MILWAUKEE. ( TheStreet) -- A. O. Smith ( AOS) said Tuesday it expects to significantly exceed analysts' first-quarter estimates with earnings of between 95 cents and $1 a share on higher-than-expected sales volumes. Adding to its outlook, A. O. Smith said, were cost-reduction efforts and continued strength in water heater sales in China. Analysts surveyed by Thomson Reuters expect first-quarter earnings of 68 cents a share. A. O. Smith also increased its full-year earnings forecast to $3.20 and $3.40 a share. Analysts see earnings of $3.14 a share. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.