Lincoln Electric reports 2Q'10 Sales increase of 24.8%; Adjusted operating income increase of 101.2%; Adjusted EPS increase of 126.5% to $0.77
CLEVELAND, July 27 /PRNewswire-FirstCall/ --
Second Quarter and First Half 2010 Highlights
- Sales were $515.6 million, an increase of 24.8% from the Second Quarter 2009; First Half sales were $986.5 million, an increase of 19.6% from the First Half 2009
- Adjusted operating income increased to $49.8 million from $24.8 million or an increase of 101.2% from the Second Quarter 2009
- Adjusted operating income increased to $85.4 million from $37.4 million or an increase of 128.6% from the First Half 2009
- Adjusted net income was $32.9 million, or $0.77 per diluted share compared with $14.5 million, or $0.34 per diluted share in the Second Quarter 2009
- Adjusted net income was $57.7 million, or $1.35 per diluted share compared with $18.3 million, or $0.43 per diluted share in the First Half 2009
Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported 2010 second quarter net income of $32.5 million, or $0.76 per diluted share, on sales of $515.6 million. Operating income for the second quarter increased sequentially to $51.1 million, or 9.9% of sales, from $34.7 million, or 7.4% of sales, in the first quarter of 2010. Adjusted operating income in the quarter was $49.8 million or 9.7% of sales.
Sales were $515.6 million in the second quarter 2010 versus $413.3 million in the comparable 2009 period, an increase of 24.8%.
Net income for the second quarter 2010 was $32.5 million, or $0.76 per diluted share, compared with net income of $15.1 million, or $0.35 per diluted share, in the second quarter of 2009. Adjusted net income was $32.9 million, or $0.77 per diluted share, compared with $14.5 million, or $0.34 per diluted share, in the second quarter of 2009. The effective tax rate for the second quarter of 2010 was 33.5% compared with 35.9% in 2009.
Adjusted operating income for the second quarter excludes pre-tax rationalization gains of $3.6 million primarily related to gains on the disposal of assets and a charge of $2.3 million related to the Venezuelan functional currency change and devaluation of the Venezuelan currency, the bolivar, in cost of goods sold.
Adjusted net income for the second quarter 2010 excludes after-tax rationalization gains of $3.8 million, a charge of $2.3 million related to the Venezuelan functional currency change and devaluation of the bolivar and a charge of $1.8 million in noncontrolling interest on a gain on the disposal of assets.
"Our second quarter results were excellent and demonstrated a steady and significant improvement in operating results," said John M. Stropki, Chairman and Chief Executive Officer. "The improving economic environment and important new product introductions delivered a significant increase in sales. Our cost improvement initiatives resulting from the rationalization actions taken throughout 2009, early 2010 and our ongoing strategic capital investments drove increases in margins.
"While demand levels have significantly improved in most markets and geographic regions on a year-over-year basis, volume trends are stabilizing. Although recent economic forecasts are more guarded, we remain cautiously optimistic as we continue to pursue market share gains. We believe that our strong financial position will continue to provide the required flexibility to execute our long-term strategic objectives to the benefit of our shareholders."
Net cash provided by operating activities was $32.1 million in the second quarter compared with $62.6 million for the comparable period in 2009.
Sales for the first half of 2010 were $986.5 million versus $825.0 million in the comparable 2009 period, an increase of 19.6%.
Net income for the first six months of 2010 was $56.3 million, or $1.32 per diluted share, compared with net income of $11.5 million, or $0.27 per diluted share, for the comparable period in 2009. Adjusted net income was $57.7 million, or $1.35 per diluted share, compared with $18.3 million, or $0.43 per diluted share, in the first half of 2009. The 2010 first half effective tax rate was 32.7% compared with 46.4% in 2009.
Adjusted operating income for the first half of 2010 excludes pre-tax rationalization gains of $2.8 million primarily related to gains on the disposal of assets, a charge of $4.9 million related to the Venezuelan functional currency change and devaluation of the bolivar in cost of goods sold and foreign currency gains of $2.6 million related to the Venezuelan functional currency change and devaluation of the bolivar in selling, general and administrative expenses.
Adjusted net income for the first half of 2010 excludes after-tax rationalization gains of $3.2 million, a charge of $2.7 million related to the Venezuelan functional currency change and devaluation of the bolivar and a charge of $1.8 million in noncontrolling interest on a gain on the disposal of assets.
