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Lincoln Electric Reports Second Quarter 2014 Results

Jul 27 2014

Lincoln Electric Reports Second Quarter 2014 Results


Q2 EPS $0.96, Adjusted EPS increases 11% to $1.01

CLEVELAND, July 27, 2014 /PRNewswire/ -- 

Second Quarter 2014 Highlights

  • Reported sales were steady, up 2.1% excluding unfavorable foreign exchange translation
  • Operating income increased 7.7% to $112 million, or 15.4% of sales
  • Adjusted operating income increased 8.3% to $117 million and up 120 bps to 16.0% of sales
  • Returned $87 million to shareholders through share repurchases and dividends

Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported second quarter 2014 net income of $77.3 million, or $0.96 per diluted share.  Net income was $72.6 million, or $0.87 per diluted share, in the comparable 2013 period.  Adjusted net income was $81.5 million, or $1.01 per diluted share, compared to adjusted net income of $75.7 million, or $0.91 per diluted share, in the comparable 2013 period.  Adjusted net income in the second quarter of 2014 includes earnings of $0.04 per diluted share from the Company's Venezuelan operations.

Sales were relatively steady at $728.5 million in the second quarter 2014 versus $727.4 million in the comparable 2013 period.  Operating income for the second quarter increased 7.7% to $112.3 million, or 15.4% of sales, from $104.3 million, or 14.3% of sales, in the comparable 2013 period.  Adjusted operating income increased 8.3% to $116.6 million or 16.0% of sales, compared with $107.7 million, or 14.8% 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. 

Christopher L. Mapes, Chairman, President and Chief Executive Officer stated, "We are pleased to report improving trends in our business from growth in our innovative solutions and benefits from acquisitions.  We achieved a 16.0% adjusted operating income margin in the quarter, reinforcing the solid execution of our '2020 Vision and Strategy' by improving mix, operating leverage and driving continuous improvement throughout our operations.  Cash returned to shareholders accelerated in the quarter and we now expect to achieve $250 million in share repurchases this year."

Net income for the six months ended June 30, 2014 was $133.8 million, or $1.65 per diluted share, compared with net income of $139.4 million, or $1.67 per diluted share, in 2013.  Adjusted net income was $155.6 million, or $1.92 per diluted share, compared to adjusted net income of $152.9 million, or $1.83 per diluted share, in 2013.  Adjusted net income for the six months ended June 30, 2014 includes earnings of $0.18 per diluted share from the Company's Venezuelan operations. 

Sales decreased 2.2% to $1.41 billion in the six months ended June 30, 2014 versus $1.45 billion in the comparable 2013 period.  This decrease reflects lower volumes and unfavorable foreign exchange translation, partially offset by acquisitions.  Operating income for the six months ended June 30, 2014 remained relatively flat at $192.7 million, or 13.6% of sales, compared to $192.9 million, or 13.3% of sales, in the comparable 2013 period.  Results in 2014 include charges of $21.2 million from Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism in the first quarter.  Adjusted operating income increased 3.7% to $214.7 million or 15.2% of sales, compared with $207.0 million, or 14.3% 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.

The Company's Board of Directors declared a quarterly cash dividend of $0.23 per share, which was paid on July 15, 2014 to holders of record on June 30, 2014.  During the quarter, the Company returned $68.3 million to shareholders through the repurchase of 1,009,353 of the Company's common shares. 

Webcast Information

A conference call to discuss second quarter 2014 financial results will be webcast live on Monday, July 28, 2014, 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 68746760.  Telephone participants are asked to dial in 10-15 minutes prior to the start of the conference call.

