A. O. Smith Company Profile
A. O. Smith Corporation
- Key Management
Mr. Kevin J Wheeler (CEO)
A. O. Smith Corp. produces residential and commercial electric water heaters, boilers, and tanks, as well as water treatment products. It operates in two segments: North America, and the Rest of the World. North America manufactures and markets a wide range of residential and commercial electric water heaters, boilers, and tanks. The Rest of the World segment includes India, Europe, China, and China. It also manufactures and markets water treatment products. Charles Jeremiah Smith founded the company in 1874. It is located in Milwaukee, WI.
A. O. Smith Revenue :
- A. O. Smith Corp’s annual revenue for 2021 was US$ 3,539 Mn, a 22.23% increase from 2020
- The annual revenue generated by A. O. Smith Corp in 2020 was US$ 2,895 Mn
- At a -6.12% decrease, A. O. Smith Corp’s annual revenue of US$ 2,993 Mn was indexed in 2019
- A. O. Smith Corp generated total revenue of US$ 3,188 Mn in 2018
A. O. Smith Operating Income :
- US$ 610 Mn was A. O. Smith Corp’s operating income in 2021, a 36.47% increase from 2020 figures
- A. O. Smith Corp indexed a -3.87% decrease in operating incomes from 2019, amounting to US$ 447 Mn in 2020
- A. O. Smith Corp generated an operating income of US$ 465 Mn in 2019
- An operating income of US$ 552 Mn was indexed by A. O. Smith Corpn 2018
A. O. Smith Net Income :
- US$ 487 Mn was the net income generated by A. O. Smith Corp in 2021
- A. O. Smith Corp’s net income for 2020 was US$ 344 Mn, a -7.03% decrease from 2019
- From 2018’s net incomes, A. O. Smith Corp registered a -16.67% decrease in 2019, amounting to US$ 370 Mn
- A net income of US$ 444 Mn was generated in 2018 by A. O. Smith Corp
A. O. Smith Operating Margin :
- A. O. Smith Corp’s operating margin for 2021 was 17%, an 11.69% increase from 2020
- The operating margin generated by A. O. Smith Corp in 2020 was 15%
- At a -10.4% decrease, A. O. Smith Corp’s operating margin of 16% was indexed in 2019
- A. O. Smith Corp generated an operating margin of 17% in 2018
A. O. Smith Gross Margin :
- 37% was A. O. Smith Corp’s gross margin in 2021, a -3.39% decrease from 2020 figures
- A. O. Smith Corp indexed a -3.04% decrease in gross margins from 2019, amounting to 38% in 2020
- A. O. Smith Corp generated a gross margin of 40% in 2019
- A gross margin of 41% was indexed by A. O. Smith Corp in 2018
Excellent research and development capabilities
Strong research and development capabilities are a hallmark of the company. Research and development (R&D), is a company strategy that focuses on developing new products and processes and improving existing products’ capabilities. AO Smith’s R&D expenditures amounted to 2.9% of its revenue in FY2019.
The company’s R&D is conducted at its Corporate Technology Center, Milwaukee, Wisconsin, and its Global Engineering Center, Nanjing in China. This has allowed AO Smith to add more features to its products, and also bring out the latest technologies in various areas. The company’s strong research and development capabilities allowed it to launch many products in recent years.
A robust distribution network allows you to reach the end markets
AO Smith’s strong distribution network allows it to reach diverse end markets. The company distributes its products via a wholesale distribution channel that includes over 1,300 independent wholesale plumber distributors. The company also sells residential water heaters through retail and maintenance, repairs, and operations (MRO). The company’s commercial boiler distribution channel consists primarily of wholesale channels and manufacturer representative firms.
The company sells water treatment products directly to consumers via e-commerce, online retailers such as Amazon, and other retail chains. AO Smith sells water softener products through water quality retailers and home-center retail chains, and water treatment products through Lowe’s. More than 9,000 outlets sell water heaters in China. The company sells water treatment and air purification products in more than 3,300 and 8,100outlets in China. Its strong distribution network allows it to reach a wide range of residential and commercial markets.
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