Net cash provided by operating activities was $47.7 million in the first six months of 2010 compared with $134.2 million for the comparable period in 2009. The Company returned $36.7 million to shareholders through the payment of $23.8 million in dividends and the repurchase of $12.9 million of the Company's shares for treasury during the first half of 2010.
The Company's Board of Directors declared a quarterly cash dividend of $0.28 per share, which was paid on July 15, 2010 to holders of record as of June 30, 2010.
Financial results for the 2010 second quarter can also be obtained at: http://www.lincolnelectric.com/InvestorNews.
A conference call to discuss the 2010 second quarter financial results is scheduled for today, Tuesday, July 27, 2010, at 10:00 a.m., Eastern Time. An audio webcast of the call is accessible through the investor tab on the Company's website at http://www.lincolnelectric.com/corporate/.
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 37 manufacturing locations, including operations and joint ventures in 18 countries and a worldwide network of distributors and sales offices covering more than 160 countries. For more information about Lincoln Electric, 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. 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 international terrorism and hostilities 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.
#072710# |
|
Lincoln Electric Holdings, Inc. |
|||||||||||||
Financial Highlights |
|||||||||||||
(In thousands, except per share data) |
|||||||||||||
(Unaudited) |
|||||||||||||
Consolidated Statements of Income |
|||||||||||||
Three Months Ended June 30, |
Fav (Unfav) to Prior Year |
||||||||||||
2010 |
% of Sales |
2009 |
% of Sales |
$ |
% |
||||||||
Net sales |
$ 515,584 |
100.0% |
$ 413,283 |
100.0% |
$ 102,301 |
24.8% |
|||||||
Cost of goods sold |
367,001 |
71.2% |
306,892 |
74.3% |
(60,109) |
(19.6%) |
|||||||
Gross profit |
148,583 |
28.8% |
106,391 |
25.7% |
42,192 |
39.7% |
|||||||
Selling, general & administrative expenses |
101,065 |
19.6% |
79,482 |
19.2% |
(21,583) |
(27.2%) |
|||||||
Rationalization (gains) charges |
(3,629) |
(0.7%) |
6,877 |
1.7% |
10,506 |
152.8% |
|||||||
Operating income |
51,147 |
9.9% |
20,032 |
4.8% |
31,115 |
155.3% |
|||||||
Interest income |
544 |
0.1% |
952 |
0.2% |
(408) |
(42.9%) |
|||||||
Equity earnings in affiliates |
1,184 |
0.2% |
4,555 |
1.1% |
(3,371) |
(74.0%) |
|||||||
Other income |
263 |
0.1% |
918 |
0.2% |
(655) |
(71.4%) |
|||||||
Interest expense |
(1,566) |
(0.3%) |
(1,953) |
(0.5%) |
387 |
19.8% |
|||||||
Income before income taxes |
51,572 |
10.0% |
24,504 |
5.9% |
27,068 |
110.5% |
|||||||
Income taxes |
17,265 |
3.3% |
8,797 |
2.1% |
(8,468) |
(96.3%) |
|||||||
Effective tax rate |
33.5% |
35.9% |
2.4% |
||||||||||
Net income including noncontrolling interests |
$ 34,307 |
6.7% |
$ 15,707 |
3.8% |
$ 18,600 |
118.4% |
|||||||
Noncontrolling interests in subsidiaries' earnings |
1,767 |
0.3% |
639 |
0.2% |
(1,128) |
(176.5%) |
|||||||
Net income |
$ 32,540 |
6.3% |
$ 15,068 |
3.6% |
$ 17,472 |
116.0% |
|||||||
Basic earnings per share |
$ 0.77 |
$ 0.36 |
$ 0.41 |
113.9% |
|||||||||
Diluted earnings per share |
$ 0.76 |
$ 0.35 |
$ 0.41 |
117.1% |
|||||||||
Weighted average shares (basic) |
