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Lincoln Electric Reports Fourth Quarter And Full Year 2014 Results

Feb 17 2015

Lincoln Electric Reports Fourth Quarter And Full Year 2014 Results


Q4 Reported and Adjusted EPS $0.96
Full Year 2014 EPS of $3.18, Adjusted EPS of $3.82

CLEVELAND, Feb. 17, 2015 /PRNewswire/ --

Fourth Quarter and Full Year 2014 Key Metric Highlights

  • Q4 reported operating income margin at 15.3% of sales; 15.4% on an adjusted basis
  • FY2014 operating income margin at 13.3% of sales; a record 15.1% on an adjusted basis
  • Record FY2014 cash flows from operations - up 18.5% to $402 million
  • Solid execution with 19.1% ROIC and a record 16.5% average operating working capital ratio
  • Returned a record $380 million to shareholders in FY2014 through share repurchases and dividend payments

Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported fourth quarter 2014 net income of $75.2 million, or $0.96 per diluted share.  This compares with net income of $88.3 million, or $1.07 per diluted share, in the comparable 2013 period.  Adjusted net income in the fourth quarter 2014 was $75.4 million, or $0.96 per diluted share, compared with adjusted net income of $89.2 million, or $1.09 per diluted share, in the comparable 2013 period.  The 2013 period includes a benefit of $0.22 per diluted share from our Venezuelan operations, which operates in a hyper-inflationary environment.  This compares with no contribution to Adjusted net income from our Venezuelan operations in the fourth quarter 2014.

Sales decreased 4.3% to $684.0 million in the fourth quarter 2014 versus $714.8 million in the comparable 2013 period primarily due to unfavorable foreign currency translation and volume weakness in our South America Welding segment.  Operating income for the fourth quarter decreased 11.8% to $104.9 million, or 15.3% of sales, from $118.9 million, or 16.6% of sales, in the comparable 2013 period.  Adjusted operating income decreased 12.3% to $105.1 million or 15.4% of sales, compared with $119.9 million, or 16.8% of sales in 2013.  Lower 2014 operating income results primarily reflect a challenging year-over-year comparison in our South America Welding segment due to contraction in our Venezuelan operations.

Christopher L. Mapes, Chairman, President and Chief Executive Officer stated, "We ended the year with a strong finish highlighted by compelling results in North America and record performance across key metrics.  Steady execution of our '2020 initiatives' helped offset a challenging year-over-year comparison from our Venezuelan business and rising foreign exchange headwinds.  I am pleased to report that excluding Venezuela, the business achieved a 130 basis point expansion in operating income margin on an adjusted basis and ten percent growth in EPS in 2014.  Looking ahead to 2015, we expect to benefit from our diversified end market and geographic exposure, as well as the strength of our portfolio.  While we are cautious about near-term factors such as foreign exchange and oil prices, we expect our strategic initiatives will continue to generate value for all of our stakeholders through the cycle."

Dividend and Share Repurchases

The Company's Board of Directors increased the quarterly cash dividend 26%, from $0.23 per share to $0.29, which was paid on January 15, 2015 to shareholders of record as of December 31, 2014.  During the quarter, the Company returned $57.8 million to shareholders through the repurchase of the Company's common shares.  The Company's 2015 share repurchase target is $400 million.  

Twelve Months 2014 Summary

Net income for the twelve months ended December 31, 2014 was $254.7 million, or $3.18 per diluted share, which includes rationalization and asset impairment charges of $30.9 million and charges of $21.1 million from Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism in the first quarter.  This compares with net income of $293.8 million, or $3.54 per diluted share, in 2013.  Adjusted net income was $305.9 million, or $3.82 per diluted share, compared with adjusted net income of $313.2 million, or $3.77 per diluted share, in 2013.  Adjusted net income for the twelve months ended December 31, 2014 includes earnings of $0.17 per diluted share from the Company's Venezuelan operations as compared with $0.46 per diluted share in the comparable 2013 period. 

