8 slides from A.o. Smith's corporate update, Dec 10, 2008
Slide 1: Smith: Innovation has a name
Smith Innovation has a name.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that we believe are “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,”
Slide 3: Revised Fourth Quarter Forecast
Revised Fourth Quarter Forecast GAAP earnings per share at $.15 to $.25 Implications for full year: $2.63 to $2.73 Full year cash flow expected to be about $140 million
Slide 4: As We See it Today
As We See it Today Fourth quarter order rates down dramatically in both businesses, including China Consumers react to credit crisis by cutting spending Channel inventory levels driven down as customers conserve cash Order volumes not expected to bounce back in December (no pre-buy ahead of price in
Slide 5: Our Countermeasures
Our Countermeasures Conserve Cash December production schedules reduced Discretionary SG&A spending eliminated Core restructuring and growth projects will remain on track
Slide 6: Implications for 2009
Implications for 2009 Many moving parts Opportunities – Pricing/materials balance – EPC restructuring benefits of $15 million – China demand buoyed by stimulus package – New product introductions Risks – Global recession continues – Pricing/materials balance – Commercial volumes – Discretionary repl
Slide 7: Merger with SICO
Merger with SICO SICO will merge into wholly-owned subsidiary of AOSmith SICO shareholders will hold AOSmith shares directly Benefits to AOSmith Potential increase public float Reduction in total shares outstanding Several corporate governance enhancements Essentially all costs paid by SICO Transact
Slide 8: Fourth Quarter Conference call
Fourth Quarter Conference call: Thursday, January 22, 2009 10 am Eastern Time