A. O. Smith (AOS) 8-K A. O. Smith first quarter sales and earnings increase

Exhibit 99.2

A. O. SMITH CORPORATION

(condensed consolidated financial statements -

dollars in millions, except per share data)

Statement of Earnings

(unaudited)

	Three Months ended March 31
	2012			2011
Net sales	$	468.6		$	417.4
Cost of products sold		319.5			290.4
Gross profit		149.1			127.0
Selling, general and administrative		105.3			89.3
Interest expense		3.0			1.8
Other (income) expense		(29.1	)		2.2
		69.9			33.7
Provision for income taxes		22.4			9.5
Earnings from continuing operations		47.5			24.2
Earnings from discontinued EPC operations, net of tax		—			16.8
Net earnings	$	47.5		$	41.0
Diluted earnings per share of common stock
Continuing operations	$	1.02		$	0.52
Discontinued operations		—			0.36
Net	$	1.02		$	0.88
Average common shares outstanding (000's omitted)		46,488			46,540

A. O. SMITH CORPORATION

Balance Sheet

(dollars in millions)

	(unaudited) March 31 2012		December 31 2011
ASSETS:
Cash and cash equivalents	$	367.2	$	463.4
Marketable securities		60.9		—
Receivable from sale of securities		64.7		—
Receivables		386.7		368.4
Inventories		172.2		168.4
Deferred income taxes		32.0		24.6
Investments		—		162.4
Other current assets		23.0		21.5
Total Current Assets		1,106.7		1,208.7
Net property, plant and equipment		319.9		315.3
Goodwill and other intangibles		784.7		786.5
Other assets		38.9		38.5
Total Assets	$	2,250.2	$	2,349.0
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Trade payables	$	302.8	$	302.5
Accrued payroll and benefits		32.8		41.9	��
Accrued liabilities		66.5		69.6
Income taxes		24.2		4.5
Product warranties		44.1		43.7
Long-term debt due within one year		18.6		18.6
Current tax and other liabilities - discontinued EPC operations		13.4		31.5
Total Current Liabilities		502.4		512.3
Long-term debt		300.6		443.0
Pension liabilities		142.1		139.5
Other liabilities		156.1		159.7
Long-term liabilities - discontinued EPC operations		8.3		8.7
Stockholders’ equity		1,140.7		1,085.8
Total Liabilities and Stockholders’ Equity	$	2,250.2	$	2,349.0

A. O. SMITH CORPORATION

Statement of Cash Flows

(dollars in millions)

(unaudited)

	Three Months ended March 31
	2012			2011
Operating Activities
Net earnings	$	47.5		$	41.0
Less earnings from discontinued operations		—			(16.8	)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation & amortization		13.4			10.8
Loss on disposal of assets		0.1			0.2
Gain on investments		(27.2	)		—
Net changes in operating assets and liabilities, net of acquisitions:
Current assets and liabilities		(21.5	)		(45.8	)
Noncurrent assets and liabilities		2.7			(41.7	)
Cash Provided by (Used in) Operating Activities - continuing operations		15.0			(52.3	)
Cash (Used in) Provided by Operating Activities - discontinued operations		(18.5	)		0.1
Cash Used in Operating Activities		(3.5	)		(52.2	)
Investing Activities
Capital expenditures		(13.1	)		(12.4	)
Investment in marketable securities		(60.9	)		—
Net proceeds from sale of securities		122.9			—
Cash Provided by (Used in) Investing Activities - continuing operations		48.9			(12.4	)
Cash Provided by (Used in) Investing Activities - discontinued operations		—			(3.1	)
Cash Provided by (Used in) Investing Activities		48.9			(15.5	)
Financing Activities
Long-term debt (retired) incurred		(143.1	)		77.2
Common stock repurchase		—			(5.7	)
Net proceeds from stock option activity		8.8			7.9
Dividends paid		(7.3	)		(6.4	)
Cash (Used in) Provided by Financing Activities - continuing operations		(141.6	)		73.0
Cash Provided by Financing Activities - discontinued operations		—			—
Cash (Used in) Provided by Financing Activities		(141.6	)		73.0
Net (decrease) increase in cash and cash equivalents		(96.2	)		5.3
Cash and cash equivalents - beginning of period		463.4			118.9
Cash and Cash Equivalents - End of Period	$	367.2		$	124.2

A. O. SMITH CORPORATION

Business Segments

(dollars in millions)

(unaudited)

	Three Months ended March 31
	2012			2011
Net sales
North America	$	353.3		$	321.7
Rest of World		124.2			105.2
Inter-segment sales		(8.9	)		(9.5	)
	$	468.6		$	417.4
Earnings
North America	$	42.2		$	38.1
Rest of World		14.2			10.8
		56.4			48.9
Corporate income (expense)(1)		16.5			(13.4	)
Interest expense		(3.0	)		(1.8	)
Earnings before income taxes		69.9			33.7
Tax provision		22.4			9.5
Earnings from continuing operations	$	47.5		$	24.2
(1)       includes net gain (loss) on investments of:	$	27.2		$	(1.6	)

Quarterly Sales and Earnings by Segment

2011 and 2010

(dollars in millions)

	First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Total Year
	2011			2010			2011			2010			2011			2010			2011			2010			2011			2010
Sales
North America	$	321.7		$	297.8		$	303.6		$	287.4		$	310.5		$	288.6		$	353.7		$	281.6		$	1,289.5		$	1,155.4
Rest of World		105.2			75.3			110.4			95.9			110.5			99.1			129.5			98.6			455.6			368.9
Inter-segment		(9.5	)		(6.4	)		(8.8	)		(8.3	)		(9.0	)		(10.2	)		(7.4	)		(10.1	)		(34.6	)		(35.0	)
		417.4			366.7			405.2			375.0			412.0			377.5			475.8			370.1			1,710.5			1,489.3
Earnings
North America		38.1			35.8			38.3			(5.2	)		30.8			25.9			46.8			34.6			154.0			91.2
Rest of World		10.8			8.2			11.0			13.0			9.0			11.8			11.8			9.6			42.7			42.4
Inter-segment		—			—			—			—			—						(0.2	)		(0.7	)		(0.2	)		(0.7	)
		48.9			44.0			49.3			7.8			39.8			37.7			58.4			43.5			196.5			132.9
Corporate (expense) income		(13.4	)		(13.3	)		(6.3	)		(12.8	)		2.5			(12.6	)		(8.5	)		(13.0	)		(25.7	)		(51.6	)
Interest expense		(1.8	)		(1.7	)		(2.1	)		(1.6	)		(2.5	)		(1.8	)		(2.9	)		(1.8	)		(9.3	)		(6.9	)
Earnings (loss) before income taxes		33.7			29.0			40.9			(6.6	)		39.8			23.3			47.0			28.7			161.5			74.4
Tax provision (credit)		9.5			7.7			12.3			(5.7	)		12.9			7.1			15.5			8.2			50.3			17.3
Earnings (loss) from continuing operations	$	24.2		$	21.3		$	28.6		$	(0.9	)	$	26.9		$	16.2		$	31.5		$	20.5		$	111.2		$	57.1
EPS—Continuing Operations	$	0.52		$	0.46		$	0.62		$	(0.02	)	$	0.58		$	0.35		$	0.68		$	0.44		$	2.39		$	1.24
Operating Margin
North America		11.8	%		12.0	%		12.6	%		-1.8	%		9.9	%		9.0	%		13.2	%		12.3	%		11.9	%		7.9	%
Rest of World		10.3	%		10.9	%		10.0	%		13.6	%		8.1	%		11.9	%		9.1	%		9.7	%		9.4	%		11.5	%