Ohio | 34-1860551 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
Item 2.02 | Results of Operations and Financial Condition. | |
On July 29, 2013, Lincoln Electric Holdings, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended June 30, 2013. A copy of the Company’s press release issued on July 29, 2013 is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release is also available through the Company’s website at www.lincolnelectric.com. The information in this Current Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. | ||
Item 9.01 | Financial Statements and Exhibits. | |
(d) Exhibits | ||
99.1 The Company’s press release dated July 29, 2013. |
LINCOLN ELECTRIC HOLDINGS, INC. | ||
/s/ Vincent K. Petrella | ||
Vincent K. Petrella | ||
Senior Vice President, Chief Financial Officer and Treasurer | ||
(principal financial and accounting officer) | ||
July 29, 2013 |
Exhibit No. | Exhibit | ||
99.1 | The Company’s press release dated July 29, 2013. | ||
Second Quarter Highlights vs. Prior Year | |
§ Operating income up 9% to $104 million, or 14.3% of sales, despite 2% lower sales | |
§ Adjusted operating income up 9% to $108 million and up 150 bps to 14.8% of sales | |
§ Profitability tracks higher on mix, operational improvements, and price/cost relationship | |
§ Cash flow from operations up 31% to $107 million | |
§ Returned $57 million to shareholders through share repurchases | |
Three months ended June 30, | Fav (Unfav) to Prior Year | ||||||||||||||||||||
2013 | % of Sales | 2012 | % of Sales | $ | % | ||||||||||||||||
Net sales | $ | 727,432 | 100.0 | % | $ | 744,045 | 100.0 | % | $ | (16,613 | ) | (2.2 | %) | ||||||||
Cost of goods sold | 487,094 | 67.0 | % | 519,048 | 69.8 | % | 31,954 | 6.2 | % | ||||||||||||
Gross profit | 240,338 | 33.0 | % | 224,997 | 30.2 | % | 15,341 | 6.8 | % | ||||||||||||
Selling, general & administrative expenses | 135,215 | 18.6 | % | 127,714 | 17.2 | % | (7,501 | ) | (5.9 | %) | |||||||||||
Rationalization and asset impairment charges | 851 | 0.1 | % | 1,258 | 0.2 | % | 407 | 32.4 | % | ||||||||||||
Operating income | 104,272 | 14.3 | % | 96,025 | 12.9 | % | 8,247 | 8.6 | % | ||||||||||||
Interest income | 890 | 0.1 | % | 849 | 0.1 | % | 41 | 4.8 | % | ||||||||||||
Equity earnings in affiliates | 1,258 | 0.2 | % | 2,006 | 0.3 | % | (748 | ) | (37.3 | %) | |||||||||||
Other income | 913 | 0.1 | % | 403 | 0.1 | % | 510 | 126.6 | % | ||||||||||||
Interest expense | (799 | ) | (0.1 | %) | (1,126 | ) | (0.2 | %) | 327 | 29.0 | % | ||||||||||
Income before income taxes | 106,534 | 14.6 | % | 98,157 | 13.2 | % | 8,377 | 8.5 | % | ||||||||||||
Income taxes | 34,007 | 4.7 | % | 31,792 | 4.3 | % | (2,215 | ) | (7.0 | %) | |||||||||||
Effective tax rate | 31.9 | % | 32.4 | % | 0.5 | % | |||||||||||||||
Net income including non-controlling interests | 72,527 | 10.0 | % | 66,365 | 8.9 | % | 6,162 | 9.3 | % | ||||||||||||
Non-controlling interests in subsidiaries’ (loss) earnings | (79 | ) | — | 46 | — | (125 | ) | (271.7 | %) | ||||||||||||
Net income | $ | 72,606 | 10.0 | % | $ | 66,319 | 8.9 | % | $ | 6,287 | 9.5 | % | |||||||||
