EX-99.1 2 a12-16729_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Media Contact:  Roy L. Morrow (216) 383-4893

Roy_Morrow@lincolnelectric.com

 

Lincoln Electric Reports Second Consecutive Record Sales Quarter of $744.0 Million;

2Q’12 Sales increase of 6.4%;

2Q Operating income increase of 20.0%;

2Q EPS of $0.79, $0.81 as adjusted, an increase of 16.2%, 19.1% as adjusted

 

 

Second Quarter and First Half 2012 Highlights

 

§     Sales were $744.0 million, an increase of 6.4% from the Second Quarter 2011; First Half 2012 Sales were $1.5 billion, an increase of 13.3% from 2011

 

§     Operating income increased 20.0% to $96.0 million, or 12.9% of sales, from $80.0 million, or 11.4% of sales, in the Second Quarter 2011; Adjusted operating income increased 23.4% to $98.7 million or 13.3% of sales

 

§     Net income increased 16.3% to $66.3 million, or $0.79 per diluted share, from $57.0 million, or $0.68 per diluted share, in the Second Quarter 2011; Adjusted net income increased 19.6% to $68.1 million, or $0.81 per diluted share, from $57.0 million, or $0.68 per diluted share, in the Second Quarter 2011

 

§     Net cash provided by operating activities in the Second Quarter 2012 increased $52.9 million, or 183.4%, to $81.7 million; Net cash provided by operating activities in the First Half 2012 increased $115.3 million, or 253.0%, to $160.9 million

 

 

 

CLEVELAND, Ohio, U.S.A., July 30, 2012 -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported second quarter 2012 net income of $66.3 million, or $0.79 per diluted share.  Adjusted net income was $68.1 million, or $0.81 per diluted share, compared to adjusted net income of $57.0 million, or $0.68 per diluted share, in the comparable 2011 period.

 

Sales were $744.0 million in the second quarter 2012 versus $699.3 million in the comparable 2011 period, an increase of 6.4%.  Operating income for the second quarter increased $16.0 million to $96.0 million, or 12.9% of sales, from $80.0 million, or 11.4% of sales, in the comparable 2011 period.  The effective tax rate for the second quarter 2012 was 32.4% compared with 30.0% in the same period of 2011.

 

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Lincoln Electric Reports Second Quarter 2012 Financial Results

 

Sales for the six months ended June 30, 2012 were $1.5 billion versus $1.3 billion in the comparable 2011 period, an increase of 13.3%.  Operating income for the six months ended June 30, 2012 increased $48.2 million to $187.7 million, or 12.8% of sales, from $139.5 million, or 10.7% of sales, in the comparable 2011 period.

 

Net income for the six months ended June 30, 2012 was $130.6 million, or $1.54 per diluted share, compared with net income of $103.9 million, or $1.23 per diluted share, in the comparable 2011 period.  Adjusted net income was $132.4 million, or $1.57 per diluted share, compared to adjusted net income of $99.3 million, or $1.18 per diluted share, in the comparable 2011 period.  The effective tax rate for the six months ended June 30, 2012 was 31.7% compared with 26.8% in 2011.  The six months ended June 30, 2011 included a favorable $4.8 million tax adjustment for tax audit settlements.

 

“We are pleased to report our second consecutive quarter of record sales,” said John M. Stropki, Chairman and Chief Executive Officer.  “Sales levels, overall profitability and operating cash flows all improved during the quarter despite the ongoing economic challenges in many of our key markets.  The continued strength in operating performance was driven by the strong performance in North America, improved product mix and better pricing dynamics in many of our business segments.

 

“We are cautious entering the second half of 2012 as we face increased uncertainty in both the political and economic environments around the world.  Although our North American markets remain strong, we have seen demand softening in most of our international markets and global economic growth forecasts continue to weaken.  Our global growth strategies, which include acquisitions, new product introductions and increasing our commercial presence worldwide, will help us offset the weak economic conditions.  Our solid liquidity and ongoing attention to continuous improvements in our operations will provide the increased operating leverage and flexibility required to execute our long-term strategic objectives.”

 

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Lincoln Electric Reports Second Quarter 2012 Financial Results

 

Net cash provided by operating activities increased $52.9 million to $81.7 million in the second quarter from $28.8 million for the comparable period in 2011.  During the quarter, the Company returned $34.2 million to shareholders through the payment of $14.2 million in dividends and the repurchase of $20.0 million, or 428,300 of the Company’s common shares, for treasury.  The Company also invested $27.4 million in acquisitions and voluntarily contributed $18.0 million to its U.S. pension plans during the quarter.