Sales remained relatively steady at $2.8 billion in the twelve months ended December 31, 2014 as compared with $2.9 billion in the comparable 2013 period.  This result reflects lower volumes and unfavorable foreign exchange translation being offset by pricing actions and acquisitions.  Operating income for the twelve months ended December 31, 2014 decreased to $373.7 million, or 13.3% of sales, compared with $407.0 million, or 14.3% of sales, in the comparable 2013 period.  Adjusted operating income was $424.9 million or 15.1% of sales, compared with $428.4 million, or 15.0% of sales in 2013.  Operating income and Adjusted operating income include a $3.9 million gain, $2.5 million after-tax or $0.03 per diluted share, from an insurance settlement.

Webcast Information

A conference call to discuss fourth quarter and full year 2014 financial results will be webcast live today, February 17, 2015, at 10:00 a.m., Eastern Time.  This webcast is accessible at http://ir.lincolnelectric.com.  Listeners should go to the web site prior to the call to register and download and install any necessary audio software.  A replay of the webcast will be available on the Company's web site.

Investors who are unable to access the webcast may listen to the conference call live by telephone by dialing (877) 344-3899 (domestic) or (315) 625-3087 (international) and use confirmation code 61512318.  Telephone participants are asked to dial in 10-15 minutes prior to the start of the conference call.

Financial results for the fourth quarter and full year 2014 can also be obtained at http://ir.lincolnelectric.com.

About Lincoln Electric

Lincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment and has a leading global position in the brazing and soldering alloys market.  Headquartered in Cleveland, Ohio, Lincoln has 47 manufacturing locations, including operations and joint ventures in 19 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.

Non-GAAP Information

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.

Forward-Looking Statements

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; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations, including in highly inflationary countries such as Venezuela; adverse outcome of pending or potential litigation; actual costs of the Company's rationalization plans; 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 December 31,


Fav (Unfav) to Prior Year



2014



% of Sales


2013



% of Sales


$


%

Net sales


$

683,954



100.0

%


$

714,791



100.0

%


$

(30,837)



(4.3%)


Cost of goods sold


452,869



66.2

%


471,744



66.0

%


18,875



4.0

%

Gross profit


231,085



33.8

%


243,047



34.0

%


(11,962)



(4.9%)


Selling, general & administrative expenses


126,002



18.4

%


123,883



17.3

%


(2,119)



(1.7%)


Rationalization and asset impairment charges


166





259





93



35.9

%

Operating income


104,917



15.3

%


118,905



16.6

%


(13,988)



(11.8%)


Interest income


628



0.1

%


868



0.1

%


(240)



(27.6%)


Equity earnings in affiliates


1,104



0.2

%


1,119



0.2

%


(15)



(1.3%)


Other income


791



0.1

%


1,053



0.1

%


(262)



(24.9%)


Interest expense


(6,704)



(1.0%)



(557)



(0.1%)



(6,147)




Income before income taxes


100,736



14.7

%


121,388



17.0

%


(20,652)



(17.0%)


Income taxes


25,401



3.7

%


33,323



4.7

%


7,922



23.8

%

Effective tax rate


25.2

%





27.5

%





2.3

%




Net income including non-controlling interests


75,335



11.0

%


88,065



12.3

%


(12,730)



(14.5%)


Non-controlling interests in subsidiaries'

   earnings (loss)


123





(259)





382



147.5

%

Net income


$

75,212



11.0

%


$

88,324



12.4

%


$

(13,112)



(14.8%)





















Basic earnings per share


$

0.97






$

1.09






$

(0.12)



(11.0%)


Diluted earnings per share


$

0.96






$

1.07






$

(0.11)



(10.3%)


Weighted average shares (basic)


77,403






81,132











Weighted average shares (diluted)


78,280






82,184













Twelve months ended December 31,


Fav (Unfav) to Prior Year



2014



% of Sales


2013



% of Sales


$


%

Net sales


$

2,813,324



100.0

%


$

2,852,671



100.0

%


$

(39,347)



(1.4%)


Cost of goods sold


1,864,027



66.3

%


1,910,017



67.0

%


45,990



2.4

%

Gross profit


949,297



33.7

%


942,654



33.0

%


6,643



0.7

%

Selling, general & administrative expenses


545,497



19.4

%


527,206



18.5

%


(18,291)



(3.5%)


Rationalization and asset impairment charges


30,053



1.1

%


8,463



0.3

%


(21,590)



