Attached files
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| EX-99.1 - NEWS RELEASE OF A.O. SMITH CORPORATION, DATED APRIL 20, 2012 - SMITH A O CORP | d337880dex991.htm |
| 8-K - FORM 8-K - SMITH A O CORP | d337880d8k.htm |
Exhibit 99.2
A. O. SMITH CORPORATION
(condensed consolidated financial statements -
dollars in millions, except per share data)
Statement of Earnings
(unaudited)
| Three Months ended March 31 |
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| 2012 | 2011 | |||||||
| Net sales |
$ | 468.6 | $ | 417.4 | ||||
| Cost of products sold |
319.5 | 290.4 | ||||||
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| Gross profit |
149.1 | 127.0 | ||||||
| Selling, general and administrative |
105.3 | 89.3 | ||||||
| Interest expense |
3.0 | 1.8 | ||||||
| Other (income) expense |
(29.1 | ) | 2.2 | |||||
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| 69.9 | 33.7 | |||||||
| Provision for income taxes |
22.4 | 9.5 | ||||||
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| Earnings from continuing operations |
47.5 | 24.2 | ||||||
| Earnings from discontinued EPC operations, net of tax |
— | 16.8 | ||||||
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| Net earnings |
$ | 47.5 | $ | 41.0 | ||||
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| Diluted earnings per share of common stock |
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| Continuing operations |
$ | 1.02 | $ | 0.52 | ||||
| Discontinued operations |
— | 0.36 | ||||||
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| Net |
$ | 1.02 | $ | 0.88 | ||||
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| Average common shares outstanding (000's omitted) |
46,488 | 46,540 | ||||||
A. O. SMITH CORPORATION
Balance Sheet
(dollars in millions)
| (unaudited) March 31 2012 |
December 31 2011 |
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| ASSETS: |
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| Cash and cash equivalents |
$ | 367.2 | $ | 463.4 | ||||
| Marketable securities |
60.9 | — | ||||||
| Receivable from sale of securities |
64.7 | — | ||||||
| Receivables |
386.7 | 368.4 | ||||||
| Inventories |
172.2 | 168.4 | ||||||
| Deferred income taxes |
32.0 | 24.6 | ||||||
| Investments |
— | 162.4 | ||||||
| Other current assets |
23.0 | 21.5 | ||||||
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| Total Current Assets |
1,106.7 | 1,208.7 | ||||||
| Net property, plant and equipment |
319.9 | 315.3 | ||||||
| Goodwill and other intangibles |
784.7 | 786.5 | ||||||
| Other assets |
38.9 | 38.5 | ||||||
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| Total Assets |
$ | 2,250.2 | $ | 2,349.0 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY: |
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| Trade payables |
$ | 302.8 | $ | 302.5 | ||||
| Accrued payroll and benefits |
32.8 | 41.9 | ||||||
| Accrued liabilities |
66.5 | 69.6 | ||||||
| Income taxes |
24.2 | 4.5 | ||||||
| Product warranties |
44.1 | 43.7 | ||||||
| Long-term debt due within one year |
18.6 | 18.6 | ||||||
| Current tax and other liabilities - discontinued EPC operations |
13.4 | 31.5 | ||||||
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| Total Current Liabilities |
502.4 | 512.3 | ||||||
| Long-term debt |
300.6 | 443.0 | ||||||
| Pension liabilities |
142.1 | 139.5 | ||||||
| Other liabilities |
156.1 | 159.7 | ||||||
| Long-term liabilities - discontinued EPC operations |
8.3 | 8.7 | ||||||
| Stockholders’ equity |
1,140.7 | 1,085.8 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 2,250.2 | $ | 2,349.0 | ||||
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A. O. SMITH CORPORATION
Statement of Cash Flows
(dollars in millions)
(unaudited)
| Three Months ended March 31 |
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| 2012 | 2011 | |||||||
| Operating Activities |
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| Net earnings |
$ | 47.5 | $ | 41.0 | ||||
| Less earnings from discontinued operations |
— | (16.8 | ) | |||||
| Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
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| Depreciation & amortization |
13.4 | 10.8 | ||||||
| Loss on disposal of assets |
0.1 | 0.2 | ||||||
| Gain on investments |
(27.2 | ) | — | |||||
| Net changes in operating assets and liabilities, net of acquisitions: |
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| Current assets and liabilities |
(21.5 | ) | (45.8 | ) | ||||
| Noncurrent assets and liabilities |
2.7 | (41.7 | ) | |||||
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| Cash Provided by (Used in) Operating Activities - continuing operations |
15.0 | (52.3 | ) | |||||
| Cash (Used in) Provided by Operating Activities - discontinued operations |
(18.5 | ) | 0.1 | |||||
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| Cash Used in Operating Activities |
(3.5 | ) | (52.2 | ) | ||||
| Investing Activities |
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| Capital expenditures |
(13.1 | ) | (12.4 | ) | ||||
| Investment in marketable securities |
(60.9 | ) | — | |||||
| Net proceeds from sale of securities |
122.9 | — | ||||||
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| Cash Provided by (Used in) Investing Activities - continuing operations |
48.9 | (12.4 | ) | |||||
| Cash Provided by (Used in) Investing Activities - discontinued operations |