 

Net cash provided by operating activities increased $115.3 million to $160.9 million in the six months ended June 30, 2012 from $45.6 million for the comparable period in 2011.  During the period, the Company repaid its $80.0 million senior unsecured note.  The Company also returned $68.5 million to shareholders through the payment of $28.4 million in dividends and the repurchase of $40.1 million, or 860,684 of the Company’s common shares, for treasury during the period.  The Company also invested $49.3 million in acquisitions and voluntarily contributed $36.0 million to its U.S. pension plans.

 

The Company’s Board of Directors declared a quarterly cash dividend of $0.17 per share, which was paid on July 13, 2012 to holders of record as of June 29, 2012.

 

Financial results for the second quarter 2012 can also be obtained at http://www.lincolnelectric.com/InvestorNews.

 

A conference call to discuss the second quarter 2012 financial results is scheduled for today, Monday, July 30, 2012, at 10:00 a.m., Eastern Time.  An audio webcast of the call is accessible through the Company’s website at http://www.lincolnelectric.com/InvestorWebcasts/.

 

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.  Please refer to the attached schedule for a reconciliation of non-GAAP financial measures to the related GAAP financial measures.

 

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Lincoln Electric Reports Second Quarter 2012 Financial Results

 

Lincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxyfuel cutting equipment and has a leading global position in the brazing and soldering alloys market.  Headquartered in Cleveland, Ohio, Lincoln has 45 manufacturing locations, including operations and joint ventures in 20 countries and a worldwide network of distributors and sales offices covering more than 160 countries.  For more information about Lincoln Electric and its products and services, visit the Company’s website at http://www.lincolnelectric.com.

 

The Company’s expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements reflect management’s current expectations and involve a number of risks and uncertainties.  Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning.  Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results.  The factors include, but are not limited to: general economic and market conditions; the effectiveness of operating initiatives; currency exchange and interest rates; adverse outcome of pending or potential litigation; possible acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; and the possible effects of events beyond our control, such as political unrest, acts of terror and natural disasters, on the Company or its customers, suppliers and the economy in general.  For additional discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K.

 

#073012#

 


 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

 

Consolidated Statements of Income

 

 

 

Three Months Ended June 30,

 

Fav (Unfav) to Prior Year

 

 

 

2012

 

% of Sales

 

2011

 

% of Sales

 

$

 

%

 

Net sales

 

$

744,045

 

100.0%

 

$

699,293

 

100.0%

 

$

44,752

 

6.4%

 

Cost of goods sold

 

519,048

 

69.8%

 

503,789

 

72.0%

 

(15,259

)

(3.0%

)

Gross profit

 

224,997

 

30.2%

 

195,504

 

28.0%

 

29,493

 

15.1%

 

Selling, general & administrative expenses

 

127,714

 

17.2%

 

115,546

 

16.5%

 

(12,168

)

(10.5%

)

Rationalization and asset impairment charges (gains)

 

1,258

 

0.2%

 

(75

)

—

 

(1,333

)

(1777.3%

)

Operating income

 

96,025

 

12.9%

 

80,033

 

11.4%

 

15,992

 

20.0%

 

Interest income

 

849

 

0.1%

 

661

 

0.1%

 

188

 

28.4%

 

Equity earnings in affiliates

 

2,006

 

0.3%

 

1,715

 

0.2%

 

291

 

17.0%

 

Other income

 

403

 

0.1%

 

712

 

0.1%

 

(309

)

(43.4%

)

Interest expense

 

(1,126

)

(0.2%

)

(1,627

)

(0.2%

)

501

 

30.8%

 

Income before income taxes

 

98,157

 

13.2%

 

81,494

 

11.7%

 

16,663

 

20.4%

 

Income taxes

 

31,792

 

4.3%

 

24,472

 

3.5%

 

(7,320

)

(29.9%

)

Effective tax rate

 

32.4%

 

 

 

30.0%

 

 

 

(2.4%

)

 

 

Net income including noncontrolling interests

 

66,365

 

8.9%

 

57,022

 

8.2%

 

9,343

 

16.4%

 

Noncontrolling interests in subsidiaries’ earnings

 

46

 

—

 

9

 

—

 

37

 

411.1%

 

Net income

 

$

66,319

 

8.9%

 

$

57,013

 

8.2%

 

$

9,306

 

16.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.80

 

 

 

$

0.69

 

 

 