(255.1%)


Operating income


373,747



13.3

%


406,985



14.3

%


(33,238)



(8.2%)


Interest income


3,093



0.1

%


3,320



0.1

%


(227)



(6.8%)


Equity earnings in affiliates


5,412



0.2

%


4,806



0.2

%


606



12.6

%

Other income


3,995



0.1

%


4,194



0.1

%


(199)



(4.7%)


Interest expense


(10,434)



(0.4%)



(2,864)



(0.1%)



(7,570)



(264.3%)


Income before income taxes


375,813



13.4

%


416,441



14.6

%


(40,628)



(9.8%)


Income taxes


121,933



4.3

%


124,754



4.4

%


2,821



2.3

%

Effective tax rate


32.4

%





30.0

%





(2.4%)





Net income including non-controlling interests


253,880



9.0

%


291,687



10.2

%


(37,807)



(13.0%)


Non-controlling interests in subsidiaries'

   earnings (loss)


(806)





(2,093)



(0.1%)



1,287



61.5

%

Net income


$

254,686



9.1

%


$

293,780



10.3

%


$

(39,094)



(13.3%)





















Basic earnings per share


$

3.22






$

3.58






$

(0.36)



(10.1%)


Diluted earnings per share


$

3.18






$

3.54






$

(0.36)



(10.2%)


Weighted average shares (basic)


79,185






81,978











Weighted average shares (diluted)


80,096






83,042






























 

 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)


Non-GAAP Financial Measures





Three months ended December 31,


Twelve months ended December 31,



2014



2013



2014



2013


Operating income as reported


$

104,917



$

118,905



$

373,747



$

406,985


Special items (pre-tax):













Rationalization and asset impairment charges (1)


166



259



30,053



8,463


Loss on the sale of land (2)




705





705


Venezuela foreign exchange losses (3)






21,133



12,198


Adjusted operating income (5)


$

105,083



$

119,869



$

424,933



$

428,351















Net income as reported


$

75,212



$

88,324



$

254,686



$

293,780


Special items (after-tax):













Rationalization and asset impairment charges (1)


167



223



30,914



7,573


Loss on the sale of land (2)




705





705


Venezuela foreign exchange losses (3)






21,133



12,198


Special items attributable to non-controlling
interests (4)




(47)



(805)



(1,068)


Adjusted net income (5)


$

75,379



$

89,205



$

305,928



$

313,188















Diluted earnings per share as reported


$

0.96



$

1.07



$

3.18



$

3.54


Special items




0.02



0.64



0.23


Adjusted diluted earnings per share (5)


$

0.96



$

1.09



$

3.82



$

3.77















Weighted average shares (diluted)


78,280



82,184



80,096



83,042


 

(1)

The three and twelve months ended December 31, 2014 include non-cash asset impairment charges.  The twelve months ended December 31, 2014 also includes net rationalization credits including gains on the sale of assets.  The three and twelve months ended December 31, 2013 include net charges associated with long-lived asset impairments and severance and other related costs from the consolidation of manufacturing operations partially offset by gains related to the sale of assets, including real estate, at rationalized operations.

(2)

Represents the loss realized related to the sale of land.

(3)

The twelve months ended December 31, 2014 represents the impact of the Venezuelan remeasurement loss related to the adoption of a new foreign exchange mechanism in the first quarter.  The twelve months ended December 31, 2013 represents the impact of the devaluation of the Venezuelan currency.

(4)

Represents the portion of special items attributable to non-controlling interests.

(5)

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



Selected Consolidated Balance Sheet Data


December 31, 2014


December 31, 2013

Cash and cash equivalents


$

278,379



$

299,825


Total current assets


1,098,677



1,130,775


Property, plant and equipment, net


437,209



484,005


Total assets


1,939,215



2,151,867


Total current liabilities


492,419



456,917


Short-term debt (1)


68,166



15,296


Long-term debt


2,488



3,791


Total equity


1,285,781



1,530,688









Net Operating Working Capital


December 31, 2014


December 31, 2013

Accounts receivable


$

321,862



$

367,134


Inventory


330,840



349,963


Trade accounts payable


202,482



212,799


Net operating working capital


$

450,220



$

504,298









Net operating working capital to net sales (2)