Basic earnings per share | $ | 0.88 | $ | 0.80 | $ | 0.08 | 10.0 | % | |||||||||||||
Diluted earnings per share | $ | 0.87 | $ | 0.79 | $ | 0.08 | 10.1 | % | |||||||||||||
Weighted average shares (basic) | 82,419 | 83,328 | |||||||||||||||||||
Weighted average shares (diluted) | 83,411 | 84,448 | |||||||||||||||||||
Six months ended June 30, | Fav (Unfav) to Prior Year | ||||||||||||||||||||
2013 | % of Sales | 2012 | % of Sales | $ | % | ||||||||||||||||
Net sales | $ | 1,446,005 | 100.0 | % | $ | 1,471,167 | 100.0 | % | $ | (25,162 | ) | (1.7 | %) | ||||||||
Cost of goods sold | 979,095 | 67.7 | % | 1,030,905 | 70.1 | % | 51,810 | 5.0 | % | ||||||||||||
Gross profit | 466,910 | 32.3 | % | 440,262 | 29.9 | % | 26,648 | 6.1 | % | ||||||||||||
Selling, general & administrative expenses | 272,106 | 18.8 | % | 251,329 | 17.1 | % | (20,777 | ) | (8.3 | %) | |||||||||||
Rationalization and asset impairment charges | 1,902 | 0.1 | % | 1,258 | 0.1 | % | (644 | ) | (51.2 | %) | |||||||||||
Operating income | 192,902 | 13.3 | % | 187,675 | 12.8 | % | 5,227 | 2.8 | % | ||||||||||||
Interest income | 1,916 | 0.1 | % | 1,732 | 0.1 | % | 184 | 10.6 | % | ||||||||||||
Equity earnings in affiliates | 2,517 | 0.2 | % | 2,698 | 0.2 | % | (181 | ) | (6.7 | %) | |||||||||||
Other income | 1,627 | 0.1 | % | 1,269 | 0.1 | % | 358 | 28.2 | % | ||||||||||||
Interest expense | (1,749 | ) | (0.1 | %) | (2,298 | ) | (0.2 | %) | 549 | 23.9 | % | ||||||||||
Income before income taxes | 197,213 | 13.6 | % | 191,076 | 13.0 | % | 6,137 | 3.2 | % | ||||||||||||
Income taxes | 57,843 | 4.0 | % | 60,562 | 4.1 | % | 2,719 | 4.5 | % | ||||||||||||
Effective tax rate | 29.3 | % | 31.7 | % | 2.4 | % | |||||||||||||||
Net income including non-controlling interests | 139,370 | 9.6 | % | 130,514 | 8.9 | % | 8,856 | 6.8 | % | ||||||||||||
Non-controlling interests in subsidiaries’ loss | (42 | ) | — | (48 | ) | — | 6 | 12.5 | % | ||||||||||||
Net income | $ | 139,412 | 9.6 | % | $ | 130,562 | 8.9 | % | $ | 8,850 | 6.8 | % | |||||||||
Basic earnings per share | $ | 1.69 | $ | 1.57 | $ | 0.12 | 7.6 | % | |||||||||||||
Diluted earnings per share | $ | 1.67 | $ | 1.54 | $ | 0.13 | 8.4 | % | |||||||||||||
Weighted average shares (basic) | 82,569 | 83,390 | |||||||||||||||||||
Weighted average shares (diluted) | 83,606 | 84,527 | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating income as reported | $ | 104,272 | $ | 96,025 | $ | 192,902 | $ | 187,675 | ||||||||
Special items (pre-tax): | ||||||||||||||||
Rationalization and asset impairment charges (1) | 851 | 1,258 | 1,902 | 1,258 | ||||||||||||
Venezuelan currency devaluation (2) | 2,538 | — | 12,198 | — | ||||||||||||
Venezuelan statutory severance obligation (3) | — | 1,381 | — | 1,381 | ||||||||||||
Adjusted operating income (4) | $ | 107,661 | $ | 98,664 | $ | 207,002 | $ | 190,314 | ||||||||
Net income as reported | $ | 72,606 | $ | 66,319 | $ | 139,412 | $ | 130,562 | ||||||||
Special items (after-tax): | ||||||||||||||||
Rationalization and asset impairment charges (1) | 579 | 915 | 1,252 | 915 | ||||||||||||
