A. O. Smith Corporation reported a net sales figure of $3.82 billion for the fiscal year ending December 31, 2024, a decrease of 0.9% from the previous year's sales of $3.85 billion. The company's gross profit margin slightly declined to 38.1% from 38.5% in 2023, attributed to increased production costs and operational inefficiencies. Net earnings for 2024 were $533.6 million, down from $556.6 million in 2023, reflecting a decrease in profitability amid challenging market conditions.
The company experienced notable changes in its operational landscape, including the acquisition of Pureit, a water purification business from Unilever, for approximately $125 million. This acquisition is expected to enhance A. O. Smith's market presence in South Asia, effectively doubling its penetration in the region. Additionally, the company acquired Impact Water Products in early 2024, further expanding its water treatment business on the West Coast of the United States. These strategic moves align with A. O. Smith's ongoing efforts to diversify its product offerings and geographic reach.
In terms of operational metrics, A. O. Smith's North America segment generated $2.95 billion in sales, a slight increase from $2.92 billion in 2023, driven by higher boiler sales and pricing actions. However, the segment faced challenges with lower water heater volumes. The Rest of World segment, primarily driven by sales in China, reported a decline in sales to $918.6 million, down from $956.9 million in 2023, largely due to decreased demand and unfavorable currency translation effects. The company employed approximately 12,700 employees globally, with a workforce distribution of 7,200 in North America and 5,500 in international markets.
Looking ahead, A. O. Smith anticipates flat to 2% growth in consolidated sales for 2025, with expectations of continued softness in consumer demand, particularly in China. The company projects earnings per share to range between $3.60 and $3.90, excluding potential impacts from future acquisitions. A. O. Smith remains focused on enhancing its product portfolio and operational efficiency to navigate the competitive landscape and address evolving market demands.
About SMITH A O CORP
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