In the early 1900s, the seven Jacuzzi brothers began their path-breaking scientific discoveries. Of course, it was the first jetted bath that made Jacuzzi (NYSE:JJZ) a household name. Now, the technology has more than 250 worldwide patents. And it has diversified into a myriad of product lines, such as commercial faucets, water control, grade drainage, and even plumbing products. Brands include Sundance, Zurn, and Rainbow.

Last week, the company announced its quarterly report. In the third quarter, profits were $5.5 million, or $0.07 per share, which was up from a loss of $16.3 million, or $0.22 per share, in the same period a year ago. During this period, sales increased 5% to $343.7 million.

Jacuzzi showed strength in jetted and non-jetted baths. There was also strong growth in European markets. Of course, a bounce from currency translations was helpful.

Over the past year, the company has been involved in a restructuring. Jacuzzi closed plants in Mississippi and Ohio, as well as downsized a plant in Pennsylvania. There was also consolidation of administrative functions in the Texas office.

For a company with a market cap of just $645 million, Jacuzzi has a solid brand. In fact, the company's competitors are quite large, such as American Standard Companies (NYSE:ASD), which fetches an $8.89 billion market cap.

True, Jacuzzi has an innovative product line. But demand is soft, and costs of energy, commodities, and even Sarbanes-Oxley are having an adverse impact. The company's guidance for 2005 is for earnings of $0.61 cents to $0.65 cents -- which translates to $0.67 cents to $0.71 cents excluding charges. The Street consensus was for $0.68 cents. So, it should be no surprise that investors see the stock more like a snooze in a relaxing hot tub.

Fool contributor Tom Taulli does not own shares mentioned in this article.