SEC Filings

10-Q
LINCOLN ELECTRIC HOLDINGS INC filed this Form 10-Q on 10/30/2017
Entire Document
 

Results of Operations
The following table shows the Company's results of operations:
 
Three Months Ended September 30,
 
2017
 
2016
 
Increase (Decrease)
2017 vs 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
$
 
%
Net sales
$
669,491

 
 
 
$
567,646

 
 
 
101,845

 
17.9
%
Cost of goods sold
449,975

 
 
 
367,834

 
 
 
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

 
 
 

 
 
 
5,283

 
100.0
%
Bargain purchase gain
(51,585
)
 
 
 

 
 
 
51,585

 
100.0
%
Operating income
133,070

 
19.9
%
 
81,829

 
14.4
%
 
51,241

 
62.6
%
Interest income
1,327

 
 
 
360

 
 
 
967

 
268.6
%
Equity earnings in affiliates
766

 
 
 
619

 
 
 
147

 
23.7
%
Other income
1,401

 
 
 
1,303

 
 
 
98

 
7.5
%
Interest expense
(5,922
)
 
 
 
(3,815
)
 
 
 
2,107

 
55.2
%
Income before income taxes
130,642

 
19.5
%
 
80,296

 
14.1
%
 
50,346

 
62.7
%
Income taxes
24,531

 
 
 
20,257

 
 
 
4,274

 
21.1
%
Effective tax rate
18.8
%
 
 
 
25.2
%
 
 
 
 
 
 
Net income including non-controlling interests
106,111

 
 
 
60,039

 
 
 
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
%
Diluted earnings per share
$
1.59

 
 
 
$
0.89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
2017
 
2016
 
Increase (Decrease)
2017 vs 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
$
 
%
Net sales
$
1,877,246

 


 
$
1,710,786

 


 
166,460

 
9.7
%
Cost of goods sold
1,236,386

 


 
1,118,945

 


 
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

 


 

 


 
5,283

 
100.0
%
Loss on deconsolidation of Venezuelan subsidiary

 


 
34,348

 


 
(34,348
)
 
(100.0
%)
Bargain purchase gain
(51,585
)
 
 
 

 
 
 
51,585

 
100.0
%
Operating income
302,198

 
16.1
%
 
205,203

 
12.0
%
 
96,995

 
47.3
%
Interest income
3,349

 


 
1,225

 


 
2,124

 
173.4
%
Equity earnings in affiliates
2,001

 


 
2,084

 


 
(83
)
 
(4.0
%)
Other income
3,293

 


 
2,552

 


 
741

 
29.0
%
Interest expense
(18,333
)
 


 
(11,828
)
 


 
6,505

 
55.0
%
Income before income taxes
292,508

 
15.6
%
 
199,236

 
11.6
%
 
93,272

 
46.8
%
Income taxes
69,218

 


 
54,264

 


 
14,954

 
27.6
%
Effective tax rate
23.7
%
 
 
 
27.2
%
 
 
 
 
 
 
Net income including non-controlling interests
223,290

 


 
144,972

 


 
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
%
Diluted earnings per share
$
3.35

 
 
 
$
2.11

 
 
 


 



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