Venezuelan currency devaluation (2) | 2,538 | — | 12,198 | — | ||||||||||||
Venezuelan statutory severance obligation (3) | — | 906 | — | 906 | ||||||||||||
Adjusted net income (4) | $ | 75,723 | $ | 68,140 | $ | 152,862 | $ | 132,383 | ||||||||
Diluted earnings per share as reported | $ | 0.87 | $ | 0.79 | $ | 1.67 | $ | 1.54 | ||||||||
Special items | 0.04 | 0.02 | 0.16 | 0.03 | ||||||||||||
Adjusted diluted earnings per share (4) | $ | 0.91 | $ | 0.81 | $ | 1.83 | $ | 1.57 | ||||||||
Weighted average shares (diluted) | 83,411 | 84,448 | 83,606 | 84,527 |
(1) | The three and six months ended June 30, 2013 include net charges associated with severance and other costs from the consolidation of manufacturing operations initiated in 2012 partially offset by gains related to the sale of assets at rationalized operations. |
(2) | Represents the impact of the devaluation of the Venezuelan currency. |
(3) | Represents an unfavorable adjustment due to a change in Venezuelan labor law, which provides for increased employee severance obligations. |
(4) | Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-GAAP financial measures that management believes are important to investors to evaluate and compare the Company’s financial performance from period to period. Management uses this information in assessing and evaluating the Company’s underlying operating performance. Non-GAAP financial measures should be read in conjunction with the GAAP financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures. |
Selected Consolidated Balance Sheet Data | June 30, 2013 | December 31, 2012 | ||||||
Cash and cash equivalents | $ | 256,389 | $ | 286,464 | ||||
Total current assets | 1,134,224 | 1,132,816 | ||||||
Property, plant and equipment, net | 476,152 | 486,236 | ||||||
Total assets | 2,060,117 | 2,089,863 | ||||||
Total current liabilities | 452,685 | 440,267 | ||||||
Short-term debt (1) | 14,776 | 18,676 | ||||||
Long-term debt | 1,388 | 1,599 | ||||||
Total equity | 1,394,455 | 1,358,321 | ||||||
Net Operating Working Capital | June 30, 2013 | December 31, 2012 | ||||||
Accounts receivable | $ | 396,383 | $ | 360,662 | ||||
Inventory | 367,631 | 364,890 | ||||||
Trade accounts payable | 195,459 | 209,647 | ||||||
Net operating working capital | $ | 568,555 | $ | 515,905 | ||||
Net operating working capital to net sales (2) | 19.5 | % | 18.8 | % | ||||
Invested Capital | June 30, 2013 | December 31, 2012 | ||||||
Short-term debt (1) | $ | 14,776 | $ | 18,676 | ||||
Long-term debt | 1,388 | 1,599 | ||||||
Total debt | 16,164 | 20,275 | ||||||
Total equity | 1,394,455 | 1,358,321 | ||||||
Invested capital | $ | 1,410,619 | $ | 1,378,596 | ||||
Total debt / invested capital | 1.1 | % | 1.5 | % | ||||
Return on invested capital (3) | 18.9 | % | 18.7 | % |
(1) | Includes current portion of long-term debt. |
(2) | Net operating working capital to net sales is defined as net operating working capital divided by annualized rolling three months of sales. |
