Smith A O Corp (AOS) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

Exhibit 99.1

January 26, 2010

A. O. Smith reports record earnings per share for 2009

Milwaukee, Wis.—A. O. Smith Corporation (NYSE:AOS) today announced the achievement of record earnings per share in 2009 in spite of lower revenues caused by the lingering housing crisis, a weak commercial construction market, and the global recession. Sales in 2009 were $2.0 billion, 14 percent lower than 2008 sales of $2.3 billion.

For the year, the company earned $81.3 million or $3.39 per share. Non-GAAP earnings, adjusted for the effect of the Smith Investment Company transaction which closed in April 2009, were $89.7 million, or $2.96 per share, 10 percent higher than non-GAAP earnings of $81.9 million or $2.70 per share earned in 2008. Growth in higher-margin China sales, aggressive cost management, lower raw material costs, and lower restructuring costs contributed to the improved results. Additionally, the company generated record cash flow from operations in 2009 of $267.6 million.

The company earned $22.7 million or $.74 per share in the fourth quarter of 2009 compared with non-GAAP earnings of $6.7 million or $.22 per share earned in the same period last year. Fourth quarter 2009 sales were $509.6 million, essentially flat compared with 2008 fourth quarter sales of $508.6 million.

“Our company and our employees performed extremely well under difficult circumstances last year,” Chairman and Chief Executive Officer Paul W. Jones said. “We recognized the onset of the global recession early, made the difficult decisions necessary to address the expected impact on the company, and then stuck by those decisions. The expense reduction and cash conservation programs we put in place had the desired effect, helping us maintain our profitability and generate significant cash flow throughout the year.”

“Our employees deserve a lot of credit for finding countless ways to reduce expenses and generate cash while remaining focused on our customers,” Jones added.

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