$

0.11

 

15.9%

 

Diluted earnings per share

 

$

0.79

 

 

 

$

0.68

 

 

 

$

0.11

 

16.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

83,328

 

 

 

83,037

 

 

 

 

 

 

 

Weighted average shares (diluted)

 

84,448

 

 

 

84,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Fav (Unfav) to Prior Year

 

 

 

2012

 

% of Sales

 

2011

 

% of Sales

 

$

 

%

 

Net sales

 

$

1,471,167

 

100.0%

 

$

1,298,472

 

100.0%

 

$

172,695

 

13.3%

 

Cost of goods sold

 

1,030,905

 

70.1%

 

941,530

 

72.5%

 

(89,375

)

(9.5%

)

Gross profit

 

440,262

 

29.9%

 

356,942

 

27.5%

 

83,320

 

23.3%

 

Selling, general & administrative expenses

 

251,329

 

17.1%

 

217,165

 

16.7%

 

(34,164

)

(15.7%

)

Rationalization and asset impairment charges (gains)

 

1,258

 

0.1%

 

282

 

—

 

(976

)

(346.1%

)

Operating income

 

187,675

 

12.8%

 

139,495

 

10.7%

 

48,180

 

34.5%

 

Interest income

 

1,732

 

0.1%

 

1,269

 

0.1%

 

463

 

36.5%

 

Equity earnings in affiliates

 

2,698

 

0.2%

 

2,545

 

0.2%

 

153

 

6.0%

 

Other income

 

1,269

 

0.1%

 

2,007

 

0.2%

 

(738

)

(36.8%

)

Interest expense

 

(2,298

)

(0.2%

)

(3,285

)

(0.3%

)

987

 

30.0%

 

Income before income taxes

 

191,076

 

13.0%

 

142,031

 

10.9%

 

49,045

 

34.5%

 

Income taxes

 

60,562

 

4.1%

 

38,067

 

2.9%

 

(22,495

)

(59.1%

)

Effective tax rate

 

31.7%

 

 

 

26.8%

 

 

 

(4.9%

)

 

 

Net income including noncontrolling interests

 

130,514

 

8.9%

 

103,964

 

8.0%

 

26,550

 

25.5%

 

Noncontrolling interests in subsidiaries’ (loss) earnings

 

(48

)

—

 

41

 

—

 

(89

)

(217.1%

)

Net income

 

$

130,562

 

8.9%

 

$

103,923

 

8.0%

 

$

26,639

 

25.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.57

 

 

 

$

1.25

 

 

 

$

0.32

 

25.6%

 

Diluted earnings per share

 

$

1.54

 

 

 

$

1.23

 

 

 

$

0.31

 

25.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

83,390

 

 

 

83,414

 

 

 

 

 

 

 

Weighted average shares (diluted)

 

84,527

 

 

 

84,493

 

 

 

 

 

 

 

 


 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

 

Non-GAAP Financial Measures

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Operating income as reported

 

$

96,025

 

$

80,033

 

$

187,675

 

$

139,495

 

Special items (pre-tax):

 

 

 

 

 

 

 

 

 

Rationalization and asset impairment charges (gains) (1)

 

1,258

 

(75

)

1,258

 

282

 

Venezuelan statutory severance obligation (2)

 

1,381

 

—

 

1,381

 

—

 

Adjusted operating income (4)

 

$

98,664

 

$

79,958

 

$

190,314

 

$

139,777

 

 

 

 

 

 

 

 

 

 

 

Net income as reported

 

$

66,319

 

$

57,013

 

$

130,562

 

$

103,923

 

Special items (after-tax):

 

 

 

 

 

 

 

 

 

Rationalization and asset impairment charges (gains) (1)

 

915

 

(44

)

915

 

237

 

Venezuelan statutory severance obligation (2)

 

906

 

—

 

906

 

—

 

Adjustment for tax audit settlements (3)

 

—

 

—

 

—

 

(4,844

)

Adjusted net income (4)

 

$

68,140

 

$

56,969

 

$

132,383

 

$

99,316

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share as reported

 

$

0.79

 

$

0.68

 

$

1.54

 

$

1.23

 

Special items

 

0.02

 

—

 

0.03

 

(0.05

)

Adjusted diluted earnings per share (4)

 

$

0.81

 

$

0.68

 

$

1.57

 

$

1.18

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (diluted)

 

84,448

 

84,105

 

84,527

 

84,493

 

 

(1)       The three and six month periods ended June 30, 2012 include charges associated with severance and other costs from the consolidation of manufacturing operations initiated in 2012.  The three and six month periods ended June 30, 2011 include charges associated with severance and other costs from the consolidation of manufacturing operations initiated in 2009 offset by gains related to the sale of assets at rationalized operations.

