Lincoln Electric Reports 3Q'12 Sales of $697.6 Million; 3Q Operating income increase of 18.5%; 3Q EPS of $0.77, $0.80 as adjusted, an increase of 16.7%, 21.2% as adjusted

News provided by

Lincoln Electric Holdings, Inc.

Oct 31, 2012, 07:57 ET

CLEVELAND, Oct. 31, 2012 /PRNewswire/ -- 

Third Quarter and Nine Month Highlights

  • Sales were $697.6 million in the Third Quarter 2012; Sales were $2.2 billion for the nine months ended September 30, 2012, an increase of 8.4% from 2011
  • Operating income increased 18.5% to $88.7 million, or 12.7% of sales, from $74.8 million, or 10.7% of sales, in the Third Quarter 2011; Adjusted operating income increased 22.6% to $91.8 million or 13.2% of sales
  • Operating income increased 29.0% to $276.4 million, or 12.7% of sales, from $214.3 million, or 10.7% of sales, in the nine months ended September 30, 2011; Adjusted operating income increased 31.4% to $282.1 million, or 13.0% of sales
  • Net income increased 16.6% to $64.8 million, or $0.77 per diluted share, from $55.5 million, or $0.66 per diluted share, in the Third Quarter 2011; Adjusted net income increased 21.5% to $67.5 million, or $0.80 per diluted share, from $55.5 million, or $0.66 per diluted share, in the Third Quarter 2011
  • Net cash provided by operating activities was $82.5 million in the Third Quarter 2012; Net cash provided by operating activities in the nine months ended September 30, 2012 increased $112.9 million, or 86.6%, to $243.3 million

Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported third quarter 2012 net income of $64.8 million, or $0.77 per diluted share.  Adjusted net income was $67.5 million, or $0.80 per diluted share, compared to adjusted net income of $55.5 million, or $0.66 per diluted share, in the comparable 2011 period. 

Sales were $697.6 million in the third quarter 2012 versus $701.6 million in the comparable 2011 period, a decrease of 0.6%.  Operating income for the third quarter increased $13.9 million to $88.7 million, or 12.7% of sales, from $74.8 million, or 10.7% of sales, in the comparable 2011 period.  The effective tax rate for the third quarter 2012 was 28.8% compared with 27.0% in the same period of 2011. 

Sales for the nine months ended September 30, 2012 were $2.2 billion versus $2.0 billion in the comparable 2011 period, an increase of 8.4%.  Operating income for the nine months ended September 30, 2012 increased $62.1 million to $276.4 million, or 12.7% of sales, from $214.3 million, or 10.7% of sales, in the comparable 2011 period. 

Net income for the nine months ended September 30, 2012 was $195.3 million, or $2.32 per diluted share, compared with net income of $159.5 million, or $1.88 per diluted share, in the comparable 2011 period.  Adjusted net income was $199.9 million, or $2.37 per diluted share, compared to adjusted net income of $154.8 million, or $1.83 per diluted share, in the comparable 2011 period.  The effective tax rate for the nine months ended September 30, 2012 was 30.8% compared with 26.9% in 2011.  The nine months ended September 30, 2011 included a favorable $4.8 million tax adjustment for tax audit settlements.

"The Company delivered excellent operating results this quarter," said John M. Stropki, Chairman and Chief Executive Officer.  "We expanded margins significantly, drove our return on invested capital to almost 19% and generated strong operating cash flows which we will continue to deploy to increase shareholder value.

"Our strong operating performance was delivered in spite of the challenges associated with a weaker macroeconomic environment in international markets and the slowing growth rates in our North America Welding segment.  Despite these headwinds, we saw stabilization in orders and revenues.  Although we remain cautious for the near term, we are mildly optimistic that the global economy could show moderate improvement in 2013.

"Our overall performance reflects the successful execution of our global growth and operational improvement strategies.  We will continue to explore attractive acquisitions that will shape our product portfolio and grow our global reach.  We plan to continue our strong investment in new product development and global commercial infrastructure.  We remain well positioned to execute our long-term strategic objectives, achieving significant earnings growth and superior returns on invested capital."

Net cash provided by operating activities decreased $2.3 million to $82.5 million in the third quarter from $84.8 million for the comparable period in 2011.  Third quarter cash flows from operations was reduced by a $56.0 million deposit related to a Canadian income tax dispute.  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 481,300 of the Company's common shares, for treasury.  The Company also invested $3.5 million in acquisitions and voluntarily contributed $17.3 million to its U.S. pension plans during the quarter. 

