| Market Capitalization (Millions $) |
8,424 |
| Shares
Outstanding (Millions) |
139 |
| Employees |
11,500 |
| Revenues (TTM) (Millions $) |
3,811 |
| Net Income (TTM) (Millions $) |
528 |
| Cash Flow (TTM) (Millions $) |
12 |
| Capital Exp. (TTM) (Millions $) |
60 |
Business Description
Company Profile: A. O. Smith Corporation
Overview:
A. O. Smith Corporation is a global leader in the manufacturing and marketing of residential and commercial water heating products. The company operates through two distinct reporting segments: North America and Rest of World (RoW). The RoW segment primarily encompasses significant markets such as China, Europe, and India, focusing on tailored manufacturing and marketing strategies suited to each region.
Business Segments:
1. North America Segment:
- Manages the production and marketing of a diversified lineup of water heating solutions, including gas, gas tankless, and electric water heaters.
- Also offers specialty commercial water heating equipment, condensing and non-condensing boilers, and water systems tanks.
- Positively influences the commercial water heating market due to a comprehensive product line and innovative high-efficiency offerings.
2. Rest of World Segment:
- Primarily focused on the markets of China, Europe, and India, manufacturing and marketing water heating products suited for local needs.
- Engages in the production and distribution of water treatment products, particularly for the Asian market.
- Expands the company’s portfolio to include in-home air purification products, specifically targeting the Chinese market.
Historical Context:
In August 2011, A. O. Smith Corporation divested its Electrical Products business (EPC) to Regal Beloit Corporation (RBC) for approximately $760 million in cash and stock. This strategic decision allowed the company to focus on its core water heating and treatment businesses, and EPC is now reported as a discontinued operation in the financial statements.
Sales Channels:
- A. O. Smith has established a robust wholesale distribution network consisting of more than 1,200 independent wholesale plumbing distributors and over 4,400 selling locations, catering to both residential and commercial markets.
- The company also retails its residential water heaters through major home improvement chains, maintaining long-term exclusive partnerships with leading national retailers, including Lowes and Sears.
Market Position:
As the largest manufacturer and marketer of water heaters in North America, A. O. Smith holds a leading market share across both residential and commercial sectors. The company’s Lochinvar brand is recognized for its strong presence in the U.S. residential and commercial boiler markets.
Research and Development:
To maintain its competitive edge and foster innovation, A. O. Smith conducts extensive research and development at its Corporate Technology Center in Milwaukee, Wisconsin, as well as its Global Engineering Center in Nanjing, China. This focus on R&D enables the company to develop new products and improve existing processes continually.
Global Presence:
With a significant footprint in China, A. O. Smith sells water heaters through over 8,000 retail outlets, including more than 2,000 dedicated exclusively to its products. Its water treatment and air purification products are also distributed widely across the Chinese market, featuring in over 5,500 and 1,200 retail locations, respectively.
Conclusion:
A. O. Smith Corporation stands out as a formidable player in the water heating and treatment industry, leveraging its extensive product offerings, strategic distribution channels, and commitment to innovation to drive growth in both established and emerging markets.
Company Address: 11270 West Park Place Milwaukee 53224 WI
Company Phone Number: 359-4000 Stock Exchange / Ticker: NYSE AOS
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