A. O. Smith Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in net sales and profitability compared to the previous fiscal period. For Q3 2024, net sales totaled $902.6 million, a decrease of 3.7% from $937.5 million in Q3 2023. The decline was primarily attributed to lower sales in China and reduced volumes of residential and commercial water heaters in North America. However, for the nine months ended September 30, 2024, net sales increased by 1.4% to $2,905.7 million, driven by pricing actions and higher sales of water heaters and boilers.
Gross profit for Q3 2024 was $337.3 million, down from $356.2 million in the same quarter of 2023, resulting in a gross profit margin of 37.4%, slightly lower than the 38.0% margin in Q3 2023. The company reported net earnings of $120.1 million for Q3 2024, down from $135.4 million in Q3 2023, with diluted earnings per share (EPS) of $0.82 compared to $0.90 in the prior year. For the nine-month period, net earnings rose to $423.9 million from $419.3 million, with diluted EPS increasing to $2.87 from $2.77.
The North America segment reported net sales of $703.3 million for Q3 2024, a slight decrease from $709.9 million in Q3 2023. The segment's earnings also fell to $162.5 million from $170.0 million year-over-year. In contrast, the Rest of World segment experienced a more significant decline, with Q3 2024 sales of $210.3 million, down from $233.4 million in Q3 2023, and segment earnings dropping to $13.6 million from $23.2 million.
Strategically, A. O. Smith has been active in acquisitions, signing an agreement to acquire Pureit, a residential water purification business, for approximately $120 million, expected to close by the end of 2024. This acquisition aims to enhance market penetration in South Asia. Additionally, the company has made previous acquisitions in the water treatment sector to expand its North American footprint.
As of September 30, 2024, total current assets decreased to $1,412.5 million from $1,500.3 million at the end of 2023, while total liabilities also decreased to $1,237.5 million from $1,369.5 million. The company reported total stockholders’ equity of $1,916.7 million, up from $1,844.4 million at the end of 2023. Cash provided by operating activities for the nine months ended September 30, 2024, was $359.9 million, down from $439.0 million in the same period of 2023.
About SMITH A O CORP
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