SEC Filings

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

Net Sales:
The following tables summarize the impact of volume, acquisitions, price and foreign currency exchange rates on Net sales for the three and nine months ended September 30, 2017 on a consolidated basis:
Three Months Ended September 30th
 
 
 
Change in Net Sales due to:
 
 
 
 
Net Sales
2016
 
Volume
 
Acquisitions
 
Price
 
Foreign Exchange
 
Net Sales
2017
Lincoln Electric Holdings, Inc.
 
$
567,646

 
$
21,439

 
$
62,660

 
$
10,039

 
$
7,707

 
$
669,491

 
 
 
 
 
 
 
 
 
 
 
 
 
% Change
 
 

 
 

 
 

 
 

 
 

 
 

Lincoln Electric Holdings, Inc.
 
 

 
3.8
%
 
11.0
%
 
1.8
%
 
1.4
%
 
17.9
%
Nine Months Ended September 30th
 
 
 
Change in Net Sales due to:
 
 
 
 
Net Sales
2016
 
Volume
 
Acquisitions
 
Price
 
Foreign Exchange
 
Net Sales
2017
Lincoln Electric Holdings, Inc.
 
$
1,710,786

 
$
56,622

 
$
67,352

 
$
37,099

 
$
5,387

 
$
1,877,246

Lincoln Electric Holdings, Inc. (excluding Venezuela)
 
1,699,973

 
67,435

 
67,352

 
37,099

 
5,387

 
1,877,246

 
 
 
 
 
 
 
 
 
 
 
 
 
% Change
 
 

 
 

 
 

 
 

 
 

 
 

Lincoln Electric Holdings, Inc.
 
 

 
3.3
%
 
3.9
%
 
2.2
%
 
0.3
%
 
9.7
%
Lincoln Electric Holdings, Inc. (excluding Venezuela)
 
 
 
4.0
%
 
4.0
%
 
2.2
%
 
0.3
%
 
10.4
%
Net sales increased in the three and nine months ended September 30, 2017 primarily as a result of acquisitions, improved volume due to higher demand and increased product pricing. Net sales for the nine months ended September 30, 2016 include $10,813 in sales from the Company's Venezuelan operations. The increase in net sales from acquisitions in the three and nine months ended September 30, 2017 was driven by acquired companies within Americas Welding and International Welding.
Gross Profit: 
Gross profit for the three and nine months ended September 30, 2017 decreased, as a percent of sales, compared to the prior year due to rising input costs. The three and nine months ended September 30, 2017 includes a last-in, first-out ("LIFO") charge of $2,196 and $5,855, respectively, as compared with a LIFO charge of $452 and $2,474, respectively, in the three and nine months ended September 30, 2016.
Selling, General & Administrative ("SG&A") Expenses:
SG&A expenses increased for the three and nine months ended September 30, 2017 as compared to September 30, 2016 due to SG&A from acquisitions, higher compensation costs, as well as acquisition transaction and integration costs, partially offset by lower legal professional fees.
Pension Settlement Charges
In the three and nine months ended September 30, 2017, the Company recorded pension settlement charges of $5,283, $3,260 after-tax, related to lump sum pension payments.
Loss on Deconsolidation of Venezuelan Subsidiary:
In the nine months ended September 30, 2016, the Company recorded a loss of $34,348, $33,251 after-tax, related to the deconsolidation of its Venezuelan subsidiary. See Note 1 to the consolidated financial statements for additional information.
Bargain Purchase Gain:
In the three and nine months ended September 30, 2017, the Company recorded a bargain purchase gain of $51,585 related to the Air Liquide Welding acquisition. See Note 3 to the consolidated financial statements for additional information.
Equity Earnings in Affiliates:
Equity earnings in affiliates has remained relatively flat in the comparable periods.



24