 

(2)       Represents an unfavorable adjustment due to a change in Venezuelan labor law which provides for increased employee severance obligations.

 

(3)       Represents a favorable adjustment for tax audit settlements.

 

(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.

 


 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)

Balance Sheet Highlights

 

 

 

June 30,

 

December 31,

 

Selected Consolidated Balance Sheet Data

 

2012

 

2011

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

307,963

 

$

361,101

 

Total current assets

 

1,236,340

 

1,219,270

 

Property, plant and equipment, net

 

476,478

 

470,451

 

Total assets

 

2,021,988

 

1,976,776

 

 

 

 

 

 

 

Total current liabilities

 

459,420

 

471,042

 

Short-term debt (1)

 

20,733

 

101,418

 

Long-term debt

 

2,396

 

1,960

 

Total equity

 

1,281,008

 

1,193,242

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

Net Operating Working Capital

 

2012

 

2011

 

 

 

 

 

 

 

Accounts receivable

 

$

422,532

 

$

386,197

 

Inventory

 

400,562

 

373,238

 

Trade accounts payable

 

202,413

 

176,312

 

Net operating working capital

 

$

620,681

 

$

583,123

 

 

 

 

 

 

 

Net operating working capital to net sales (2)

 

20.9%

 

21.0%

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

Invested Capital

 

2012

 

2011

 

 

 

 

 

 

 

Short-term debt (1)

 

$

20,733

 

$

101,418

 

Long-term debt

 

2,396

 

1,960

 

Total debt

 

23,129

 

103,378

 

Total equity

 

1,281,008

 

1,193,242

 

Invested capital

 

$

1,304,137

 

$

1,296,620

 

 

 

 

 

 

 

Total debt / invested capital

 

1.8%

 

8.0%

 

Return on invested capital (3)

 

18.8%

 

16.9%

 

 

(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.

 


 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

 

Consolidated Statements of Cash Flows

 

 

 

Three Months Ended June 30,

 

 

 

2012

 

2011

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

 

$

66,319

 

$

57,013

 

Noncontrolling interests in subsidiaries’ earnings

 

46

 

9

 

Net income including noncontrolling interests

 

66,365

 

57,022

 

Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operating activities:

 

 

 

 

 

Asset impairment charges (gains)

 

—

 

(204

)

Depreciation and amortization

 

16,206

 

16,143

 

Equity earnings in affiliates, net

 

(1,154

)

(196

)

Other non-cash items, net

 

20,315

 

5,592

 

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

Decrease (increase) in accounts receivable

 

8,203

 

(32,399

)

Increase in inventories

 

(6,240

)

(49,663

)

(Decrease) increase in trade accounts payable

 

(6,958

)

10,484

 

Decrease in accrued pensions

 

(17,887

)

(9,140

)

Net change in other current assets and liabilities

 

3,409

 

31,815

 

Net change in other long-term assets and liabilities

 

(537

)

(616

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

81,722

 

28,838

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Capital expenditures

 

(13,680

)

(13,867

)

Acquisition of businesses, net of cash acquired

 

(27,439

)

—

 

Proceeds from sale of property, plant and equipment

 

128

 

707

 

Other investing activities

 

(1,541

)

—

 

NET CASH USED BY INVESTING ACTIVITIES

 

(42,532

)

(13,160

)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Net change in borrowings

 

(1,371

)

(167

)

Proceeds from exercise of stock options

 

4,772

 

3,335

 

Tax benefit from exercise of stock options

 

2,471

 

1,312

 

Purchase of shares for treasury

 

(20,040

)

(12,404

)

Cash dividends paid to shareholders

 

(14,177

)

(13,018

)

NET CASH USED BY FINANCING ACTIVITIES

 

(28,345

)

(20,942

)

 

 

 

 

 

 

Effect of exchange rate changes on Cash and cash equivalents

 

(3,720

)

1,764

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

7,125

 

(3,500

)

Cash and cash equivalents at beginning of period

 

300,838

 

341,415

 

Cash and cash equivalents at end of period

 

$

307,963

 

$

337,915

 

 

 

 

 

 

 

Cash dividends paid per share

 

$

0.17

 

$

0.155

 

 


 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

 

Consolidated Statements of Cash Flows

 