16.5

%


17.6

%








Invested Capital


December 31, 2014


December 31, 2013

Short-term debt (1)


$

68,166



$

15,296


Long-term debt


2,488



3,791


Total debt


70,654



19,087


Total equity


1,285,781



1,530,688


Invested capital


$

1,356,435



$

1,549,775









Total debt / invested capital


5.2

%


1.2

%

Return on invested capital (3)


19.1

%


18.9

%

 

(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)


Condensed Consolidated Statements of Cash Flows





Three months ended December 31,



2014



2013


OPERATING ACTIVITIES:







Net income


$

75,212



$

88,324


Non-controlling interests in subsidiaries' earnings (loss)


123



(259)


Net income including non-controlling interests


75,335



88,065


Adjustments to reconcile Net income including non-controlling interests to Net cash

   provided by operating activities:







Rationalization and asset impairment charges


127



43


Depreciation and amortization


16,590



17,002


Equity loss (earnings) in affiliates, net


53



(347)


Pension expense


2,761



7,513


Pension contributions and payments


(1,429)



(2,939)


Other non-cash items, net


14,357



(296)


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







     Decrease in accounts receivable


28,264



12,545


     Decrease in inventories


5,435



23,199


     Increase in trade accounts payable


13,669



33,497


     Net change in other current assets and liabilities


(24,954)



(80,601)


     Net change in other long-term assets and liabilities


3,441



(878)


NET CASH PROVIDED BY OPERATING ACTIVITIES


133,649



96,803









INVESTING ACTIVITIES:







Capital expenditures


(17,560)



(16,324)


Acquisition of businesses, net of cash acquired


(23,338)



(48,225)


Proceeds from sale of property, plant and equipment


411



597


Other investing activities




2,500


NET CASH USED BY INVESTING ACTIVITIES


(40,487)



(61,452)









FINANCING ACTIVITIES:







Net change in borrowings


(17,783)



511


Proceeds from exercise of stock options


3,171



4,220


Excess tax benefits from stock-based compensation


2,606



3,629


Purchase of shares for treasury


(57,775)



(54,238)


Cash dividends paid to shareholders


(17,866)



(16,290)


Transactions with non-controlling interests




(3,278)


NET CASH USED BY FINANCING ACTIVITIES


(87,647)



(65,446)









Effect of exchange rate changes on Cash and cash equivalents


(6,659)



(389)


DECREASE IN CASH AND CASH EQUIVALENTS


(1,144)



(30,484)


Cash and cash equivalents at beginning of period


279,523



330,309


Cash and cash equivalents at end of period


$

278,379



$

299,825









Cash dividends paid per share


$

0.23



$

0.20


 

 

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)


Condensed Consolidated Statements of Cash Flows





Twelve months ended December 31,



2014



2013


OPERATING ACTIVITIES:







Net income


$

254,686



$

293,780


Non-controlling interests in subsidiaries' loss


(806)



(2,093)


Net income including non-controlling interests


253,880



291,687


Adjustments to reconcile Net income including non-controlling interests to Net cash

   provided by operating activities:







Rationalization and asset impairment charges


29,574



5,092


Depreciation and amortization


69,607



68,883


Equity earnings in affiliates, net


(1,848)



(1,660)


Pension expense


12,395



29,774


Pension contributions and payments


(36,072)



(87,356)


Other non-cash items, net


44,398



29,461


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







     Decrease (increase) in accounts receivable


5,876



(5,437)


     (Increase) decrease in inventories


(5,718)



13,310


     Increase in trade accounts payable


2,135



794


     Net change in other current assets and liabilities


28,345



(4,974)


     Net change in other long-term assets and liabilities


(870)



(680)


NET CASH PROVIDED BY OPERATING ACTIVITIES


401,702



338,894









INVESTING ACTIVITIES:







Capital expenditures


(72,990)



(76,015)


Acquisition of businesses, net of cash acquired


(24,230)



(53,161)


Proceeds from sale of property, plant and equipment


17,457



1,393


Other investing activities


778



(1,717)


NET CASH USED BY INVESTING ACTIVITIES


(78,985)



