(Reuters) – A. O. Smith on Thursday raised its full-year adjusted profit forecast, helped by lower cost of steel and strong demand for water heaters in North America.
The Milwaukee, Wisconsin-based company now expects an adjusted profit of $3.45-$3.60 per share, compared with its prior projection of $3.30-$3.50 per share.
“We saw improvement in consumer demand in China in the quarter, especially for our water treatment products even as the Chinese economy remained challenged,” Chief Executive Kevin Wheeler said.
Demand for water heaters have remained strong, driven by an uptick in commercial and residential real estate activities.
The company earned $157 million, or $1.04 per share, for the quarter ended June 30, compared with $126.2, or 81 cents per share, a year earlier.
(Reporting by Nathan Gomes in Bengaluru; Editing by Anil D’Silva)