42,306 |
42,389 |
|||||||||||
Weighted average shares (diluted) |
42,708 |
42,592 |
|||||||||||
Six Months Ended June 30, |
Fav (Unfav) to Prior Year |
||||||||||||
2010 |
% of Sales |
2009 |
% of Sales |
$ |
% |
||||||||
Net sales |
$ 986,542 |
100.0% |
$ 825,034 |
100.0% |
$ 161,508 |
19.6% |
|||||||
Cost of goods sold |
714,626 |
72.4% |
628,395 |
76.2% |
(86,231) |
(13.7%) |
|||||||
Gross profit |
271,916 |
27.6% |
196,639 |
23.8% |
75,277 |
38.3% |
|||||||
Selling, general & administrative expenses |
188,840 |
19.1% |
157,143 |
19.0% |
(31,697) |
(20.2%) |
|||||||
Rationalization (gains) charges |
(2,828) |
(0.3%) |
18,576 |
2.3% |
21,404 |
115.2% |
|||||||
Operating income |
85,904 |
8.7% |
20,920 |
2.5% |
64,984 |
310.6% |
|||||||
Interest income |
1,179 |
0.1% |
2,064 |
0.3% |
(885) |
(42.9%) |
|||||||
Equity earnings in affiliates |
1,614 |
0.2% |
2,569 |
0.3% |
(955) |
(37.2%) |
|||||||
Other income |
696 |
0.1% |
1,311 |
0.2% |
(615) |
(46.9%) |
|||||||
Interest expense |
(3,080) |
(0.3%) |
(4,515) |
(0.5%) |
1,435 |
31.8% |
|||||||
Income before income taxes |
86,313 |
8.7% |
22,349 |
2.7% |
63,964 |
286.2% |
|||||||
Income taxes |
28,240 |
2.9% |
10,381 |
1.3% |
(17,859) |
(172.0%) |
|||||||
Effective tax rate |
32.7% |
46.4% |
13.7% |
||||||||||
Net income including noncontrolling interests |
$ 58,073 |
5.9% |
$ 11,968 |
1.5% |
$ 46,105 |
385.2% |
|||||||
Noncontrolling interests in subsidiaries' earnings |
1,805 |
0.2% |
494 |
0.1% |
(1,311) |
(265.4%) |
|||||||
Net income |
$ 56,268 |
5.7% |
$ 11,474 |
1.4% |
$ 44,794 |
390.4% |
|||||||
Basic earnings per share |
$ 1.33 |
$ 0.27 |
$ 1.06 |
392.6% |
|||||||||
Diluted earnings per share |
$ 1.32 |
$ 0.27 |
$ 1.05 |
388.9% |
|||||||||
Weighted average shares (basic) |
42,355 |
42,380 |
|||||||||||
Weighted average shares (diluted) |
42,732 |
42,580 |
|||||||||||
Lincoln Electric Holdings, Inc. |
|||||||||
Financial Highlights |
|||||||||
(In thousands, except per share data) |
|||||||||
(Unaudited) |
|||||||||
Non-GAAP Financial Measures |
|||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
Operating income |
$ 51,147 |
$ 20,032 |
$ 85,904 |
$ 20,920 |
|||||
Special items (pre-tax): |
|||||||||
Rationalization activities |
(3,629) |
6,877 |
(2,828) |
18,576 |
|||||
Impact of Venezuelan currency |
2,319 |
- |
2,308 |
- |
|||||
Pension settlement |
- |
(2,144) |
- |
(2,144) |
|||||
Adjusted operating income (1) |
$ 49,837 |
$ 24,765 |
$ 85,384 |
$ 37,352 |
|||||
Net income |
$ 32,540 |
$ 15,068 |
$ 56,268 |
$ 11,474 |
|||||
Special items (after-tax): |
|||||||||
Rationalization activities |
(3,773) |
6,639 |
(3,161) |
14,067 |
|||||
Impact of Venezuelan currency |
2,319 |
- |
2,745 |
- |
|||||
Pension settlement |
- |
(2,144) |
- |
(2,144) |
|||||
Sale of property in equity earnings |
- |
(5,667) |
- |
(5,667) |
|||||
Noncontrolling interests |
1,846 |
601 |
1,846 |
601 |
|||||
Adjusted net income (1) |
$ 32,932 |
$ 14,497 |
$ 57,698 |
$ 18,331 |
|||||
Diluted earnings per share |
$ 0.76 |
$ 0.35 |
$ 1.32 |
$ 0.27 |
|||||
Special items (after-tax) |
0.01 |
(0.01) |
0.03 |
0.16 |
|||||
Adjusted diluted earnings per share (1) |
$ 0.77 |
$ 0.34 |
$ 1.35 |
$ 0.43 |
|||||
Weighted average shares (diluted) |
42,708 |
42,592 |
42,732 |
42,580 |
|||||
