Water heater company, AO Smith (NYSE: AOS), reported positive second-quarter earnings last week. Management reaffirmed its 2022 full-year guidance, but its geographical markets, including China, showed vastly different results. Let's take a closer look.

Last week, AO Smith reported encouraging financial results for Q2 2022. Sales jumped 12% over last year to $966 million. Adjusted earnings per share (EPS) increased 14% to $0.82. AO Smith breaks out its results by geography. Sales in North America popped 23% in Q2 to $744 million, and adjusted earnings in the region came in at $163 million. As a show of AO Smith's brand power, price increases added $109 million to operating earnings in the region. The price increases far outpaced the company's $85 million in additional inflationary costs.

In its "rest of the world" region, sales slumped 13% to $230 million and adjusted earnings to $18 million. The poor results were based on COVID-related lockdowns in AO Smith's largest international market, China. However, sales began to increase in China after lockdown restrictions ended during the quarter. Sales in India ballooned  79% in the quarter, though the market is a small territory for AO Smith.

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Source Fool.com