Net cash provided by operating activities increased $112.9 million to $243.3 million in the nine months ended September 30, 2012 from $130.4 million for the comparable period in 2011.  The 2012 cash flows from operations was reduced by a $56.0 million deposit related to a Canadian income tax dispute.  During the period, the Company repaid its $80.0 million senior unsecured note.  The Company also returned $102.7 million to shareholders through the payment of $42.5 million in dividends and the repurchase of $60.2 million, or 1,341,984 of the Company's common shares, for treasury during the period.  The Company also invested $52.9 million in acquisitions and voluntarily contributed $53.3 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 October 15, 2012 to holders of record on September 28, 2012.

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

A conference call to discuss the third quarter 2012 financial results is scheduled for today, Wednesday, October 31, 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.

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.

Lincoln Electric Holdings, Inc.

Financial Highlights 

(In thousands, except per share amounts)

(Unaudited)















Consolidated Statements of Income













Three Months Ended September 30,

Fav (Unfav) to Prior Year


2012

 % of Sales 

2011

 % of Sales 

$

%

Net sales

$     697,552

100.0%

$     701,624

100.0%

$        (4,072)

(0.6%)

Cost of goods sold

484,190

69.4%

516,172

73.6%

31,982

6.2%

Gross profit

213,362

30.6%

185,452

26.4%

27,910

15.0%

Selling, general & administrative expenses

121,602

17.4%

110,629

15.8%

(10,973)

(9.9%)

Rationalization and asset impairment charges (gains)

3,059

0.4%

-

-

(3,059)

(100.0%)

Operating income

88,701

12.7%

74,823

10.7%

13,878

18.5%

Interest income

916

0.1%

1,167

0.2%

(251)

(21.5%)

Equity earnings in affiliates

1,566

0.2%

1,488

0.2%

78

5.2%

Other income 

746

0.1%

147

-

599

407.5%

Interest expense

(1,040)

(0.1%)

(1,752)

(0.2%)

712

40.6%

Income before income taxes

90,889

13.0%

75,873

10.8%

15,016

19.8%

Income taxes

26,153

3.7%

20,515

2.9%

(5,638)

(27.5%)

Effective tax rate

28.8%


27.0%


(1.7%)



Net income including noncontrolling interests

64,736

9.3%

55,358

7.9%

9,378

16.9%

Noncontrolling interests in subsidiaries' loss

(29)

-

(172)

-

143

83.1%

Net income

$       64,765

9.3%

$       55,530

7.9%

$         9,235

16.6%















Basic earnings per share 

$           0.78


$           0.66


$           0.12

18.2%

Diluted earnings per share 

$           0.77


$           0.66


$           0.11

16.7%















Weighted average shares (basic)

82,918


83,613







Weighted average shares (diluted)

83,916


84,549






















Nine Months Ended September 30,

Fav (Unfav) to Prior Year


2012

 % of Sales 

2011

 % of Sales 

$

%

Net sales

$  2,168,719

100.0%

$  2,000,096

100.0%

$     168,623

8.4%

Cost of goods sold

1,515,095

69.9%

1,457,702

72.9%

(57,393)

(3.9%)

Gross profit

653,624

30.1%

542,394

27.1%

111,230

20.5%

Selling, general & administrative expenses

372,931

17.2%

327,794

16.4%

(45,137)

(13.8%)

Rationalization and asset impairment charges (gains)

4,317

0.2%

282

-

(4,035)

(1430.9%)

Operating income

276,376

12.7%

214,318

10.7%

62,058

29.0%

Interest income

2,648

0.1%

2,436

0.1%

212

8.7%

Equity earnings in affiliates

4,264

0.2%

4,033

0.2%

231

5.7%

Other income 

2,015

0.1%

2,154

0.1%

(139)

(6.5%)

Interest expense

(3,338)

(0.2%)

(5,037)

(0.3%)

1,699

33.7%

Income before income taxes

281,965

13.0%

217,904

10.9%

64,061

29.4%

Income taxes

86,715

4.0%

58,582

2.9%

(28,133)

(48.0%)

Effective tax rate

30.8%


26.9%


(3.9%)



Net income including noncontrolling interests

195,250

9.0%

159,322

8.0%

35,928

22.6%

Noncontrolling interests in subsidiaries' loss

(77)

-

(131)

-

54

41.2%

Net income

$     195,327

9.0%

$     159,453

8.0%

$       35,874

22.5%















Basic earnings per share 

$           2.35


$           1.90


$           0.45

23.7%

Diluted earnings per share 

$           2.32


$           1.88


$           0.44

23.4%















Weighted average shares (basic)

83,233


83,781







Weighted average shares (diluted)

84,326


84,826
























Lincoln Electric Holdings, Inc.