(1) 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 merely a supplement to, and not a replacement for, GAAP financial measures. |
|||||||||
Lincoln Electric Holdings, Inc. |
|||||||||
Financial Highlights |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
Balance Sheet Highlights |
|||||||||
Selected Consolidated Balance Sheet Data |
June 30, |
December 31, |
|||||||
2010 |
2009 |
||||||||
Cash and cash equivalents |
$ 373,901 |
$ 388,136 |
|||||||
Total current assets |
1,076,276 |
1,023,546 |
|||||||
Property, plant and equipment, net |
436,443 |
460,061 |
|||||||
Total assets |
1,731,408 |
1,705,292 |
|||||||
Total current liabilities |
349,478 |
297,971 |
|||||||
Short-term debt |
24,297 |
35,867 |
|||||||
Long-term debt |
86,033 |
87,850 |
|||||||
Total equity |
1,091,539 |
1,085,675 |
|||||||
Net Operating Working Capital |
June 30, |
December 31, |
|||||||
2010 |
2009 |
||||||||
Trade accounts receivable |
$ 306,703 |
$ 273,700 |
|||||||
Inventory |
288,386 |
255,743 |
|||||||
Trade accounts payable |
141,638 |
100,052 |
|||||||
Net operating working capital |
$ 453,451 |
$ 429,391 |
|||||||
Net operating working capital to net sales (1) |
22.0% |
23.2% |
|||||||
Invested Capital |
June 30, |
December 31, |
|||||||
2010 |
2009 |
||||||||
Short-term debt |
$ 24,297 |
$ 35,867 |
|||||||
Long-term debt |
86,033 |
87,850 |
|||||||
Total debt |
110,330 |
123,717 |
|||||||
Total equity |
1,091,539 |
1,085,675 |
|||||||
Invested capital |
$ 1,201,869 |
$ 1,209,392 |
|||||||
Total debt / invested capital |
9.2% |
10.2% |
|||||||
Return on invested capital (2) |
8.0% |
4.3% |
|||||||
(1) Net operating working capital to net sales is defined as net operating working capital divided by annualized rolling three months of sales. (2) 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 data) |
|||||||
(Unaudited) |
|||||||
Consolidated Statements of Cash Flows |
|||||||
Three Months Ended June 30, |
|||||||
2010 |
2009 |
||||||
OPERATING ACTIVITIES: |
|||||||
Net income |
$ 32,540 |
$ 15,068 |
|||||
Noncontrolling interests in subsidiaries' earnings |
1,767 |
639 |
|||||
Net income including noncontrolling interests |
34,307 |
15,707 |
|||||
Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operating activities: |
|||||||
Rationalization gains |
(4,715) |
- |
|||||
Depreciation and amortization |
14,123 |
14,180 |
|||||
Equity earnings in affiliates, net |
(2) |
(3,766) |
|||||
Other non-cash items, net |
15,328 |
15,745 |
|||||
Changes in operating assets and liabilities, net of effects from acquisitions: |
|||||||
(Increase) decrease in accounts receivable |
(9,593) |
9,116 |
|||||
(Increase) decrease in inventories |
(23,055) |
51,085 |
|||||
Increase (decrease) in trade accounts payable |
10,149 |
(20,561) |
|||||
Decrease in accrued pensions |
(10,558) |
(12,447) |
|||||
Net change in other current assets and liabilities |
12,896 |
(4,410) |
|||||
Net change in other long-term assets and liabilities |
(6,733) |
(2,087) |
|||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
32,147 |
62,562 |
|||||
INVESTING ACTIVITIES: |
|||||||
Capital expenditures |
(13,719) |
(7,254) |
|||||
Additions to equity investment in affiliates |
- |
(488) |
|||||
Acquisition of businesses, net of cash acquired |
(182) |
- |
|||||