Financial results for the second quarter 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 48 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; interest rates; 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 June 30,


Fav (Unfav) to Prior Year


2014


% of Sales


2013


% of Sales


$


%

Net sales

$

728,531



100.0

%


$

727,432



100.0

%


$

1,099



0.2

%

Cost of goods sold

478,264



65.6

%


487,094



67.0

%


8,830



1.8

%

Gross profit

250,267



34.4

%


240,338



33.0

%


9,929



4.1

%

Selling, general & administrative expenses

137,156



18.8

%


135,215



18.6

%


(1,941)



(1.4)

%

Rationalization and asset impairment charges

836



0.1

%


851



0.1

%


15



1.8

%

Operating income

112,275



15.4

%


104,272



14.3

%


8,003



7.7

%

Interest income

924



0.1

%


890



0.1

%


34



3.8

%

Equity earnings in affiliates

1,575



0.2

%


1,258



0.2

%


317



25.2

%

Other income

1,078



0.1

%


913



0.1

%


165



18.1

%

Interest expense

(986)



(0.1)

%


(799)



(0.1)

%


(187)



(23.4)

%

Income before income taxes

114,866



15.8

%


106,534



14.6

%


8,332



7.8

%

Income taxes

37,577



5.2

%


34,007



4.7

%


(3,570)



(10.5)

%

Effective tax rate

32.7

%





31.9

%





(0.8)


%



Net income including non-controlling interests

77,289



10.6

%


72,527



10.0

%


4,762



6.6

%

Non-controlling interests in subsidiaries' loss

(43)





(79)





36



45.6

%

Net income

$

77,332



10.6

%


$

72,606



10.0

%


$

4,726



6.5

%



















Basic earnings per share

$

0.97






$

0.88






$

0.09



10.2

%

Diluted earnings per share

$

0.96






$

0.87






$

0.09



10.3

%

Weighted average shares (basic)

79,873






82,419











Weighted average shares (diluted)

80,773






83,411






























Six months ended June 30,


Fav (Unfav) to Prior Year


2014


% of Sales


2013


% of Sales


$


%

Net sales

$

1,413,593



100.0

%


$

1,446,005



100.0

%


$

(32,412)



(2.2)

%

Cost of goods sold

936,990



66.3

%


979,095



67.7

%


42,105



4.3

%

Gross profit

476,603



33.7

%


466,910



32.3

%


9,693



2.1

%

Selling, general & administrative expenses

283,071



20.0

%


272,106



18.8

%


(10,965)



(4.0)

%

Rationalization and asset impairment charges

819



0.1

%


1,902



0.1

%


1,083



56.9

%

Operating income

192,713



13.6

%


192,902



13.3

%


(189)



(0.1)

%

Interest income

1,838



0.1

%


1,916



0.1

%


(78)



(4.1)

%

Equity earnings in affiliates

3,136



0.2

%


2,517



0.2

%


619



24.6

%

Other income

2,161



0.2

%


1,627



0.1

%


534



32.8

%

Interest expense

(2,556)



(0.2)

%


(1,749)



(0.1)

%


(807)



(46.1)

%

Income before income taxes

197,292



14.0

%


197,213



13.6

%


79




Income taxes

63,579



4.5

%


57,843



4.0

%


(5,736)



(9.9)

%

Effective tax rate

32.2

%





29.3

%





(2.9)


%



Net income including non-controlling interests

133,713



9.5

%


139,370



9.6

%


(5,657)



(4.1)

%

Non-controlling interests in subsidiaries' loss

(72)





(42)





(30)



(71.4)

%

Net income

$

133,785



9.5

%


$

139,412



9.6

%


$

(5,627)



(4.0)

%



















Basic earnings per share

$

1.67






$

1.69






$

(0.02)



(1.2)

%

Diluted earnings per share

$

1.65






$

1.67






$

(0.02)



(1.2)

%

Weighted average shares (basic)

80,260






82,569











Weighted average shares (diluted)

81,194






83,606











 

 

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,


2014


2013


2014


2013

Operating income as reported

$

112,275


$

104,272


$

192,713


$

192,902

Special items (pre-tax):








Rationalization and asset impairment charges (1)

836


851


819


1,902

Venezuela foreign exchange losses (2)

3,468


2,538


21,133


12,198

Adjusted operating income (3)

$

116,579


$

107,661


$

214,665


$

207,002









Net income as reported

$

77,332


$

72,606


$

133,785


$

139,412

Special items (after-tax):








Rationalization and asset impairment charges (1)

698


579


691


1,252

Venezuela foreign exchange losses (2)

3,468


2,538


21,133


12,198

Adjusted net income (3)

$

81,498


$

75,723


$

155,609


$

152,862









Diluted earnings per share as reported

$

0.96


$

0.87


$

1.65


$

1.67

Special items

0.05


0.04


0.27


0.16

Adjusted diluted earnings per share (3)

$

1.01


$

0.91


$

1.92


$

1.83









Weighted average shares (diluted)

80,773


83,411


81,194


83,606



(1)

The three and six months ended June 30, 2014 and 2013 include net charges associated with severance and other related costs from the consolidation of manufacturing operations partially offset by gains related to the sale of assets at rationalized operations.