Financial Highlights 

(In thousands, except per share amounts)

(Unaudited)











Non-GAAP Financial Measures









Three Months Ended September 30,

Nine Months Ended September 30,


2012

2011

2012

2011

Operating income as reported

$             88,701

$             74,823

$           276,376

$           214,318

   Special items (pre-tax):








      Rationalization and asset impairment charges (gains) (1)

3,059

-

4,317

282

      Venezuelan statutory severance obligation  (2)

-

-

1,381

-

Adjusted operating income (4)

$             91,760

$             74,823

$           282,074

$           214,600











Net income as reported

$             64,765

$             55,530

$           195,327

$           159,453

   Special items (after-tax):








      Rationalization and asset impairment charges (gains) (1)

2,704

-

3,619

237

      Venezuelan statutory severance obligation  (2)

-

-

906

-

      Adjustment for tax audit settlements (3)

-

-

-

(4,844)

Adjusted net income (4)

$             67,469

$             55,530

$           199,852

$           154,846











Diluted earnings per share as reported

$                 0.77

$                 0.66

$                 2.32

$                 1.88

Special items

0.03

-

0.05

(0.05)

Adjusted diluted earnings per share (4)

$                 0.80

$                 0.66

$                 2.37

$                 1.83











Weighted average shares (diluted)

83,916

84,549

84,326

84,826











(1)

The three and nine month periods ended September 30, 2012 include net charges associated with severance, impairment 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.  The nine month period ended Septembr 30, 2011 includes charges associated with severance and other costs from the consolidation of manufacturing operations initiated in 2009 partially 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










September 30,

December 31,

Selected Consolidated Balance Sheet Data

2012

2011

Cash and cash equivalents

$       340,675

$       361,101

Total current assets

1,239,631

1,219,270

Property, plant and equipment, net

479,024

470,451

Total assets


2,091,522

1,976,776











Total current liabilities

492,702

471,042

Short-term debt (1)

19,494

101,418

Long-term debt

1,680

1,960

Total equity


1,336,191

1,193,242
















September 30,

December 31,

Net Operating Working Capital

2012

2011

Accounts receivable

$       391,360

$       386,197

Inventory


390,948

373,238

Trade accounts payable

186,545

176,312

Net operating working capital

$       595,763

$       583,123











Net operating working capital to net sales(2)

21.4%

21.0%
















September 30,

December 31,

Invested Capital

2012

2011

Short-term debt (1)

$         19,494

$       101,418

Long-term debt

1,680

1,960

Total debt


21,174

103,378

Total equity


1,336,191

1,193,242

Invested capital

$    1,357,365

$    1,296,620











Total debt / invested capital

1.6%

8.0%

Return on invested capital (3)

18.7%

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 September 30,




2012

2011

OPERATING ACTIVITIES:






Net income

$              64,765

$              55,530

Noncontrolling interests in subsidiaries' loss

(29)

(172)

Net income including noncontrolling interests

64,736

55,358









Adjustments to reconcile Net income including noncontrolling interests to Net






  cash provided by operating activities:






Rationalization and asset impairment charges

357

-

Depreciation and amortization

16,435

15,740

Equity earnings in affiliates, net 

(738)

(758)

Other non-cash items, net

(6,515)

3,624

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






Decrease in accounts receivable

35,299

3,436

Decrease in inventories

13,870

13,000

Decrease in trade accounts payable

(17,565)

(31,049)

Decrease in accrued pensions

(17,615)

(13,946)

Net change in other current assets and liabilities

50,929

39,699

Net change in other long-term assets and liabilities

(56,738)

(302)

NET CASH PROVIDED BY OPERATING ACTIVITIES

82,455

84,802









INVESTING ACTIVITIES:






Capital expenditures

(13,060)

(21,380)

Acquisition of businesses, net of cash acquired

(3,516)

(44,459)

Proceeds from sale of property, plant and equipment

200

154

NET CASH USED BY INVESTING ACTIVITIES

(16,376)

(65,685)









FINANCING ACTIVITIES:






Net change in borrowings

(2,632)

(1,392)

