US-based water technology company AO Smith Corporation has reported third quarter earnings from continuing operations of $37 million on a 12.2 per cent increase in revenue.
The company's 2012 third quarter performance included a full quarter of Lochinvar's results. It bought Lochinvar in August last year.
Sales for the three months ending September 30 were $462.2 million, more than $50 million higher than third quarter 2011 sales of $412m driven by Lochinvar sales and strong organic growth in China.
'The factors that have been influencing our business throughout 2012 continued during the third quarter,' said chairman and chief executive officer Paul W. Jones. 'Our AO Smith branded sales in China grew over 20 per cent in the quarter, driven by new distribution, market share gains and new products, despite the slowdown in that country's economy.'
He added: 'The integration of the Lochinvar acquisition is essentially complete, and our pipeline of possible acquisition candidates remains active. We continue to pursue water heater and water treatment investments all over the world, and we are committed to investments that increase shareholder value. With more than $400m in cash and an additional $400m in borrowing capacity, we believe we have more than enough resources to take advantage of the right opportunities when they come along.'
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