(2)

The three and six months ended June 30, 2014 represents the impact of the Venezuelan remeasurement loss related to the adoption of a new foreign exchange mechanism in the first quarter.  The three and six months ended June 30, 2013 represents the impact of the devaluation of the Venezuelan currency.

(3)

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

June 30, 2014


December 31, 2013

Cash and cash equivalents

$

204,285



$

299,825


Total current assets

1,105,739



1,130,775


Property, plant and equipment, net

481,861



484,005


Total assets

2,144,839



2,151,867


Total current liabilities

464,489



456,917


Short-term debt (1)

6,908



15,296


Long-term debt

1,159



3,791


Total equity

1,521,473



1,530,688








Net Operating Working Capital

June 30, 2014


December 31, 2013

Accounts receivable

$

407,223



$

367,134


Inventory

368,027



349,963


Trade accounts payable

196,929



212,799


Net operating working capital

$

578,321



$

504,298








Net operating working capital to net sales (2)

19.8

%


17.6

%







Invested Capital

June 30, 2014


December 31, 2013

Short-term debt (1)

$

6,908



$

15,296


Long-term debt

1,159



3,791


Total debt

8,067



19,087


Total equity

1,521,473



1,530,688


Invested capital

$

1,529,540



$

1,549,775








Total debt / invested capital

0.5

%


1.2

%

Return on invested capital (3)

18.9

%


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 June 30,


2014


2013

OPERATING ACTIVITIES:




Net income

$

77,332


$

72,606

Non-controlling interests in subsidiaries' loss

(43)


(79)

Net income including non-controlling interests

77,289


72,527

Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities:




Rationalization and asset impairment charges

894


240

Depreciation and amortization

17,969


17,158

Equity earnings in affiliates, net

(701)


(446)

Pension expense

2,676


7,320

Pension contributions and payments

(2,083)


(26,030)

Other non-cash items, net

(3,325)


9,991

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




Decrease in accounts receivable

544


23,218

(Increase) decrease in inventories

(2,298)


4,026

Decrease in trade accounts payable

(3,341)


(20,108)

Net change in other current assets and liabilities

21,833


21,439

Net change in other long-term assets and liabilities

(4,483)


(2,136)

NET CASH PROVIDED BY OPERATING ACTIVITIES

104,974


107,199





INVESTING ACTIVITIES:




Capital expenditures

(25,441)


(15,910)

Acquisition of businesses, net of cash acquired


(4,127)

Proceeds from sale of property, plant and equipment

4,443


487

Other investing activities

205


(4,217)

NET CASH USED BY INVESTING ACTIVITIES

(20,793)


(23,767)





FINANCING ACTIVITIES:




Net change in borrowings

(2,087)


(1,263)

Proceeds from exercise of stock options

1,054


3,546

Excess tax benefits from stock-based compensation

826


1,476

Purchase of shares for treasury

(68,312)


(56,897)

Cash dividends paid to shareholders

(18,496)


(16,580)

Transactions with non-controlling interests


(2,809)

NET CASH USED BY FINANCING ACTIVITIES

(87,015)


(72,527)





Effect of exchange rate changes on Cash and cash equivalents

1,732


(2,971)

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(1,102)


7,934

Cash and cash equivalents at beginning of period

205,387


248,455

Cash and cash equivalents at end of period

$

204,285


$

256,389





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 

Six months ended June 30,


2014


2013

OPERATING ACTIVITIES:




Net income

$

133,785


$

139,412

Non-controlling interests in subsidiaries' loss

(72)


(42)

Net income including non-controlling interests

133,713


139,370

Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities:




