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A O Smith Corp V.AOS


Primary Symbol: AOS

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and other. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Impact Water, Water-Right, Master Water, Atlantic Filter and Water Tec brands.


NYSE:AOS - Post by User

Post by oilwatcher13on May 22, 2014 7:17pm
169 Views
Post# 22589851

MD&A - Liquidity andCapital

MD&A - Liquidity andCapitalThe Company commenced 2014 with a working capital deficit of $0.1 million. The working capital deficit at March 31, 2014 was $0.5 million. During 2014, the Company will further consider the timing and approach for the next phase of capital expenditure, if any, on its properties. The ability of the Company to recover the amounts shown for the properties is dependent upon the existence of economically recoverable reserves and upon the Company’s ability to obtain applicable permits and additional financing to continue the development of the Company’s properties and generate funds therefrom and to meet current and future obligations. The Company has terminated the agreement with Cresendo Resources with respect to the farm-out of Algar Lake. The Company has received an official notice from the Province of Alberta indicating that a significant portion of the Clearwater leases will be cancelled under UDSR and LARP. The Company will be compensated in accordance with existing legislation. The Company’s policy is to ensure that its cash investments are liquid and are invested in low risk products. The Company is pursuing financing arrangements to fund the international transactions that it has committed to. In addition, the Company is seeking compensation for the loss of cancelled lands and has submitted an estimate of the cost of the leases.
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