(3) | Return on invested capital is defined as rolling 12 months of earnings excluding tax-effected interest divided by invested capital. |
Three months ended June 30, | ||||||||
2013 | 2012 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 72,606 | $ | 66,319 | ||||
Non-controlling interests in subsidiaries’ (loss) earnings | (79 | ) | 46 | |||||
Net income including non-controlling interests | 72,527 | 66,365 | ||||||
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ||||||||
Rationalization and asset impairment charges | 240 | — | ||||||
Depreciation and amortization | 17,158 | 16,206 | ||||||
Equity earnings in affiliates, net | (446 | ) | (1,154 | ) | ||||
Pension expense | 7,320 | 9,193 | ||||||
Pension contributions and payments | (26,030 | ) | (19,354 | ) | ||||
Other non-cash items, net | 9,991 | 12,589 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Decrease in accounts receivable | 23,218 | 8,203 | ||||||
Decrease (increase) in inventories | 4,026 | (6,240 | ) | |||||
Decrease in trade accounts payable | (20,108 | ) | (6,958 | ) | ||||
Net change in other current assets and liabilities | 21,439 | 3,409 | ||||||
Net change in other long-term assets and liabilities | (2,136 | ) | (537 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 107,199 | 81,722 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (15,910 | ) | (13,680 | ) | ||||
Acquisition of businesses, net of cash acquired | (4,127 | ) | (27,439 | ) | ||||
Proceeds from sale of property, plant and equipment | 487 | 128 | ||||||
Other investing activities | (4,217 | ) | (1,541 | ) | ||||
NET CASH USED BY INVESTING ACTIVITIES | (23,767 | ) | (42,532 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Net change in borrowings | (1,263 | ) | (1,371 | ) | ||||
Proceeds from exercise of stock options | 3,546 | 4,772 | ||||||
Excess tax benefits from stock-based compensation | 1,476 | 2,471 | ||||||
Purchase of shares for treasury | (56,897 | ) | (20,040 | ) | ||||
Cash dividends paid to shareholders | (16,580 | ) | (14,177 | ) | ||||
Other financing activities | (2,809 | ) | — | |||||
NET CASH USED BY FINANCING ACTIVITIES | (72,527 | ) | (28,345 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (2,971 | ) | (3,720 | ) | ||||
INCREASE IN CASH AND CASH EQUIVALENTS | 7,934 | 7,125 | ||||||
Cash and cash equivalents at beginning of period | 248,455 | 300,838 | ||||||
Cash and cash equivalents at end of period | $ | 256,389 | $ | 307,963 | ||||
Cash dividends paid per share | $ | 0.20 | $ | 0.17 |
Six months ended June 30, | ||||||||
2013 | 2012 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 139,412 | $ | 130,562 | ||||
Non-controlling interests in subsidiaries’ loss | (42 | ) | (48 | ) | ||||
Net income including non-controlling interests | 139,370 | 130,514 | ||||||
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ||||||||
Rationalization and asset impairment charges | 354 | — | ||||||
Depreciation and amortization | 34,555 | 31,785 | ||||||
Equity earnings in affiliates, net | (882 | ) | (711 | ) | ||||
Pension expense | 14,935 | 17,690 | ||||||
Pension contributions and payments | (81,351 | ) | (39,049 | ) | ||||