Rationalization and asset impairment charges

859


354

Depreciation and amortization

35,900


34,555

Equity earnings in affiliates, net

(1,497)


(882)

Pension expense

5,476


14,935

Pension contributions and payments

(24,164)


(81,351)

Other non-cash items, net

20,659


24,336

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




Increase in accounts receivable

(43,341)


(43,367)

Increase in inventories

(17,455)


(12,308)

Decrease in trade accounts payable

(15,449)


(11,840)

Net change in other current assets and liabilities

27,380


25,621

Net change in other long-term assets and liabilities

(3,476)


(2,372)

NET CASH PROVIDED BY OPERATING ACTIVITIES

118,605


87,051





INVESTING ACTIVITIES:




Capital expenditures

(39,947)


(31,048)

Acquisition of businesses, net of cash acquired

(892)


(4,676)

Proceeds from sale of property, plant and equipment

5,509


592

Other investing activities

778


(4,217)

NET CASH USED BY INVESTING ACTIVITIES

(34,552)


(39,349)





FINANCING ACTIVITIES:




Net change in borrowings

(10,143)


(2,755)

Proceeds from exercise of stock options

4,010


13,204

Excess tax benefits from stock-based compensation

2,478


5,465

Purchase of shares for treasury

(119,333)


(69,677)

Cash dividends paid to shareholders

(37,119)


(16,580)

Transactions with non-controlling interests

(2,330)


(2,809)

NET CASH USED BY FINANCING ACTIVITIES

(162,437)


(73,152)





Effect of exchange rate changes on Cash and cash equivalents

(17,156)


(4,625)

DECREASE IN CASH AND CASH EQUIVALENTS

(95,540)


(30,075)

Cash and cash equivalents at beginning of period

299,825


286,464

Cash and cash equivalents at end of period

$

204,285


$

256,389





Cash dividends paid per share

$

0.46


$

0.20

 

 

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 June 30, 2014






















Net sales

$

429,490



$

115,574



$

66,997



$

39,051



$

77,419






$

728,531


Inter-segment sales

33,360



5,494



3,600



35



2,262



(44,751)




Total

$

462,850



$

121,068



$

70,597



$

39,086



$

79,681



$

(44,751)



$

728,531























EBIT (1)

$

91,216



$

13,934



$

473



$

1,527



$

7,178



$

600



$

114,928


As a percent of total sales

19.7

%


11.5

%


0.7

%


3.9

%


9.0

%





15.8

%

Special items (gain) charge (2)

$

(21)



$

965



$

(108)



$

3,468



$



$



$

4,304


EBIT, as adjusted (4)

$

91,195



$

14,899



$

365



$

4,995



$

7,178



$

600



$

119,232


As a percent of total sales

19.7

%


12.3

%


0.5

%


12.8

%


9.0

%





16.4

%

Three months ended June 30, 2013






















Net sales

$

419,069



$

108,661



$

69,239



$

44,503



$

85,960



$



$

727,432


Inter-segment sales

35,529



4,330



4,374



51



2,674



(46,958)




Total

$

454,598



$

112,991



$

73,613



$

44,554



$

88,634



$

(46,958)



$

727,432























EBIT (1)

$

82,511



$

9,457



$

143



$

8,527



$

7,343



$

(1,538)



$

106,443


As a percent of total sales

18.2

%


8.4

%


0.2

%


19.1

%


8.3

%





14.6

%

Special items (gain) charge (3)

$

266



$

75



$

510



$

2,538



$



$



$

3,389


EBIT, as adjusted (4)

$

82,777



$

9,532



$

653



$

11,065



$

7,343



$

(1,538)



$

109,832


As a percent of total sales

18.2

%


8.4

%


0.9

%


24.8

%


8.3

%





15.1

%

Six months ended June 30, 2014






















Net sales

$

831,396



$

220,980



$

128,283



$

83,044



$

149,890



$



$

1,413,593


Inter-segment sales

66,303



11,354



8,049



64



4,380



(90,150)




Total

$

897,699



$

232,334



$

136,332



$

83,108



$

154,270



$

(90,150)



$

1,413,593























EBIT (1)

$

162,627



$

23,187



$

(158)