(129,500)









FINANCING ACTIVITIES:







Net change in borrowings


53,331



(1,840)


Proceeds from exercise of stock options


9,116



20,297


Excess tax benefits from stock-based compensation


5,967



10,602


Purchase of shares for treasury


(307,178)



(167,879)


Cash dividends paid to shareholders


(73,261)



(49,277)


Transactions with non-controlling interests


(2,330)



(6,087)


NET CASH USED BY FINANCING ACTIVITIES


(314,355)



(194,184)









Effect of exchange rate changes on Cash and cash equivalents


(29,808)



(1,849)


(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS


(21,446)



13,361


Cash and cash equivalents at beginning of period


299,825



286,464


Cash and cash equivalents at end of period


$

278,379



$

299,825









Cash dividends paid per share


$

0.92



$

0.60


 

 

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)




North

America

Welding


Europe

Welding


Asia Pacific

Welding


South

America

Welding


The Harris

Products

Group


Corporate /

Eliminations


Consolidated

Three months ended December 31, 2014




















Net sales


$

429,907



$

97,288



$

58,113



$

32,689



$

65,957



$



$

683,954


Inter-segment sales


28,064



3,699



3,176



71



1,821



(36,831)




Total


$

457,971



$

100,987



$

61,289



$

32,760



$

67,778



$

(36,831)



$

683,954
























EBIT (1)


$

88,456



$

9,429



$

1,715



$

(217)



$

6,380



$

1,049



$

106,812


As a percent of total sales


19.3

%


9.3

%


2.8

%


(0.7%)



9.4

%





15.6

%

Special items (gain) charge (2)


$



$

(19)



$

185



$



$



$



$

166


EBIT, as adjusted (4)


$

88,456



$

9,410



$

1,900



$

(217)



$

6,380



$

1,049



$

106,978


As a percent of total sales


19.3

%


9.3

%


3.1

%


(0.7%)



9.4

%





15.6

%

Three months ended December 31, 2013




















Net sales


$

410,033



$

111,874



$

63,170



$

63,303



$

66,411



$



$

714,791


Inter-segment sales


27,385



6,046



2,327



11



2,396



(38,165)




Total


$

437,418



$

117,920



$

65,497



$

63,314



$

68,807



$

(38,165)



$

714,791
























EBIT (1)


$

83,902



$

7,752



$

(792)



$

25,187



$

6,415



$

(1,387)



$

121,077


As a percent of total sales


19.2

%


6.6

%


(1.2%)



39.8

%


9.3

%





16.9

%

Special items (gain) charge (3)


$

(57)



$

381



$

640



$



$



$



$

964


EBIT, as adjusted (4)


$

83,845



$

8,133



$

(152)



$

25,187



$

6,415



$

(1,387)



$

122,041


As a percent of total sales


19.2

%


6.9

%


(0.2%)



39.8

%


9.3

%





17.1

%

Twelve months ended December 31, 2014




















Net sales


$

1,700,924



$

425,775



$

243,800



$

148,595



$

294,230



$



$

2,813,324


Inter-segment sales


124,732



19,586



14,820



144



8,210



(167,492)




Total


$

1,825,656



$

445,361



$

258,620



$

148,739



$

302,440



$

(167,492)



$

2,813,324
























EBIT (1)


$

335,533



$

47,918



$

(27,314)



$

(5,762)



$

28,563



$

4,216



$

383,154


As a percent of total sales


18.4

%


10.8

%


(10.6%)



(3.9%)



9.4

%





13.6

%

Special items (gain) charge (2)


$

(68)



$

904



$

28,635



$

21,715



$



$



$

51,186


EBIT, as adjusted (4)


$

335,465



$

48,822



$

1,321



$

15,953



$

28,563



$

4,216



$

434,340


As a percent of total sales


18.4

%


11.0

%


0.5

%


10.7

%


9.4

%





15.4

%

Twelve months ended December 31, 2013




















Net sales


$

1,652,769



$

429,548



$

266,282



$

195,895



$

308,177



$



$

2,852,671


Inter-segment sales


127,254



19,911



14,906



233



9,605



(171,909)




Total


$

1,780,023



$

449,459



$

281,188



$

196,128



$

317,782



$

(171,909)