Other non-cash items, net | 24,336 | 20,176 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Increase in accounts receivable | (43,367 | ) | (21,549 | ) | ||||
Increase in inventories | (12,308 | ) | (20,702 | ) | ||||
(Decrease) increase in trade accounts payable | (11,840 | ) | 16,383 | |||||
Net change in other current assets and liabilities | 25,621 | 22,484 | ||||||
Net change in other long-term assets and liabilities | (2,372 | ) | 3,865 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 87,051 | 160,886 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (31,048 | ) | (26,247 | ) | ||||
Acquisition of businesses, net of cash acquired | (4,676 | ) | (49,335 | ) | ||||
Proceeds from sale of property, plant and equipment | 592 | 338 | ||||||
Other investing activities | (4,217 | ) | (1,541 | ) | ||||
NET CASH USED BY INVESTING ACTIVITIES | (39,349 | ) | (76,785 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Net change in borrowings | (2,755 | ) | (85,369 | ) | ||||
Proceeds from exercise of stock options | 13,204 | 12,212 | ||||||
Excess tax benefits from stock-based compensation | 5,465 | 5,454 | ||||||
Purchase of shares for treasury | (69,677 | ) | (40,138 | ) | ||||
Cash dividends paid to shareholders | (16,580 | ) | (28,363 | ) | ||||
Other financing activities | (2,809 | ) | — | |||||
NET CASH USED BY FINANCING ACTIVITIES | (73,152 | ) | (136,204 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (4,625 | ) | (1,035 | ) | ||||
DECREASE IN CASH AND CASH EQUIVALENTS | (30,075 | ) | (53,138 | ) | ||||
Cash and cash equivalents at beginning of period | 286,464 | 361,101 | ||||||
Cash and cash equivalents at end of period | $ | 256,389 | $ | 307,963 | ||||
Cash dividends paid per share | $ | 0.20 | $ | 0.34 |
North America Welding | Europe Welding | Asia Pacific Welding | South America Welding | The Harris Products Group | Corporate / Eliminations | Consolidated | ||||||||||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||||||||
Net sales | $ | 419,069 | $ | 108,661 | $ | 69,239 | $ | 44,503 | $ | 85,960 | $ | — | $ | 727,432 | ||||||||||||||
Inter-segment sales | 35,529 | 4,330 | 4,374 | 51 | 2,674 | (46,958 | ) | — | ||||||||||||||||||||
Total | $ | 454,598 | $ | 112,991 | $ | 73,613 | $ | 44,554 | $ | 88,634 | $ | (46,958 | ) | $ | 727,432 | |||||||||||||
EBIT (1) | $ | 82,511 | $ | 9,457 | $ | 143 | $ | 8,527 | $ | 7,343 | $ | (1,538 | ) | $ | 106,443 | |||||||||||||
As a percent of total sales | 18.2 | % | 8.4 | % | 0.2 | % | 19.1 | % | 8.3 | % | 14.6 | % | ||||||||||||||||
Special items charge (2) | $ | 266 | $ | 75 | $ | 510 | $ | 2,538 | $ | — | $ | — | $ | 3,389 | ||||||||||||||
EBIT, as adjusted (4) | $ | 82,777 | $ | 9,532 | $ | 653 | $ | 11,065 | $ | 7,343 | $ | (1,538 | ) | $ | 109,832 | |||||||||||||
As a percent of total sales | 18.2 | % | 8.4 | % | 0.9 | % | 24.8 | % | 8.3 | % | 15.1 | % | ||||||||||||||||
Three months ended June 30, 2012 | ||||||||||||||||||||||||||||
Net sales | $ | 416,223 | $ | 114,437 | $ | 85,433 | $ | 37,169 | $ | 90,783 | $ | — | $ | 744,045 | ||||||||||||||
