AAON Inc.

AAON Inc. (AAON) recently announced record results for the fourth quarter and full year. Annual sales climbed 7% to $279.7 million year over-year. Net income for 2008 jumped 23% to $28.6 million from the year-prior. Both sales and net income hit all-time highs.

Company Description

AAON Inc. is a manufacturer of semi-custom and custom heating and cooling products, including air handlers, condensing units, chillers, rooftop units and boilers. The company’s products serve the commercial and industrial new construction and replacement markets.

Record Growth

The company recently announced record results for the fourth quarter and full year, after delivering a record third quarter. Annual sales climbed 7% to $279.7 million year over-year. Net income for 2008 jumped 23% to $28.6 million from the year-prior. Both sales and net income hit all-time highs.

Fourth-quarter earnings per share of 35 cents surpassed the consensus estimate of 30 cents and exceeded the previous year’s 24 cents.

Management stated that the increase in sales was attributable to a diversified customer mix, an excellent response to many new and redesigned products and price increases, adding that the increase in net income resulted from both higher volume and improved productivity.

Solid Income

The company recently declared a semi-annual cash dividend of 16 cents per share, which was paid out on January 2. AAON’s dividend yield of 2% is in line with the industry average.

Fundamentals are Strong

The company offers a return on equity (ROE) of 30%, exceeding the industry average of 18%. The company also boasts a solid balance sheet with no debt. AAON has a net profit margin of 10%, compared to the industry average of 4%.

Read the full analyst report on AAON