SEC Filings

8-K
LINCOLN ELECTRIC HOLDINGS INC filed this Form 8-K on 10/27/2017
Entire Document
 

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
 
 
2017
 
% of Sales
 
2016
 
% of Sales
 
$
 
%
Net sales
 
$
669,491

 
100.0
%
 
$
567,646

 
100.0
%
 
$
101,845

 
17.9
%
Cost of goods sold
 
449,975

 
67.2
%
 
367,834

 
64.8
%
 
(82,141
)
 
(22.3
%)
Gross profit
 
219,516

 
32.8
%
 
199,812

 
35.2
%
 
19,704

 
9.9
%
Selling, general & administrative expenses
 
132,748

 
19.8
%
 
117,983

 
20.8
%
 
(14,765
)
 
(12.5
%)
Pension settlement charges
 
5,283

 
0.8
%
 

 

 
(5,283
)
 
(100.0
%)
Bargain purchase gain
 
(51,585
)
 
7.7
%
 

 

 
51,585

 
100.0
%
Operating income
 
133,070

 
19.9
%
 
81,829

 
14.4
%
 
51,241

 
62.6
%
Interest income
 
1,327

 
0.2
%
 
360

 
0.1
%
 
967

 
268.6
%
Equity earnings in affiliates
 
766

 
0.1
%
 
619

 
0.1
%
 
147

 
23.7
%
Other income
 
1,401

 
0.2
%
 
1,303

 
0.2
%
 
98

 
7.5
%
Interest expense
 
(5,922
)
 
0.9
%
 
(3,815
)
 
0.7
%
 
(2,107
)
 
(55.2
%)
Income before income taxes
 
130,642

 
19.5
%
 
80,296

 
14.1
%
 
50,346

 
62.7
%
Income taxes
 
24,531

 
3.7
%
 
20,257

 
3.6
%
 
(4,274
)
 
(21.1
%)
Effective tax rate
 
18.8
%
 
 

 
25.2
%
 
 

 
6.4
%
 
 
Net income including non-controlling interests
 
106,111

 
15.8
%
 
60,039

 
10.6
%
 
46,072

 
76.7
%
Non-controlling interests in subsidiaries’ loss
 
(15
)
 

 
(10
)
 

 
(5
)
 
(50.0
%)
Net income
 
$
106,126

 
15.9
%
 
$
60,049

 
10.6
%
 
$
46,077

 
76.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
1.61

 
 

 
$
0.90

 
 

 
$
0.71

 
78.9
%
Diluted earnings per share
 
$
1.59

 
 

 
$
0.89

 
 

 
$
0.70

 
78.7
%
Weighted average shares (basic)
 
65,806

 
 

 
66,477

 
 

 
 

 
 

Weighted average shares (diluted)
 
66,702

 
 

 
67,182

 
 

 
 

 
 

 
 
Nine Months Ended September 30,
 
Fav (Unfav) to
Prior Year
 
 
2017
 
% of Sales
 
2016
 
% of Sales
 
$
 
%
Net sales
 
$
1,877,246

 
100.0
%
 
$
1,710,786

 
100.0
%
 
$
166,460

 
9.7
%
Cost of goods sold
 
1,236,386

 
65.9
%
 
1,118,945

 
65.4
%
 
(117,441
)
 
(10.5
%)
Gross profit
 
640,860

 
34.1
%
 
591,841

 
34.6
%
 
49,019

 
8.3
%
Selling, general & administrative expenses
 
384,964

 
20.5
%
 
352,290

 
20.6
%
 
(32,674
)
 
(9.3
%)
Pension settlement charges
 
5,283

 
0.3
%
 

 

 
(5,283
)
 
(100.0
%)
Loss on deconsolidation of Venezuelan subsidiary
 

 

 
34,348

 
2.0
%
 
34,348

 
100.0
%
Bargain purchase gain
 
(51,585
)
 
2.7
%
 

 

 
51,585

 
100.0
%
Operating income
 
302,198

 
16.1
%
 
205,203

 
12.0
%
 
96,995

 
47.3
%
Interest income
 
3,349

 
0.2
%
 
1,225

 
0.1
%
 
2,124

 
173.4
%
Equity earnings in affiliates
 
2,001

 
0.1
%
 
2,084

 
0.1
%
 
(83
)
 
(4.0
%)
Other income
 
3,293

 
0.2
%
 
2,552

 
0.1
%
 
741

 
29.0
%
Interest expense
 
(18,333
)
 
1.0
%
 
(11,828
)
 
0.7
%
 
(6,505
)
 
(55.0
%)
Income before income taxes
 
292,508

 
15.6
%
 
199,236

 
11.6
%
 
93,272

 
46.8
%
Income taxes
 
69,218

 
3.7
%
 
54,264

 
3.2
%
 
(14,954
)
 
(27.6
%)
Effective tax rate
 
23.7
%
 
 

 
27.2
%
 
 

 
3.5
%
 
 
Net income including non-controlling interests
 
223,290

 
11.9
%
 
144,972

 
8.5
%
 
78,318

 
54.0
%
Non-controlling interests in subsidiaries’ loss
 
(32
)
 

 
(32
)
 

 

 

Net income
 
$
223,322

 
11.9
%
 
$
145,004

 
8.5
%
 
$
78,318

 
54.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
3.40

 
 

 
$
2.13

 
 

 
$
1.27

 
59.6
%
Diluted earnings per share
 
$
3.35

 
 

 
$
2.11

 
 

 
$
1.24

 
58.8
%
Weighted average shares (basic)
 
65,769

 
 

 
68,081

 
 

 
 

 
 

Weighted average shares (diluted)
 
66,679

 
 

 
68,784