Proceeds from sale of property, plant and equipment |
7,907 |
68 |
|||||
NET CASH USED BY INVESTING ACTIVITIES |
(5,994) |
(7,674) |
|||||
FINANCING ACTIVITIES: |
|||||||
Net change in borrowings |
(2,842) |
(1,577) |
|||||
Proceeds from exercise of stock options |
812 |
202 |
|||||
Tax benefit from exercise of stock options |
292 |
72 |
|||||
Purchase of shares for treasury |
(10,055) |
- |
|||||
Cash dividends paid to shareholders |
(11,870) |
(11,450) |
|||||
NET CASH USED BY FINANCING ACTIVITIES |
(23,663) |
(12,753) |
|||||
Effect of exchange rate changes on Cash and cash equivalents |
(5,197) |
4,312 |
|||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(2,707) |
46,447 |
|||||
Cash and cash equivalents at beginning of period |
376,608 |
300,452 |
|||||
Cash and cash equivalents at end of period |
$ 373,901 |
$ 346,899 |
|||||
Cash dividends paid per share |
$ 0.28 |
$ 0.27 |
|||||
Lincoln Electric Holdings, Inc. |
|||||||
Financial Highlights |
|||||||
(In thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
Consolidated Statements of Cash Flows |
|||||||
Six Months Ended June 30, |
|||||||
2010 |
2009 |
||||||
OPERATING ACTIVITIES: |
|||||||
Net income |
$ 56,268 |
$ 11,474 |
|||||
Noncontrolling interests in subsidiaries' earnings |
1,805 |
494 |
|||||
Net income including noncontrolling interests |
58,073 |
11,968 |
|||||
Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operating activities: |
|||||||
Rationalization gains |
(4,715) |
- |
|||||
Depreciation and amortization |
28,360 |
27,668 |
|||||
Equity earnings in affiliates, net |
(170) |
(512) |
|||||
Other non-cash items, net |
11,703 |
9,149 |
|||||
Changes in operating assets and liabilities, net of effects from acquisitions: |
|||||||
(Increase) decrease in accounts receivable |
(49,872) |
40,533 |
|||||
(Increase) decrease in inventories |
(46,072) |
88,248 |
|||||
Increase (decrease) in trade accounts payable |
48,465 |
(24,943) |
|||||
Decrease in accrued pensions |
(18,140) |
(18,951) |
|||||
Net change in other current assets and liabilities |
26,324 |
208 |
|||||
Net change in other long-term assets and liabilities |
(6,213) |
857 |
|||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
47,743 |
134,225 |
|||||
INVESTING ACTIVITIES: |
|||||||
Capital expenditures |
(23,490) |
(20,819) |
|||||
Additions to equity investment in affiliates |
- |
(488) |
|||||
Acquisition of businesses, net of cash acquired |
(182) |
- |
|||||
Proceeds from sale of property, plant and equipment |
7,949 |
260 |
|||||
NET CASH USED BY INVESTING ACTIVITIES |
(15,723) |
(21,047) |
|||||
FINANCING ACTIVITIES: |
|||||||
Net change in borrowings |
(4,842) |
(30,436) |
|||||
Proceeds from exercise of stock options |
1,008 |
218 |
|||||
Tax benefit from exercise of stock options |
370 |
74 |
|||||
Purchase of shares for treasury |
(12,924) |
(343) |
|||||
Cash dividends paid to shareholders |
(23,755) |
(22,894) |
|||||
NET CASH USED BY FINANCING ACTIVITIES |
(40,143) |
(53,381) |
|||||
Effect of exchange rate changes on Cash and cash equivalents |
(6,112) |
2,770 |
|||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(14,235) |
62,567 |
|||||
Cash and cash equivalents at beginning of period |
388,136 |
284,332 |
|||||
Cash and cash equivalents at end of period |
