Oct 28 (Reuters) - Water heater-maker A.O.Smith

cut the upper end of its full-year profit forecast on Tuesday,

as slowing economic growth in China has weakened demand for its

water heaters in the region.

Shares of the company were down nearly 2% in premarket

trading.

Tariffs imposed by U.S. President Donald Trump have driven

up raw material costs, putting pressure on the company's profit

margins.

"We are cautious about the remainder of the year primarily

due to continued headwinds in the China market and the impact of

weakening new home construction on residential water heating in

North America," said CEO Steve Shafer.

The company said higher segment earnings and margins during

the quarter were driven by previously employed restructuring

efforts and cost controls in China.

The Milwaukee, Wisconsin-based company now expects adjusted

earnings per share to be in the range of $3.70 to $3.85,

compared with its prior forecast of $3.70 to $3.90.

Sales in North America, which accounted for more than 77% of

its total annual sales in 2024, rose 6% to $742.8 million.

Third-quarter revenue increased 4% from a year earlier to

$942.5 million.

Sales from other parts of the world, which includes China

and India, fell 1% to $207.9 million.

Net income for the third quarter was $132 million, or 94

cents per share, compared with $120.1 million, or 82 cents per

share a year, earlier. Analysts on an average expected 94 cents,

according to data compiled by LSEG.