$

(4,373)



$

13,236



$

3,491



$

198,010


As a percent of total sales

18.1

%


10.0

%


(0.1)

%


(5.3)

%


8.6

%





14.0

%

Special items (gain) charge (2)

$

(68)



$

1,004



$

(117)



$

21,133



$



$



$

21,952


EBIT, as adjusted (4)

$

162,559



$

24,191



$

(275)



$

16,760



$

13,236



$

3,491



$

219,962


As a percent of total sales

18.1

%


10.4

%


(0.2)

%


20.2

%


8.6

%





15.6

%

Six months ended June 30, 2013






















Net sales

$

838,623



$

219,152



$

139,278



$

80,877



$

168,075



$



$

1,446,005


Inter-segment sales

64,514



8,609



8,758



71



4,898



(86,850)




Total

$

903,137



$

227,761



$

148,036



$

80,948



$

172,973



$

(86,850)



$

1,446,005























EBIT (1)

$

158,311



$

20,164



$

2,239



$

3,979



$

14,494



$

(2,141)



$

197,046


As a percent of total sales

17.5

%


8.9

%


1.5

%


4.9

%


8.4

%





13.6

%

Special items (gain) charge (3)

$

1,126



$

69



$

707



$

12,198



$



$



$

14,100


EBIT, as adjusted (4)

$

159,437



$

20,233



$

2,946



$

16,177



$

14,494



$

(2,141)



$

211,146


As a percent of total sales

17.7

%


8.9

%


2.0

%


20.0

%


8.4

%





14.6

%






















(1)

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

(2)

Special items in the three and six months ended June 30, 2014 include net charges primarily related to severance and other related costs from the consolidation of manufacturing operations partially offset by gains related to the sale of assets at rationalized operations and 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 six months ended June 30, 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 June 30th 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

$

419,069



$

(794)



$

8,462



$

4,435



$

(1,682)



$

429,490


Europe Welding

108,661



3,410





(212)



3,715



115,574


Asia Pacific Welding

69,239



(264)





370



(2,348)



66,997


South America Welding

44,503



(8,770)





16,709



(13,391)



39,051


The Harris Products Group

85,960



(3,984)





(4,571)



14



77,419


Consolidated

$

727,432



$

(10,402)



$

8,462



$

16,731



$

(13,692)



$

728,531


% Change


















North America Welding




(0.2)

%


2.0

%


1.1

%


(0.4)

%


2.5

%

Europe Welding




3.1

%




(0.2)

%


3.4

%


6.4

%

Asia Pacific Welding




(0.4)

%




0.5

%


(3.4)

%


(3.2)

%

South America Welding




(19.7)

%




37.5

%


(30.1)

%


(12.3)

%

The Harris Products Group




(4.6)

%




(5.3)

%




(9.9)

%

Consolidated




(1.4)

%


1.2

%


2.3

%


(1.9)

%


0.2

%





































Six Months Ended June 30th 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

$

838,623



$

(24,204)



$

16,331



$

5,675



$

(5,029)



$

831,396


Europe Welding

219,152



(2,077)





(1,762)



5,667



220,980


Asia Pacific Welding

139,278



(5,650)





45



(5,390)



128,283


South America Welding

80,877



(10,796)





30,410



(17,447)



83,044


The Harris Products Group

168,075



(3,584)





(13,775)



(826)



149,890


Consolidated

$

1,446,005



$

(46,311)



$

16,331



$

20,593



$

(23,025)



$

1,413,593


% Change


















North America Welding




(2.9)

%


1.9

%


0.7

%


(0.6)

v


(0.9)

%

Europe Welding




(0.9)

%




(0.8)

%


2.6

%


0.8

%

Asia Pacific Welding




(4.1)

%






(3.9)

%


(7.9)

%

South America Welding




(13.3)

%




37.6

%


(21.6)

%


2.7

%

The Harris Products Group




(2.1)

%




(8.2)

%


(0.5)

%


(10.8)

%

Consolidated




(3.2)

%


1.1

%


1.4

%


(1.6)

%


(2.2)

%

 

SOURCE Lincoln Electric Holdings, Inc.

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