$ 373,901 |
$ 346,899 |
|||||
Cash dividends paid per share |
$ 0.56 |
$ 0.54 |
|||||
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, 2010 |
||||||||||||||||
Net sales |
$ 253,809 |
$ 85,205 |
$ 82,363 |
$ 28,196 |
$ 66,011 |
$ - |
$ 515,584 |
|||||||||
Inter-segment sales |
28,182 |
2,987 |
2,585 |
208 |
1,628 |
(35,590) |
- |
|||||||||
Total |
$ 281,991 |
$ 88,192 |
$ 84,948 |
$ 28,404 |
$ 67,639 |
$ (35,590) |
$ 515,584 |
|||||||||
EBIT (1) |
$ 40,301 |
$ 6,790 |
$ 5,939 |
$ (1,318) |
$ 2,934 |
$ (2,052) |
$ 52,594 |
|||||||||
As a percent of total sales |
14.3% |
7.7% |
7.0% |
(4.6%) |
4.3% |
10.2% |
||||||||||
Special items (2) |
$ - |
$ 1,169 |
$ (4,382) |
$ 2,319 |
$ (416) |
$ - |
$ (1,310) |
|||||||||
EBIT, as adjusted (3) |
$ 40,301 |
$ 7,959 |
$ 1,557 |
$ 1,001 |
$ 2,518 |
$ (2,052) |
$ 51,284 |
|||||||||
As a percent of total sales |
14.3% |
9.0% |
1.8% |
3.5% |
3.7% |
9.9% |
||||||||||
Three months ended |
||||||||||||||||
June 30, 2009 |
||||||||||||||||
Net sales |
$ 208,014 |
$ 88,711 |
$ 38,249 |
$ 22,108 |
$ 56,201 |
$ - |
$ 413,283 |
|||||||||
Inter-segment sales |
20,079 |
2,311 |
292 |
- |
2,913 |
(25,595) |
- |
|||||||||
Total |
$ 228,093 |
$ 91,022 |
$ 38,541 |
$ 22,108 |
$ 59,114 |
$ (25,595) |
$ 413,283 |
|||||||||
EBIT (1) |
$ 30,620 |
$ 1,140 |
$ (4,001) |
$ 2,105 |
$ (3,250) |
$ (1,109) |
$ 25,505 |
|||||||||
As a percent of total sales |
13.4% |
1.3% |
(10.4%) |
9.5% |
(5.5%) |
6.2% |
||||||||||
Special items (4) |
$ 17 |
$ (3,481) |
$ (1,873) |
$ 307 |
$ 4,096 |
$ - |
$ (934) |
|||||||||
EBIT, as adjusted (3) |
$ 30,637 |
$ (2,341) |
$ (5,874) |
$ 2,412 |
$ 846 |
$ (1,109) |
$ 24,571 |
|||||||||
As a percent of total sales |
13.4% |
(2.6%) |
(15.2%) |
10.9% |
1.4% |
5.9% |
||||||||||
Six months ended |
||||||||||||||||
June 30, 2010 |
||||||||||||||||
Net sales |
$ 485,144 |
$ 169,881 |
$ 154,308 |
$ 50,944 |
$ 126,265 |
$ - |
$ 986,542 |
|||||||||
Inter-segment sales |
53,090 |
6,545 |
5,086 |
402 |
3,359 |
(68,482) |
- |
|||||||||
Total |
$ 538,234 |
$ 176,426 |
$ 159,394 |
$ 51,346 |
$ 129,624 |
$ (68,482) |
$ 986,542 |
|||||||||
EBIT (1) |
$ 71,297 |
$ 7,348 |
$ 6,660 |
$ 28 |
$ 5,675 |
$ (2,794) |
$ 88,214 |
|||||||||
As a percent of total sales |
13.2% |
4.2% |
4.2% |
0.1% |
4.4% |
8.9% |
||||||||||
Special items (2) |
$ - |
$ 1,709 |
$ (4,121) |
$ 2,308 |
$ (416) |
$ - |
$ (520) |
|||||||||
EBIT, as adjusted (3) |
$ 71,297 |
$ 9,057 |
$ 2,539 |
$ 2,336 |
$ 5,259 |
$ (2,794) |
$ 87,694 |
|||||||||
As a percent of total sales |
13.2% |
5.1% |
1.6% |
4.5% |
4.1% |
8.9% |
||||||||||
Six months ended |
||||||||||||||||
June 30, 2009 |
||||||||||||||||
Net sales |
$ 426,841 |
$ 176,210 |
$ 70,940 |
$ 42,767 |
$ 108,276 |
$ - |
$ 825,034 |
|||||||||
Inter-segment sales |
42,343 |
4,333 |
829 |
- |
4,777 |
(52,282) |
- |
|||||||||
Total |
$ 469,184 |
$ 180,543 |
$ 71,769 |
$ 42,767 |
$ 113,053 |
$ (52,282) |
$ 825,034 |
|||||||||
EBIT (1) |
$ 47,993 |
$ (4,338) |
$ (11,720) |
$ 2,212 |
$ (6,440) |
$ (2,907) |
$ 24,800 |
|||||||||
As a percent of total sales |
10.2% |
(2.4%) |
(16.3%) |
5.2% |
(5.7%) |
3.0% |
||||||||||
Special items (4) |
$ 10,191 |
$ (3,013) |
$ (1,476) |
$ 364 |
$ 4,699 |
$ - |
$ 10,765 |
|||||||||
EBIT, as adjusted (3) |
$ 58,184 |
$ (7,351) |
$ (13,196) |