Inter-segment sales | 39,658 | 4,466 | 5,076 | 11 | 2,353 | (51,564 | ) | — | ||||||||||||||||||||
Total | $ | 455,881 | $ | 118,903 | $ | 90,509 | $ | 37,180 | $ | 93,136 | $ | (51,564 | ) | $ | 744,045 | |||||||||||||
EBIT (1) | $ | 76,479 | $ | 10,399 | $ | 3,425 | $ | 1,599 | $ | 9,041 | $ | (2,509 | ) | $ | 98,434 | |||||||||||||
As a percent of total sales | 16.8 | % | 8.7 | % | 3.8 | % | 4.3 | % | 9.7 | % | 13.2 | % | ||||||||||||||||
Special items charge (3) | $ | 77 | $ | 592 | $ | 589 | $ | 1,381 | $ | — | $ | — | $ | 2,639 | ||||||||||||||
EBIT, as adjusted (4) | $ | 76,556 | $ | 10,991 | $ | 4,014 | $ | 2,980 | $ | 9,041 | $ | (2,509 | ) | $ | 101,073 | |||||||||||||
As a percent of total sales | 16.8 | % | 9.2 | % | 4.4 | % | 8.0 | % | 9.7 | % | 13.6 | % | ||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||||||||
Net sales | $ | 838,623 | $ | 219,152 | $ | 139,278 | $ | 80,877 | $ | 168,075 | $ | — | $ | 1,446,005 | ||||||||||||||
Inter-segment sales | 64,514 | 8,609 | 8,758 | 71 | 4,898 | (86,850 | ) | — | ||||||||||||||||||||
Total | $ | 903,137 | $ | 227,761 | $ | 148,036 | $ | 80,948 | $ | 172,973 | $ | (86,850 | ) | $ | 1,446,005 | |||||||||||||
EBIT (1) | $ | 158,311 | $ | 20,164 | $ | 2,239 | $ | 3,979 | $ | 14,494 | $ | (2,141 | ) | $ | 197,046 | |||||||||||||
As a percent of total sales | 17.5 | % | 8.9 | % | 1.5 | % | 4.9 | % | 8.4 | % | 13.6 | % | ||||||||||||||||
Special items charge (2) | $ | 1,126 | $ | 69 | $ | 707 | $ | 12,198 | $ | — | $ | — | $ | 14,100 | ||||||||||||||
EBIT, as adjusted (4) | $ | 159,437 | $ | 20,233 | $ | 2,946 | $ | 16,177 | $ | 14,494 | $ | (2,141 | ) | $ | 211,146 | |||||||||||||
As a percent of total sales | 17.7 | % | 8.9 | % | 2.0 | % | 20.0 | % | 8.4 | % | 14.6 | % | ||||||||||||||||
Six months ended June 30, 2012 | ||||||||||||||||||||||||||||
Net sales | $ | 797,552 | $ | 240,240 | $ | 177,996 | $ | 77,007 | $ | 178,372 | $ | — | $ | 1,471,167 | ||||||||||||||
Inter-segment sales | 73,200 | 8,917 | 8,893 | 11 | 4,736 | (95,757 | ) | — | ||||||||||||||||||||
Total | $ | 870,752 | $ | 249,157 | $ | 186,889 | $ | 77,018 | $ | 183,108 | $ | (95,757 | ) | $ | 1,471,167 | |||||||||||||
EBIT (1) | $ | 145,998 | $ | 23,210 | $ | 5,998 | $ | 4,504 | $ | 16,194 | $ | (4,262 | ) | $ | 191,642 | |||||||||||||
As a percent of total sales | 16.8 | % | 9.3 | % | 3.2 | % | 5.8 | % | 8.8 | % | 13.0 | % | ||||||||||||||||
Special items charge (3) | $ | 77 | $ | 592 | $ | 589 | $ | 1,381 | $ | — | $ | — | $ | 2,639 | ||||||||||||||
EBIT, as adjusted (4) | $ | 146,075 | $ | 23,802 | $ | 6,587 | $ | 5,885 | $ | 16,194 | $ | (4,262 | ) | $ | 194,281 | |||||||||||||
As a percent of total sales | 16.8 | % | 9.6 | % | 3.5 | % | 7.6 | % | 8.8 | % | 13.2 | % |
(1) | EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. |
(2) | Special items in the three and six months ended June 30, 2013 include net rationalization and asset impairment charges and the impact of the devaluation of the Venezuelan currency. |