Proceeds from exercise of stock options

483

1,012

Tax benefit from exercise of stock options

140

300

Purchase of shares for treasury

(20,017)

(14,321)

Cash dividends paid to shareholders

(14,147)

(12,996)

NET CASH USED BY FINANCING ACTIVITIES

(36,173)

(27,397)









Effect of exchange rate changes on Cash and cash equivalents

2,806

(8,175)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

32,712

(16,455)

Cash and cash equivalents at beginning of period

307,963

337,915

Cash and cash equivalents at end of period

$            340,675

$            321,460









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









Nine Months Ended September 30,




2012

2011

OPERATING ACTIVITIES:






Net income

$            195,327

$            159,453

Noncontrolling interests in subsidiaries' loss

(77)

(131)

Net income including noncontrolling interests

195,250

159,322









Adjustments to reconcile Net income including noncontrolling interests to Net






  cash provided by operating activities:






Rationalization and asset impairment charges

357

23

Depreciation and amortization

48,220

47,089

Equity earnings in affiliates, net 

(1,449)

(1,316)

Other non-cash items, net

29,159

28,056

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






Decrease (increase) in accounts receivable

13,750

(72,287)

Increase in inventories

(6,832)

(98,727)

(Decrease) increase in trade accounts payable

(1,182)

34,988

Decrease in accrued pensions

(54,472)

(30,490)

Net change in other current assets and liabilities

73,413

67,084

Net change in other long-term assets and liabilities

(52,873)

(3,364)

NET CASH PROVIDED BY OPERATING ACTIVITIES

243,341

130,378









INVESTING ACTIVITIES:






Capital expenditures

(39,307)

(50,750)

Acquisition of businesses, net of cash acquired

(52,851)

(62,340)

Proceeds from sale of property, plant and equipment

538

1,003

Other investing activities

(1,541)

-

NET CASH USED BY INVESTING ACTIVITIES

(93,161)

(112,087)









FINANCING ACTIVITIES:






Net change in borrowings

(88,001)

(2,878)

Proceeds from exercise of stock options

12,695

7,211

Tax benefit from exercise of stock options

5,594

2,327

Purchase of shares for treasury

(60,155)

(27,630)

Cash dividends paid to shareholders

(42,510)

(39,001)

NET CASH USED BY FINANCING ACTIVITIES

(172,377)

(59,971)









Effect of exchange rate changes on Cash and cash equivalents

1,771

(3,053)

DECREASE IN CASH AND CASH EQUIVALENTS

(20,426)

(44,733)

Cash and cash equivalents at beginning of period

361,101

366,193

Cash and cash equivalents at end of period

$            340,675

$            321,460









Cash dividends paid per share

$                  0.51

$                0.465



























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















September 30, 2012















Net sales

$           390,327

$        104,480

$          76,263

$          44,545

$          81,937

$                    -

$           697,552

Inter-segment sales 

28,186

3,261

2,748

27

1,869

(36,091)

-

     Total

$           418,513

$        107,741

$          79,011

$          44,572

$          83,806

$         (36,091)

$           697,552



















EBIT(1)

$             70,320

$            6,641

$            1,346

$            7,587

$            7,739

$           (2,620)

$             91,013

     As a percent of total sales

16.8%

6.2%

1.7%

17.0%

9.2%


13.0%



















Special items charge (gain)(2)

477

1,874

708

-

-

-

3,059



















EBIT, as adjusted(4)

$             70,797

$            8,515

$            2,054

$            7,587

$            7,739

$           (2,620)

$             94,072

     As a percent of total sales

16.9%

7.9%

2.6%

17.0%

9.2%


13.5%



















Three months ended















September 30, 2011















Net sales

$           345,182

$        128,294

$          97,790

$          44,169

$          86,189

$                    -

$           701,624

Inter-segment sales 

33,070

3,238

4,111

254

2,485

(43,158)

-

     Total

$           378,252

$        131,532

$        101,901

$          44,423

$          88,674

$         (43,158)

$           701,624



















EBIT(1)

$             53,436

$          10,282

$            1,899

$            4,025

$            5,010

$            1,806

$             76,458

     As a percent of total sales

14.1%

7.8%

1.9%

9.1%

5.6%


10.9%



















Special items charge (gain)(3)

-

-

-

-

-

-

-



















EBIT, as adjusted(4)

