Why Invest In ‘LECO’?

Lincoln Electric is a leading global provider of comprehensive arc welding, cutting and joining solutions.

Arc welding is the dominant joining method for steel buildings and other industrial construction, and our solutions play an important role in many industries and infrastructure projects around the world. Increased activity in construction, infrastructure improvement, general manufacturing and oil- and gas-related projects is fueling global demand for welding products.

We distinguish ourselves through our:
  • Technological expertise and innovative solutions that help customers reduce costs, improve productivity, enhance performance, minimize waste, and use resources more efficiently
  • Progressive management programs, developed by the Company’s founders, that are performance- and profitdriven and help drive our successful results
  • Culture of continuous improvement focusing on earnings growth, strong cash flow generation, a solid balance sheet, and increasing returns to shareholders


A Global Leader

Founded in 1895 and recognized as The Welding Experts®, our Company has a long track record of providing cutting-edge products and solutions to customers, and continues to pioneer new technology for the welding industry.

  • Strong brand for more than 119 years – known for quality, performance and productivity
  • Leading positions in key end markets and geographic regions
  • Global reach with an extensive footprint and distribution network in more than 160 countries
  • Complete and innovative solutions (welding equipment, consumables, services) for diversified end markets
  • Industry’s largest team of sector specialists, application engineers and sales specialists


Strong Execution of Growth Strategy

Our strategy is to capitalize on the following strengths to drive global growth:


Innovation

1 New Products are defined as solutions launched within the last five years.

We offer industry-leading expertise in metallurgy, chemistry, engineering and software design. Our global R&D centers include the David C. Lincoln Technology Center, the most advanced facility of its kind in the welding industry.


Geographic Expansion

With manufacturing operations and joint ventures in 19 countries, and broad distribution channels serving customers in more than 160 countries, we are well-positioned to serve multinational customers across their platforms and to capture growth in all regions of the world. We continue to expand our presence in targeted high-growth areas.


Industry-Leading Expertise

We draw from a broad portfolio of solutions, more than 500 technical sales, application engineers and system integrators, and leading customer service and application expertise to help customers maximize quality, productivity, and product performance. We also provide training for customer employees to ensure safe procedures.


Disciplined Acquisition Strategy

Acquisitions are a key component of our growth strategy and have helped extend our presence in high-growth regions and product markets such as alloy-based consumables, automated systems and cutting equipment. Our goal is to average 500 basis points of revenue growth each year from acquisition activity.



Financial Efficiency and Operational Excellence

Our operational and capital efficiency allows us to strategically invest in the business and maximize returns throughout the economic cycle. Primary areas of focus include:

  • Productivity improvement through continuous improvement initiatives
  • Working capital improvement
  • Maximizing cash flow generation to fund growth and to reward shareholders through dividend distributions and share repurchases



1 Diluted EPS excluding special items is a non-GAAP measure that management believes is important to investors to evaluate and compare the Company’s financial performance from period to period and management uses this information to assess and evaluate the Company’s underlying performance. Non-GAAP financial measures should be read in conjunction with GAAP financial measures as follows: GAAP Diluted Earnings Per Share: 2004: $0.97 as adjusted retroactively to reflect the May 31, 2011 2:1 stock split, 2013: $3.54
2 Return on Invested Capital is defined as a rolling 12 months of earnings excluding tax-effected interest divided by invested capital.
3 The cash conversion ratio reflects free cash flow (GAAP Cash Provided by Operations less Capital Expenditures) divided by GAAP Net Income. This ratio provides an additional view towards management’s ability to generate cash from Lincoln Electric operations.


Driving Stronger Results

As part of our 10-year “2020 Vision” plan, we have established the following strategic targets:

  • Compound annual growth rate (CAGR) of 10% in net sales from 2009 to 2020
  • Average operating profit margin of 15% through a complete economic cycle
  • Average 15% return on invested capital through a complete economic cycle
  • Operating working capital of 15% of net sales by 2020


Proven Performance

The following indicates our progress to date against our established goals:


MetricGoal2013 Achievement
Net Sales (excluding special items)10% CAGR 2009-202013.3% CAGR 2009-2013
Operating Profit Margin15% average 2009-2020*11.0% average 2009-2013
ROIC15% average 2009-2020*15.1% average 2009-2013
Working capital15% by 202017.6% as of 12/31/2013

*Average through the cycle


SAFE HARBOR DISCLAIMER The information on The Lincoln Electric Company’s investor website may contain forward-looking statements, estimates or projections based on expectations as of the original date of those materials. Those statements, estimates and projections are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in our reports filed with the SEC, including Forms 8-K, 10-Q and 10-K. Presented information may also discuss non-public financial and statistical information and non-GAAP financial measures. Discussion of non-public financial and statistical information and presentation of comparable GAAP measures and quantitative reconciliations can be found under the Quarterly Results section of this website. All information content was current only as of the date originally presented. We do not update or delete outdated information contained in website materials, and we disclaim any obligation to do so. All website content is the property of The Lincoln Electric Company and any use, dissemination or republication is prohibited without written consent.