A. O. Smith Corporation: Announces 26 percent dividend increase

CONTACT: Media, Mark A. Petrarca, 414-359-4100, mpetrarca@aosmith.com, or Analysts/Investors, Patricia K. Ackerman, 414-359-4130, packerman@aosmith.com

MILWAUKEE — Directors of A. O. Smith Corporation (NYSE: AOS) today approved a 26 percent increase in the company’s quarterly cash dividend to $.24 per share.

The dividend increase will affect the company’s Common Stock and Class A Common Stock and is payable on Feb. 16 to shareholders of record Feb. 5.

Over the last five years, the company’s quarterly dividend has grown at a compounded annual rate of 26 percent. This is the 11th consecutive year the Milwaukee-based water technology company has increased its quarterly cash dividend.

“Our businesses have achieved solid performance over the past several years,” Ajita G. Rajendra, chairman and chief executive officer, said. “We remain confident we can continue to perform at a high level and enable the corporation to achieve its long-term growth model of approximately eight percent annual organic sales growth.”

“With a robust balance sheet, a strong cash position, and adequate borrowing capacity, we believe strongly that we are able to increase our dividend while continuing to support organic growth and pursue global growth opportunities and strategic acquisitions.”