$ 2,576 |
$ (1,741) |
$ (2,907) |
$ 35,565 |
|||||||||
As a percent of total sales |
12.4% |
(4.1%) |
(18.4%) |
6.0% |
(1.5%) |
4.3% |
||||||||||
(1) EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. (2) Special items include rationalization (gains) charges and the impact to the Company's operation in (3) The primary profit measure used by management to assess segment performance is EBIT, as adjusted. (4) Special items include rationalization charges, a gain on the sale of a property and a pension settlement gain. |
||||||||||||||||
Lincoln Electric Holdings, Inc. |
||||||||||||||||
Change in Net Sales by Segment |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended June 30 Change in Net Sales by Segment |
||||||||||||||||
Change in Net Sales due to: |
||||||||||||||||
Net Sales |
Foreign |
Net Sales |
||||||||||||||
2009 |
Volume |
Acquisitions |
Price |
Exchange |
2010 |
|||||||||||
Operating Segments |
||||||||||||||||
North America Welding |
$ 208,014 |
$ 46,064 |
$ - |
$ (3,142) |
$ 2,873 |
$ 253,809 |
||||||||||
Europe Welding |
88,711 |
4,087 |
- |
(3,793) |
(3,800) |
85,205 |
||||||||||
Asia Pacific Welding |
38,249 |
3,199 |
40,004 |
(1,744) |
2,655 |
82,363 |
||||||||||
South America Welding |
22,108 |
9,531 |
- |
4,121 |
(7,564) |
28,196 |
||||||||||
The Harris Products Group |
56,201 |
3,583 |
- |
5,282 |
945 |
66,011 |
||||||||||
Consolidated |
$ 413,283 |
$ 66,464 |
$ 40,004 |
$ 724 |
$ (4,891) |
$ 515,584 |
||||||||||
% Change |
||||||||||||||||
North America Welding |
22.1% |
- |
(1.5%) |
1.4% |
22.0% |
|||||||||||
Europe Welding |
4.6% |
- |
(4.3%) |
(4.3%) |
(4.0%) |
|||||||||||
Asia Pacific Welding |
8.4% |
104.6% |
(4.6%) |
6.9% |
115.3% |
|||||||||||
South America Welding |
43.1% |
- |
18.6% |
(34.2%) |
27.5% |
|||||||||||
The Harris Products Group |
6.4% |
- |
9.4% |
1.7% |
17.5% |
|||||||||||
Consolidated |
16.1% |
9.7% |
0.2% |
(1.2%) |
24.8% |
|||||||||||
Six Months Ended June 30 Change in Net Sales by Segment |
||||||||||||||||
Change in Net Sales due to: |
||||||||||||||||
Net Sales |
Foreign |
Net Sales |
||||||||||||||
2009 |
Volume |
Acquisitions |
Price |
Exchange |
2010 |
|||||||||||
Operating Segments |
||||||||||||||||
North America Welding |
$ 426,841 |
$ 62,771 |
$ - |
$ (12,811) |
$ 8,343 |
$ 485,144 |
||||||||||
Europe Welding |
176,210 |
2,095 |
- |
(10,725) |
2,301 |
169,881 |
||||||||||
Asia Pacific Welding |
70,940 |
6,214 |
73,897 |
(4,375) |
7,632 |
154,308 |
||||||||||
South America Welding |
42,767 |
12,556 |
- |
6,180 |
(10,559) |
50,944 |
||||||||||
The Harris Products Group |
108,276 |
7,798 |
- |
7,061 |
3,130 |
126,265 |
||||||||||
Consolidated |
$ 825,034 |
$ 91,434 |
$ 73,897 |
$ (14,670) |
$ 10,847 |
$ 986,542 |
||||||||||
% Change |
||||||||||||||||
North America Welding |
14.7% |
- |
(3.0%) |
2.0% |
13.7% |
|||||||||||
Europe Welding |
1.2% |
- |
(6.1%) |
1.3% |
(3.6%) |
|||||||||||
Asia Pacific Welding |
8.8% |
104.2% |
(6.2%) |
10.8% |
117.5% |
|||||||||||
South America Welding |
29.4% |
- |
14.5% |
(24.7%) |
19.1% |
|||||||||||
The Harris Products Group |
7.2% |
- |
6.5% |
2.9% |
16.6% |
|||||||||||
Consolidated |
11.1% |
9.0% |
(1.8%) |
1.3% |
19.6% |
|||||||||||
SOURCE Lincoln Electric Holdings, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article