Jan 30 (Reuters) - Water heater maker A. O. Smith ( AOS )
forecast full-year profit below estimates and also
missed fourth-quarter profit expectations on Thursday, hurt by
lower sales of its water heaters in North America and China.
A combination of job insecurity, a prolonged housing
downturn, debt and tariff threats from U.S. President Donald
Trump has weakened consumer demand in China, impacting the
company's sales.
"A. O. Smith's ( AOS ) 2024 sales declined due to a weak economy in
China continuing to negatively impact consumer demand and soft
North America water heater demand in the second half of the
year," said CEO Kevin J. Wheeler.
The company forecast 2025 adjusted profit between $3.60 and
$3.90 per share, missing analysts' estimates of $4.03 according
to data compiled by LSEG.
Shares of the company, which makes residential and
commercial water treatment products, were down 2.7% before the
bell.
Sales in the company's international segment fell above 4%
to $918.6 million in 2024, primarily due to weak demand in
China. The segment accounted for 25% of its total sales in 2023.
The Milwaukee, Wisconsin-based company has also been hit by
slow recovery in the residential housing market in the United
States.
A. O. Smith ( AOS ) reported adjusted earnings of 85 cents per share
for the quarter ended Dec. 31, down 12% from a year earlier.
Its overall revenue fell about 8% to $912.40 million for the
quarter, below analysts' average expectation of $953.93 million.