Electric motor manufacturer

A.O. Smith

(AOS) - Get Report

beat analysts' earnings estimates by three cents in its third quarter due in part to cost cutting. The company also upped its 2002 earnings outlook.

The company earned $10 million, or 34 cents a share, in the latest quarter compared with $400,000, or 2 cents a share, a year ago. Analysts polled by FirstCall were expecting the company to earn 31 cents a share.

Revenue was $352.4 million, compared with $269.1 million in 2001.

Milwaukee-based A.O. Smith said its water systems business performed well, earning $13.4 million, compared with $8.8 million in the same quarter last year. The company cited higher volume and improved cost performance.

Looking to full-year 2002 results, the company expects to earn between $1.80 and $1.85 a share. Analysts had expected the company to earn $1.79 a share, on average.

For 2003, A.O. Smith expects to earn between $2.05 and $2.25 a share, while analysts expect the company to earn $2.21 a share.

Shares of the company closed at $27.35 Friday on the

New York Stock Exchange

.