 

 

Six Months Ended June 30,

 

 

 

2012

 

2011

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

 

$

130,562

 

$

103,923

 

Noncontrolling interests in subsidiaries’ (loss) earnings

 

(48

)

41

 

Net income including noncontrolling interests

 

130,514

 

103,964

 

Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operating activities:

 

 

 

 

 

Asset impairment charges (gains)

 

—

 

23

 

Depreciation and amortization

 

31,785

 

31,349

 

Equity earnings in affiliates, net

 

(711

)

(558

)

Other non-cash items, net

 

35,674

 

24,432

 

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

Increase in accounts receivable

 

(21,549

)

(75,723

)

Increase in inventories

 

(20,702

)

(111,727

)

Increase in trade accounts payable

 

16,383

 

66,037

 

Decrease in accrued pensions

 

(36,857

)

(16,544

)

Net change in other current assets and liabilities

 

22,484

 

27,385

 

Net change in other long-term assets and liabilities

 

3,865

 

(3,062

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

160,886

 

45,576

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Capital expenditures

 

(26,247

)

(29,370

)

Acquisition of businesses, net of cash acquired

 

(49,335

)

(17,881

)

Proceeds from sale of property, plant and equipment

 

338

 

849

 

Other investing activities

 

(1,541

)

—

 

NET CASH USED BY INVESTING ACTIVITIES

 

(76,785

)

(46,402

)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Net change in borrowings

 

(85,369

)

(1,486

)

Proceeds from exercise of stock options

 

12,212

 

6,199

 

Tax benefit from exercise of stock options

 

5,454

 

2,027

 

Purchase of shares for treasury

 

(40,138

)

(13,309

)

Cash dividends paid to shareholders

 

(28,363

)

(26,005

)

NET CASH USED BY FINANCING ACTIVITIES

 

(136,204

)

(32,574

)

 

 

 

 

 

 

Effect of exchange rate changes on Cash and cash equivalents

 

(1,035

)

5,122

 

DECREASE IN CASH AND CASH EQUIVALENTS

 

(53,138

)

(28,278

)

Cash and cash equivalents at beginning of period

 

361,101

 

366,193

 

Cash and cash equivalents at end of period

 

$

307,963

 

$

337,915

 

 

 

 

 

 

 

Cash dividends paid per share

 

$

0.34

 

$

0.31

 

 


 

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

 

 

 

North

 

 

 

 

 

South

 

The Harris

 

 

 

 

 

 

 

America

 

Europe

 

Asia Pacific

 

America

 

Products

 

Corporate /

 

 

 

 

 

Welding

 

Welding

 

Welding

 

Welding

 

Group

 

Eliminations

 

Consolidated

 

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 (gain) (2)

 

$

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%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

321,656

 

$

139,248

 

$

102,721

 

$

37,769

 

$

97,899

 

$

—

 

$

699,293

 

Inter-segment sales

 

37,222

 

6,302

 

3,397

 

120

 

2,017

 

(49,058

)

—

 

Total

 

$

358,878

 

$

145,550

 

$

106,118

 

$

37,889

 

$

99,916

 

$

(49,058

)

$

699,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (1)

 

$

58,120

 

$

11,039

 

$

1,365

 

$

3,527

 

$

9,197

 

$

(788

)

$

82,460

 

As a percent of total sales

 

16.2%

 

7.6%

 

1.3%

 

9.3%

 

9.2%

 

 

 

11.8%

 

Special items charge (gain) (3)

 

$

—

 

$

34

 

$

(109

)

$

—

 

$

—

 

$

—

 

$

(75

)

EBIT, as adjusted (4)

 

$

58,120

 

$

11,073

 

$

1,256

 

$

3,527

 

$

9,197

 

$

(788

)

$

82,385

 

As a percent of total sales

 

16.2%

 

7.6%

 

1.2%

 

9.3%

 

9.2%

 

 

 

11.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (gain) (2)

 

$

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%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended
June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

602,413

 

$

253,456

 

$

190,281

 

$

71,842

 

$

180,480

 

$

—

 

$

1,298,472

 

Inter-segment sales

 

72,349

 

10,137

 

6,610

 

120

 

4,250

 

(93,466

)

—

 

Total

 

$

674,762

 

$

263,593

 

$

196,891

 

$

71,962

 

$

184,730

 

$

(93,466

)

$

1,298,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (1)

 

$

104,756

 

$

16,593

 

$

1,492

 

$

5,575

 

$

15,740

 

$

(109

)