$             53,436

$          10,282

$            1,899

$            4,025

$            5,010

$            1,806

$             76,458

     As a percent of total sales

14.1%

7.8%

1.9%

9.1%

5.6%


10.9%



















Nine months ended















September 30, 2012















Net sales

$        1,187,879

$        344,720

$        254,259

$        121,552

$        260,309

$                    -

$        2,168,719

Inter-segment sales 

101,386

12,178

11,641

38

6,605

(131,848)

-

     Total

$        1,289,265

$        356,898

$        265,900

$        121,590

$        266,914

$       (131,848)

$        2,168,719



















EBIT(1)

$           216,318

$          29,851

$            7,344

$          12,091

$          23,933

$           (6,882)

$           282,655

     As a percent of total sales

16.8%

8.4%

2.8%

9.9%

9.0%


13.0%



















Special items charge (gain)(2)

554

2,466

1,297

1,381

-

-

5,698



















EBIT, as adjusted(4)

$           216,872

$          32,317

$            8,641

$          13,472

$          23,933

$           (6,882)

$           288,353

     As a percent of total sales

16.8%

9.1%

3.2%

11.1%

9.0%


13.3%



















Nine months ended















September 30, 2011















Net sales

$           947,594

$        381,750

$        288,072

$        116,011

$        266,669

$                  -

$        2,000,096

Inter-segment sales 

105,419

13,375

10,721

374

6,735

(136,624)

-

     Total

$        1,053,013

$        395,125

$        298,793

$        116,385

$        273,404

$       (136,624)

$        2,000,096



















EBIT(1)

$           158,192

$          26,875

$            3,391

$            9,600

$          20,750

$            1,697

$           220,505

     As a percent of total sales

15.0%

6.8%

1.1%

8.2%

7.6%


11.0%



















Special items charge (gain)(3)

-

392

(110)

-

-

-

282



















EBIT, as adjusted(4)

$           158,192

$          27,267

$            3,281

$            9,600

$          20,750

$            1,697

$           220,787

     As a percent of total sales

15.0%

6.9%

1.1%

8.2%

7.6%


11.0%



















(1)

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

(2)

Special items in the three and nine month periods ended September 30, 2012 include rationalization and asset impairment charges (gains).  Special items in the nine months ended September 30, 2012 also include 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 September 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

$    345,182

$        9,479

$      26,804

$        9,267

$         (405)

$    390,327

Europe Welding

128,294

(11,366)

-

(630)

(11,818)

104,480

Asia Pacific Welding

97,790

(18,989)

-

(1,035)

(1,503)

76,263

South America Welding

44,169

(1,237)

-

5,114

(3,501)

44,545

The Harris Products Group

86,189

6,440

-

(7,220)

(3,472)

81,937

Consolidated

$    701,624

$    (15,673)

$      26,804

$        5,496

$    (20,699)

$    697,552

% Change













North America Welding

2.7%

7.8%

2.7%

(0.1%)

13.1%

Europe Welding


(8.9%)

-

(0.5%)

(9.2%)

(18.6%)

Asia Pacific Welding

(19.4%)

-

(1.1%)

(1.5%)

(22.0%)

South America Welding

(2.8%)

-

11.6%

(7.9%)

0.9%

The Harris Products Group

7.5%

-

(8.4%)

(4.0%)

(4.9%)

Consolidated


(2.2%)

3.8%

0.8%

(3.0%)

(0.6%)

















Nine Months Ended September 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

$    947,594

$    115,620

$      98,361

$      31,052

$      (4,748)

$ 1,187,879

Europe Welding

381,750

(20,247)

8,322

7,126

(32,231)

344,720

Asia Pacific Welding

288,072

(36,151)

-

2,075

263

254,259

South America Welding

116,011

416

-

12,690

(7,565)

121,552

The Harris Products Group

266,669

15,741

-

(14,131)

(7,970)

260,309

Consolidated

$ 2,000,096

$      75,379

$    106,683

$      38,812

$    (52,251)

$ 2,168,719

% Change













North America Welding

12.2%

10.4%

3.3%

(0.5%)

25.4%

Europe Welding


(5.3%)

2.2%

1.9%

(8.4%)

(9.7%)

Asia Pacific Welding

(12.5%)

-

0.7%

0.1%

(11.7%)

South America Welding

0.4%

-

10.9%

(6.5%)

4.8%

The Harris Products Group

5.9%

-

(5.3%)

(3.0%)

(2.4%)

Consolidated


3.8%

5.3%

1.9%

(2.6%)

8.4%
















SOURCE Lincoln Electric Holdings, Inc.

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