Water heater and electric motor maker A.O. Smith (NYSE:AOS) posted better-than-expected fourth quarter sales spurred by acquisitions and organic growth, despite reporting flat profits, the company said Friday.
Revenue grew 29 percent to $475 million from $370 million thanks to higher water heater sales in North America and its acquisition of water boiler maker Lochinvar.
For the fourth quarter ended December 31, A.O. Smith posted net income of $32.1 million, or 69 cents per share, compared to a year-ago profit of $32.2 million, or 69 cents per share.
Excluding discontinued operations, the company earned $31.5 million, or 68 cents per share, up from $20.5 million, or 44 cents per share.
The results topped Bloomberg analyst predictions for earnings of 64 cents apiece, on revenue of $460 million.
A.O. Smith's chief executive Paul W. Jones, said: "Our acquisition of Lochinvar is achieving all that we expected, our growth in China continued at the high end of our expectations, and we are delighted with the acceptance of our products and growth in India.
"As a result, we were able to overcome global economic headwinds to achieve record earnings from continuing operations for the fifth time in the last six years."
Sales of A.O. Smith branded products in China grew over 30 percent from the previous year. While higher residential volumes and the pre-buy of commercial water heaters in the U.S. also aided to the sales increase.
The company expects to post a 2012 profit of $2.65 to $2.85 per share, with Lochinvar contributing between 40 cents and 50 cents per share. Analysts polled by FactSet expect profits of $2.82 a share.
A. O. Smith, headquartered in Milwaukee employs approximately 10,500 people at operations in the US, Canada, Mexico, India, China, and the Netherlands.
Shares rose 4.21 percent to $43.31 apiece Friday afternoon on the Nasdaq.
A.O. Smith Q4 sales up 24% but profits flat
Last updated: 13:16 27 Jan 2012 EST, First published: 14:16 27 Jan 2012 EST