(3) | Special items include net rationalization and asset impairment charges and an unfavorable adjustment due to a change in Venezuelan labor law, which provides for increased employee severance obligations. |
(4) | The primary profit measure used by management to assess segment performance is EBIT, as adjusted. EBIT for each operating segment is adjusted for special items to derive EBIT, as adjusted. |
Change in Net Sales due to: | ||||||||||||||||||||||||
Net Sales 2012 | Volume | Acquisitions | Price | Foreign Exchange | Net Sales 2013 | |||||||||||||||||||
Operating Segments | ||||||||||||||||||||||||
North America Welding | $ | 416,223 | $ | (20,571 | ) | $ | 22,954 | $ | 1,354 | $ | (891 | ) | $ | 419,069 | ||||||||||
Europe Welding | 114,437 | (5,624 | ) | — | 789 | (941 | ) | 108,661 | ||||||||||||||||
Asia Pacific Welding | 85,433 | (15,177 | ) | — | (1,063 | ) | 46 | 69,239 | ||||||||||||||||
South America Welding | 37,169 | 3,060 | — | 6,005 | (1,731 | ) | 44,503 | |||||||||||||||||
The Harris Products Group | 90,783 | 1,997 | — | (6,356 | ) | (464 | ) | 85,960 | ||||||||||||||||
Consolidated | $ | 744,045 | $ | (36,315 | ) | $ | 22,954 | $ | 729 | $ | (3,981 | ) | $ | 727,432 | ||||||||||
% Change | ||||||||||||||||||||||||
North America Welding | (4.9 | %) | 5.5 | % | 0.3 | % | (0.2 | %) | 0.7 | % | ||||||||||||||
Europe Welding | (4.9 | %) | — | 0.7 | % | (0.8 | %) | (5.0 | %) | |||||||||||||||
Asia Pacific Welding | (17.8 | %) | — | (1.2 | %) | 0.1 | % | (19.0 | %) | |||||||||||||||
South America Welding | 8.2 | % | — | 16.2 | % | (4.7 | %) | 19.7 | % | |||||||||||||||
The Harris Products Group | 2.2 | % | — | (7.0 | %) | (0.5 | %) | (5.3 | %) | |||||||||||||||
Consolidated | (4.9 | %) | 3.1 | % | 0.1 | % | (0.5 | %) | (2.2 | %) |
Change in Net Sales due to: | ||||||||||||||||||||||||
Net Sales 2012 | Volume | Acquisitions | Price | Foreign Exchange | Net Sales 2013 | |||||||||||||||||||
Operating Segments | ||||||||||||||||||||||||
North America Welding | $ | 797,552 | $ | (27,921 | ) | $ | 63,214 | $ | 6,630 | $ | (852 | ) | $ | 838,623 | ||||||||||
Europe Welding | 240,240 | (14,631 | ) | — | (3,187 | ) | (3,270 | ) | 219,152 | |||||||||||||||
Asia Pacific Welding | 177,996 | (35,322 | ) | — | (2,984 | ) | (412 | ) | 139,278 | |||||||||||||||
South America Welding | 77,007 | (261 | ) | — | 7,997 | (3,866 | ) | 80,877 | ||||||||||||||||
The Harris Products Group | 178,372 | (1,810 | ) | — | (6,815 | ) | (1,672 | ) | 168,075 | |||||||||||||||
Consolidated | $ | 1,471,167 | $ | (79,945 | ) | $ | 63,214 | $ | 1,641 | $ | (10,072 | ) | $ | 1,446,005 | ||||||||||
% Change | ||||||||||||||||||||||||
North America Welding | (3.5 | %) | 7.9 | % | 0.8 | % | (0.1 | %) | 5.1 | % | ||||||||||||||
Europe Welding | (6.1 | %) | — | (1.3 | %) | (1.4 | %) | (8.8 | %) | |||||||||||||||
Asia Pacific Welding | (19.8 | %) | — | (1.7 | %) | (0.2 | %) | (21.8 | %) | |||||||||||||||
South America Welding | (0.3 | %) | — | 10.4 | % | (5.0 | %) | 5.0 | % | |||||||||||||||
The Harris Products Group | (1.0 | %) | — | (3.8 | %) | (0.9 | %) | (5.8 | %) | |||||||||||||||
Consolidated | (5.4 | %) | 4.3 | % | 0.1 | % | (0.7 | %) | (1.7 | %) |