SEC Filings

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

Adjusted Earnings Before Interest and Income Taxes: 
Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being Adjusted EBIT. EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
The following table presents Adjusted EBIT by segment for the three months ended September 30, 2017:
 
Three Months Ended September 30,
 
Increase (Decrease)
2017 vs. 2016
 
2017
 
2016
 
$
 
%
Americas Welding:
 

 
 

 
 

 
 

Net sales
$
398,289

 
$
377,520

 
20,769

 
5.5
%
Inter-segment sales
25,546

 
22,386

 
3,160

 
14.1
%
Total Sales
$
423,835

 
$
399,906

 
23,929

 
6.0
%
 
 
 
 
 
 
 
 
Adjusted EBIT (3)
$
74,096

 
$
68,285

 
5,811

 
8.5
%
As a percent of total sales (1)
17.5
%
 
17.1
%
 
 

 
0.4
%
International Welding:
 

 
 

 
 

 
 

Net sales
$
197,617

 
$
119,564

 
78,053

 
65.3
%
Inter-segment sales
5,451

 
3,688

 
1,763

 
47.8
%
Total Sales
$
203,068

 
$
123,252

 
79,816

 
64.8
%
 
 
 
 
 
 
 
 
Adjusted EBIT (4)
$
10,612

 
$
5,796

 
4,816

 
83.1
%
As a percent of total sales (2)
5.2
%
 
4.7
%
 
 

 
0.5
%
The Harris Products Group:
 

 
 

 
 

 
 

Net sales
$
73,585

 
$
70,562

 
3,023

 
4.3
%
Inter-segment sales
2,064

 
1,856

 
208

 
11.2
%
Total Sales
$
75,649

 
$
72,418

 
3,231

 
4.5
%
 
 
 
 
 
 
 
 
Adjusted EBIT
$
9,244

 
$
8,757

 
487

 
5.6
%
As a percent of total sales
12.2
%
 
12.1
%
 
 

 
0.1
%
Corporate / Eliminations:
 
 
 
 
 
 
 
Inter-segment sales
$
(33,061
)
 
$
(27,930
)
 
5,131

 
18.4
%
Adjusted EBIT (5)
570

 
913

 
(343
)
 
(37.6
%)
Consolidated:
 
 
 
 
 
 
 
Net sales
$
669,491

 
$
567,646

 
101,845

 
17.9
%
 
 
 
 
 
 
 
 
Adjusted EBIT
$
94,522

 
$
83,751

 
10,771

 
12.9
%
 
 
 
 
 
 
 
 
As a percent of sales
14.1
%
 
14.8
%
 
 

 
(0.7
%)

(1)
Increase for the three months ended September 30, 2017 as compared to September 30, 2016 driven by higher Net sales volumes, partially offset by rising input costs.
(2)
Increase for the three months ended September 30, 2017 as compared to September 30, 2016 driven by higher Net sales volumes.
(3)
The three months ended September 30, 2017 excludes pension settlement charges related to lump sum pension payments as discussed in Note 11 to the consolidated financial statements.
(4)
The three months ended September 30, 2017 excludes amortization of step up in value of acquired inventories related to the Air Liquide Welding acquisition as discussed in Note 3 to the consolidated financial statements.
(5)
The three months ended September 30, 2017 excludes a bargain purchase gain and acquisition transaction and integration costs related to the Air Liquide Welding acquisition as discussed in Note 3 to the consolidated financial statements.

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