For the total year 2010, we expect cash provided by operating activities to be approximately $115 to $125 million.
Our capital expenditures totaled $10.3 million during the first quarter of 2010, compared with $12.5 million one year ago. We are projecting 2010 capital expenditures to be between $65 and $75 million and 2010 depreciation and amortization of approximately $70 million.
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A. O. Smith Corp. has a market cap of $1.56 billion; its shares were traded at around $51.45 with a P/E ratio of 14.6 and P/S ratio of 0.8. The dividend yield of A. O. Smith Corp. stocks is 1.5%. A. O. Smith Corp. had an annual average earning growth of 5.7% over the past 10 years.AOS is in the portfolios of Chuck Royce of Royce& Associates, John Buckingham of Al Frank Asset Management, Inc., Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net earnings for the first quarter of 2010 were $30.9 million or $1.01 per diluted share, establishing a first quarter earnings record, and compared to reported net earnings of $2.7 million or $0.28 per diluted share in the first quarter of 2009. Our reported earnings per share under GAAP for 2009 have been impacted by required accounting related to the companys transaction with Smith Investment Company (SICO), which closed on April 22, 2009 and is discussed in more detail in Note 1 of the Notes to Condensed Consolidated Financial Statements. For accounting purposes, the former controlling shareholder, SICO, is treated as the acquirer even though A. O. Smith Corporation (the company) is the surviving corporation from a legal standpoint. 2009 earnings and earnings per share amounts reported by the company include SICO earnings and shares outstanding as adjusted for the exchange ratio of the merger.The primary impact of the SICO transaction is in the calculation of earnings per share because the accounting rules require the use of SICO adjusted average shares outstanding prior to closing. The 2010 first quarter earnings and per share amounts are unaffected by the SICO transaction. Eliminating the impact of the transaction as set forth in the table on the following page, non-GAAP net earnings were $8.7 million or $0.29 per diluted share in the first quarter of 2009 and compared to the previously mentioned net earnings of $30.9 million or $1.01 per share in the first quarter of 2010.
First quarter net sales for our Water Products segment were $366.7 million or $27.7 million higher than sales of $339.0 million in the same period last year. The sales increase was due to significantly higher sales in China and increased sales in Canada.
First quarter net sales for our Electrical Products segment were $157.8 million or $14.2 million higher than sales of $143.6 million in the same period last year. The increase in sales resulted from higher global demand for motors and the restocking of depleted inventories by our North American customers in anticipation of the summer selling season.
Our working capital, excluding short-term debt, was $322.2 million at March 31, 2010, $73.5 million greater than at December 31, 2009, due to higher accounts receivable and inventory levels related primarily to higher volumes at Electrical Products. Cash used by operating activities during the first quarter of 2010 was $12.6 million compared with $3.2 million cash provided by operating activities during the first quarter of 2009. A larger investment in working capital needed to support increases in sales during the first quarter of 2010 compared with the same period in 2009 was partially offset by higher earnings in the first quarter of this year compared with the first quarter 2009. For the total year 2010, we expect cash provided by operating activities to be approximately $115 to $125 million.
Our capital expenditures totaled $10.3 million during the first quarter of 2010, compared with $12.5 million one year ago. We are projecting 2010 capital expenditures to be between $65 and $75 million and 2010 depreciation and amortization of approximately $70 million.
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