$

2,852,671
























EBIT (1)


$

317,455



$

34,202



$

(4,256)



$

45,108



$

27,826



$

(4,350)



$

415,985


As a percent of total sales


17.8

%


7.6

%


(1.5%)



23.0

%


8.8

%





14.6

%

Special items (gain) charge (3)


$

1,052



$

2,045



$

6,071



$

12,198



$



$



$

21,366


EBIT, as adjusted (4)


$

318,507



$

36,247



$

1,815



$

57,306



$

27,826



$

(4,350)



$

437,351


As a percent of total sales


17.9

%


8.1

%


0.6

%


29.2

%


8.8

%





15.3

%

 

(1)

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

(2)

Special items in the three and twelve months ended December 31, 2014 include non-cash asset impairment charges.  The twelve months ended December 31, 2014 also includes net rationalization credits including gains on the sale of assets.  Special items in the twelve months ended December 31, 2014 also include the impact of the Venezuelan remeasurement losses related to the adoption of a new foreign exchange mechanism in the first quarter. 

(3)

Special items in the three and twelve months ended December 31, 2013 include net rationalization and asset impairment charges and the impact of the devaluation of the Venezuelan currency.

(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 December 31st Change in Net Sales by Segment















Change in Net Sales due to:






Net Sales

2013



Volume


Acquisitions


Price


Foreign

Exchange


Net Sales

2014


Operating Segments



















North America Welding


$

410,033



$

5,331



$

15,936



$

2,902



$

(4,295)



$

429,907


Europe Welding


111,874



(2,156)





(912)



(11,518)



97,288


Asia Pacific Welding


63,170



(4,866)





374



(565)



58,113


South America Welding


63,303



(27,900)





13,896



(16,610)



32,689


The Harris Products Group


66,411



4,874





(3,927)



(1,401)



65,957


Consolidated


$

714,791



$

(24,717)



$

15,936



$

12,333



$

(34,389)



$

683,954


% Change



















North America Welding





1.3

%


3.9

%


0.7

%


(1.0%)



4.8

%

Europe Welding





(1.9%)





(0.8%)



(10.3%)



(13.0%)


Asia Pacific Welding





(7.7%)





0.6

%


(0.9%)



(8.0%)


South America Welding





(44.1%)





22.0

%


(26.2%)



(48.4%)


The Harris Products Group





7.3

%




(5.9%)



(2.1%)



(0.7%)


Consolidated





(3.5%)



2.2

%


1.7

%


(4.8%)



(4.3%)








































Twelve Months Ended December 31st Change in Net Sales by Segment















Change in Net Sales due to:






Net Sales

2013



Volume


Acquisitions


Price


Foreign

Exchange


Net Sales

2014


Operating Segments



















North America Welding


$

1,652,769



$

4,335



$

42,184



$

13,247



$

(11,611)



$

1,700,924


Europe Welding


429,548



8,107





(3,722)



(8,158)



425,775


Asia Pacific Welding


266,282



(17,516)





1,351



(6,317)



243,800


South America Welding


195,895



(59,554)





57,461



(45,207)



148,595


The Harris Products Group


308,177



6,722





(18,411)



(2,258)



294,230


Consolidated


$

2,852,671



$

(57,906)



$

42,184



$

49,926



$

(73,551)



$

2,813,324


% Change



















North America Welding





0.3

%


2.6

%


0.8

%


(0.7%)



2.9

%

Europe Welding





1.9

%




(0.9%)



(1.9%)



(0.9%)


Asia Pacific Welding





(6.6%)





0.5

%


(2.4%)



(8.4%)


South America Welding





(30.4%)





29.3

%


(23.1%)



(24.1%)


The Harris Products Group





2.2

%




(6.0%)



(0.7%)



(4.5%)


Consolidated





(2.0%)



1.5

%


1.8

%


(2.6%)



(1.4%)


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lincoln-electric-reports-fourth-quarter-and-full-year-2014-results-300036714.html

SOURCE Lincoln Electric Holdings, Inc.

Amanda Butler, Director, Investor Relations, Tel: 216.383.2534, Email: Amanda_Butler@lincolnelectric.com