A.O. Smith lifts annual profit forecast, considers China partnership
"We believe the China market has substantial long-term prospects and are committed to realizing the potential upside inherent in the company's China business for our company," CEO Steve Shafer said.
The Milwaukee, Wisconsin-based company is banking on higher market share in the second half of the year and cost savings from its restructuring actions.
It now expects annual adjusted earnings per share to be in the range of $3.70 to $3.90, compared with its previous forecast of $3.60 to $3.90.
Analysts on an average expected $3.78 per share for 2025, according to data compiled by LSEG.
But second quarter revenue fell about 1% from a year ago to $1.01 billion.
Sales from other parts of the world, including China and India, also fell nearly 2% to $240.1 million.
Net income for the quarter ended June 30 was $152.2 million billion, or $1.07 per share, compared with $156.2 million, or $1.06 per share, a year earlier.
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