$

144,047

 

As a percent of total sales

 

15.5%

 

6.3%

 

0.8%

 

7.7%

 

8.5%

 

 

 

11.1%

 

Special items charge (gain) (3)

 

$

—

 

$

392

 

$

(110

)

$

—

 

$

—

 

$

—

 

$

282

 

EBIT, as adjusted (4)

 

$

104,756

 

$

16,985

 

$

1,382

 

$

5,575

 

$

15,740

 

$

(109

)

$

144,329

 

As a percent of total sales

 

15.5%

 

6.4%

 

0.7%

 

7.7%

 

8.5%

 

 

 

11.1%

 

 

(1)   EBIT is defined as Operating income plus Equity earnings in affiliates and Other income.

 

(2)   Special items include rationalization and asset impairment charges (gains) and an unfavorable adjustment  due to a change in Venezuelan labor law which provides for increased employee severance obligations.

 

(3)   Special items include rationalization and asset impairment charges (gains).

 

(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.

 


 

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited)

 

Three Months Ended June 30th Change in Net Sales by Segment

 

 

 

 

 

Change in Net Sales due to:

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

Foreign

 

Net Sales

 

 

 

2011

 

Volume

 

Acquisitions

 

Price

 

Exchange

 

2012

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Welding

 

$

321,656

 

$

42,862

 

$

44,239

 

$

10,945

 

$

(3,479

)

$

416,223

 

Europe Welding

 

139,248

 

(12,681

)

—

 

2,394

 

(14,524

)

114,437

 

Asia Pacific Welding

 

102,721

 

(17,544

)

—

 

1,219

 

(963

)

85,433

 

South America Welding

 

37,769

 

(1,940

)

—

 

4,518

 

(3,178

)

37,169

 

The Harris Products Group

 

97,899

 

3,923

 

—

 

(7,681

)

(3,358

)

90,783

 

Consolidated

 

$

699,293

 

$

14,620

 

$

44,239

 

$

11,395

 

$

(25,502

)

$

744,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Welding

 

 

 

13.3%

 

13.8%

 

3.4%

 

(1.1%

)

29.4%

 

Europe Welding

 

 

 

(9.1%

)

—

 

1.7%

 

(10.4%

)

(17.8%

)

Asia Pacific Welding

 

 

 

(17.1%

)

—

 

1.2%

 

(0.9%

)

(16.8%

)

South America Welding

 

 

 

(5.1%

)

—

 

12.0%

 

(8.4%

)

(1.6%

)

The Harris Products Group

 

 

 

4.0%

 

—

 

(7.8%

)

(3.4%

)

(7.3%

)

Consolidated

 

 

 

2.1%

 

6.3%

 

1.6%

 

(3.6%

)

6.4%

 

 

Six Months Ended June 30th Change in Net Sales by Segment

 

 

 

 

 

Change in Net Sales due to:

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

Foreign

 

Net Sales

 

 

 

2011

 

Volume

 

Acquisitions

 

Price

 

Exchange

 

2012

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Welding

 

$

602,413

 

$

106,141

 

$

71,557

 

$

21,785

 

$

(4,344

)

$

797,552

 

Europe Welding

 

253,456

 

(8,881

)

8,322

 

7,756

 

(20,413

)

240,240

 

Asia Pacific Welding

 

190,281

 

(17,162

)

—

 

3,110

 

1,767

 

177,996

 

South America Welding

 

71,842

 

1,653

 

—

 

7,576

 

(4,064

)

77,007

 

The Harris Products Group

 

180,480

 

9,301

 

—

 

(6,911

)

(4,498

)

178,372

 

Consolidated

 

$

1,298,472

 

$

91,052

 

$

79,879

 

$

33,316

 

$

(31,552

)

$

1,471,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

North America Welding

 

 

 

17.6%

 

11.9%

 

3.6%

 

(0.7%

)

32.4%

 

Europe Welding

 

 

 

(3.5%

)

3.3%

 

3.1%

 

(8.1%

)

(5.2%

)

Asia Pacific Welding

 

 

 

(9.0%

)

—

 

1.6%

 

0.9%

 

(6.5%

)

South America Welding

 

 

 

2.3%

 

—

 

10.5%

 

(5.7%

)

7.2%

 

The Harris Products Group

 

 

 

5.2%

 

—

 

(3.8%

)

(2.5%

)

(1.2%

)

Consolidated

 

 

 

7.0%

 

6.2%

 

2.6%

 

(2.4%

)

13.3%