— | (3.1 | ) | |||||
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| Cash Provided by (Used in) Investing Activities |
48.9 | (15.5 | ) | |||||
| Financing Activities |
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| Long-term debt (retired) incurred |
(143.1 | ) | 77.2 | |||||
| Common stock repurchase |
— | (5.7 | ) | |||||
| Net proceeds from stock option activity |
8.8 | 7.9 | ||||||
| Dividends paid |
(7.3 | ) | (6.4 | ) | ||||
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| Cash (Used in) Provided by Financing Activities - continuing operations |
(141.6 | ) | 73.0 | |||||
| Cash Provided by Financing Activities - discontinued operations |
— | — | ||||||
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| Cash (Used in) Provided by Financing Activities |
(141.6 | ) | 73.0 | |||||
| Net (decrease) increase in cash and cash equivalents |
(96.2 | ) | 5.3 | |||||
| Cash and cash equivalents - beginning of period |
463.4 | 118.9 | ||||||
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| Cash and Cash Equivalents - End of Period |
$ | 367.2 | $ | 124.2 | ||||
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A. O. SMITH CORPORATION
Business Segments
(dollars in millions)
(unaudited)
| Three Months ended March 31 |
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| 2012 | 2011 | |||||||
| Net sales |
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| North America |
$ | 353.3 | $ | 321.7 | ||||
| Rest of World |
124.2 | 105.2 | ||||||
| Inter-segment sales |
(8.9 | ) | (9.5 | ) | ||||
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| $ | 468.6 | $ | 417.4 | |||||
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| Earnings |
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| North America |
$ | 42.2 | $ | 38.1 | ||||
| Rest of World |
14.2 | 10.8 | ||||||
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| 56.4 | 48.9 | |||||||
| Corporate income (expense) (1) |
16.5 | (13.4 | ) | |||||
| Interest expense |
(3.0 | ) | (1.8 | ) | ||||
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| Earnings before income taxes |
69.9 | 33.7 | ||||||
| Tax provision |
22.4 | 9.5 | ||||||
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| Earnings from continuing operations |
$ | 47.5 | $ | 24.2 | ||||
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(1) includes net gain (loss) on investments of: |
$ | 27.2 | $ | (1.6 | ) | |||
Quarterly Sales and Earnings by Segment
2011 and 2010
(dollars in millions)
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | ||||||||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||
| Sales |
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| North America |
$ | 321.7 | $ | 297.8 | $ | 303.6 | $ | 287.4 | $ | 310.5 | $ | 288.6 | $ | 353.7 | $ | 281.6 | $ | 1,289.5 | $ | 1,155.4 | ||||||||||||||||||||
| Rest of World |
105.2 | 75.3 | 110.4 | 95.9 | 110.5 | 99.1 | 129.5 | 98.6 | 455.6 | 368.9 | ||||||||||||||||||||||||||||||
| Inter-segment |
(9.5 | ) | (6.4 | ) | (8.8 | ) | (8.3 | ) | (9.0 | ) | (10.2 | ) | (7.4 | ) | (10.1 | ) | (34.6 | ) | (35.0 | ) | ||||||||||||||||||||
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| 417.4 | 366.7 | 405.2 | 375.0 | 412.0 | 377.5 | 475.8 | 370.1 | 1,710.5 | 1,489.3 | |||||||||||||||||||||||||||||||
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| Earnings |
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| North America |
38.1 | 35.8 | 38.3 | (5.2 | ) | 30.8 | 25.9 | 46.8 | 34.6 | 154.0 | 91.2 | |||||||||||||||||||||||||||||
| Rest of World |
10.8 | 8.2 | 11.0 | 13.0 | 9.0 | 11.8 | 11.8 | 9.6 | 42.7 | 42.4 | ||||||||||||||||||||||||||||||
| Inter-segment |
— | — | — | — | — | (0.2 | ) | (0.7 | ) | (0.2 | ) | (0.7 | ) | |||||||||||||||||||||||||||
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| 48.9 | 44.0 | 49.3 | 7.8 | 39.8 | 37.7 | 58.4 | 43.5 | 196.5 | 132.9 | |||||||||||||||||||||||||||||||
| Corporate (expense) income |
(13.4 | ) | (13.3 | ) | (6.3 | ) | (12.8 | ) | 2.5 | (12.6 | ) | (8.5 | ) | (13.0 | ) | (25.7 | ) | (51.6 | ) | |||||||||||||||||||||
| Interest expense |
(1.8 | ) | (1.7 | ) | (2.1 | ) | (1.6 | ) | (2.5 | ) | (1.8 | ) | (2.9 | ) | (1.8 | ) | (9.3 | ) | (6.9 | ) | ||||||||||||||||||||
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| Earnings (loss) before income taxes |
33.7 | 29.0 | 40.9 | (6.6 | ) | 39.8 | 23.3 | 47.0 | 28.7 | 161.5 | 74.4 | |||||||||||||||||||||||||||||
| Tax provision (credit) |
9.5 | 7.7 | 12.3 | (5.7 | ) | 12.9 | 7.1 | 15.5 | 8.2 | 50.3 | 17.3 | |||||||||||||||||||||||||||||
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| Earnings (loss) from continuing operations |
$ | 24.2 | $ | 21.3 | $ | 28.6 | $ | (0.9 | ) | $ | 26.9 | $ | 16.2 | $ | 31.5 | $ | 20.5 | $ | 111.2 | $ | 57.1 | |||||||||||||||||||
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| EPS—Continuing Operations |
$ | 0.52 | $ | 0.46 | $ | 0.62 | $ | (0.02 | ) | $ | 0.58 | $ | 0.35 | $ | 0.68 | $ | 0.44 | $ | 2.39 | $ | 1.24 | |||||||||||||||||||
| Operating Margin |
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| North America |
11.8 | % | 12.0 | % | 12.6 | % | -1.8 | % | 9.9 | % | 9.0 | % | 13.2 | % | 12.3 | % | 11.9 | % | 7.9 | % | ||||||||||||||||||||
| Rest of World |
10.3 | % | 10.9 | % | 10.0 | % | 13.6 | % | 8.1 | % | 11.9 | % | 9.1 | % | 9.7 | % | 9.4 | % | 11.5 | % | ||||||||||||||||||||