A.O. Smith Corp. announced third quarter earnings of $.4 million or $.02 per share on sales of $269 million. These results were in line with current estimates, but below last year's results. Compared with last year, sales declined approximately $22 million or 8%, while earnings declined by $7 million. Third quarter sales for the Water Systems business increased approximately 4% to $83 million, primarily on the strength of higher sales of residential product.