LINCOLN ELECTRIC REPORTS RECORD 2012 SALES AND EPS; 4Q SALES OF $684.6 MILLION; FULL YEAR SALES OF $2.9 BILLION; 4Q OPERATING INCOME INCREASE OF 4.1%; ADJUSTED OPERATING INCOME INCREASE OF 10.2%; 4Q EPS OF $0.74, $0.79 AS ADJUSTED; FULL YEAR EPS OF $3.06, Feb 15 2013 PDF Version LINCOLN ELECTRIC REPORTS RECORD 2012 SALES AND EPS; 4Q SALES OF $684.6 MILLION; FULL YEAR SALES OF $2.9 BILLION; 4Q OPERATING INCOME INCREASE OF 4.1%; ADJUSTED OPERATING INCOME INCREASE OF 10.2%; 4Q EPS OF $0.74, $0.79 AS ADJUSTED; FULL YEAR EPS OF $3.06, $3.16 AS ADJUSTED CLEVELAND, Feb. 15, 2013 /PRNewswire/ -- Fourth Quarter and Full Year 2012 Highlights Sales were $684.6 million in the Fourth Quarter 2012; Sales were $2.9 billion for the Full year 2012, an increase of 5.9% from 2011 Operating income increased 4.1% to $85.7 million, or 12.5% of sales, from $82.4 million, or 11.9% of sales, in the Fourth Quarter 2011; Adjusted operating income increased 10.2% to $90.7 million, or 13.3% of sales Operating income increased 22.0% to $362.1 million, or 12.7% of sales, from $296.7 million, or 11.0% of sales, in the Full year 2011; Adjusted operating income increased 25.5% to $372.8 million, or 13.1% of sales Net income increased 7.5% to $62.1 million, or $0.74 per diluted share, from $57.7 million, or $0.68 per diluted share, in the Fourth Quarter 2011; Adjusted net income increased 14.2% to $65.9 million, or $0.79 per diluted share Net income increased 18.5% to $257.4 million, or $3.06 per diluted share, from $217.2 million, or $2.56 per diluted share, in the Full year 2011; Adjusted net income increased 25.0% to $265.8 million, or $3.16 per diluted share from $212.6 million, or $2.51 per diluted share Net cash provided by operating activities in the Fourth Quarter 2012 increased $21.0 million, or 33.3%, to $84.1 million; Net cash provided by operating activities in the Full year 2012 increased $134.0 million, or 69.2%, to $327.5 million Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported fourth quarter 2012 net income of $62.1 million, or $0.74 per diluted share. Adjusted net income was $65.9 million, or $0.79 per diluted share, compared to adjusted net income of $57.7 million, or $0.68 per diluted share, in the comparable 2011 period. Sales were $684.6 million in the fourth quarter 2012 versus $694.5 million in the comparable 2011 period, a decrease of 1.4%. Operating income for the fourth quarter increased $3.3 million to $85.7 million, or 12.5% of sales, from $82.4 million, or 11.9% of sales, in the comparable 2011 period. The effective tax rate for the fourth quarter 2012 was 29.3% compared with 30.8% in the same period of 2011. Sales for the twelve months ended December 31, 2012 were $2.9 billion versus $2.7 billion in 2011, an increase of 5.9%. Operating income for the twelve months ended December 31, 2012 increased $65.4 million to $362.1 million, or 12.7% of sales, from $296.7 million, or 11.0% of sales, in 2011. Net income for the twelve months ended December 31, 2012 was $257.4 million, or $3.06 per diluted share, compared with net income of $217.2 million, or $2.56 per diluted share, in 2011. Adjusted net income was $265.8 million, or $3.16 per diluted share, compared to adjusted net income of $212.6 million, or $2.51 per diluted share, in 2011. The effective tax rate for the twelve months ended December 31, 2012 was 30.4% compared with 28.0% in 2011. The twelve months ended December 31, 2011 included a favorable $4.8 million tax adjustment for tax audit settlements. "Our 2012 sales and earnings per share represent the highest in the Company's 118 year history," said John M. Stropki, Chairman of the Board. "We are also pleased to report that we expanded margins, significantly increased return on invested capital and generated record cash flows. "As we head into 2013, we continue to be cautious based on the uncertain global macroeconomic environment. We expect to see slower year-over-year overall growth in at least the first half of 2013; however, we remain very confident in our ability to execute our long-term strategic initiatives even in these challenging times." Christopher L. Mapes, President and Chief Executive Officer added, "The goals set in our '2020 Vision' remain a priority, with our focus on achieving significant earnings growth and superior returns on invested capital. We continue to explore attractive acquisitions that will shape our product portfolio and grow our global reach, invest in new product development and expand our global commercial infrastructure. Our continued attention to improvement in operating results and execution of our global growth strategies keep us well positioned to achieve our long-term goals." Net cash provided by operating activities increased $21.0 million to $84.1 million in the fourth quarter from $63.1 million for the comparable period in 2011. Fourth quarter cash flows from operations were reduced by a $33.4 million deposit related to a Canadian income tax assessment. During the quarter, the Company returned $51.5 million to shareholders through the payment of $30.6 million in dividends and the repurchase of $20.9 million, or 455,518 of the Company's common shares, for treasury. Dividends paid during the period included a December 28, 2012 dividend payment, which would normally have been paid in January 2013. The Company also invested $81.8 million in acquisitions and voluntarily contributed $10.1 million to its U.S. pension plans during the quarter. Net cash provided by operating activities increased $134.0 million to $327.5 million in the twelve months ended December 31, 2012 from $193.5 million in 2011. The 2012 cash flows from operations was reduced by a $89.4 million deposit related to a Canadian income tax assessment. During the period, the Company repaid its $80.0 million senior unsecured note. The Company also returned $154.1 million to shareholders through the payment of $73.1 million in dividends and the repurchase of $81.0 million, or 1,797,502 of the Company's common shares, for treasury during the period. The Company also invested $134.6 million in acquisitions and voluntarily contributed $63.4 million to its U.S. pension plans. The Company's Board of Directors declared a quarterly cash dividend of $0.20 per share, which was paid on December 28, 2012 to holders of record on December 17, 2012. Financial results for the fourth quarter 2012 can also be obtained at http://www.lincolnelectric.com/InvestorNews. A conference call to discuss fourth quarter 2012 financial results is scheduled for today, Friday, February 15, 2013, at 10:00 a.m., Eastern Time. An audio webcast of the call is accessible through the Company's website at http://www.lincolnelectric.com/InvestorWebcasts/. Adjusted operating income, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that management believes are important to investors to evaluate and compare the Company's financial performance from period to period. Management uses this information in assessing and evaluating the Company's underlying operating performance. Non-GAAP financial measures should be read in conjunction with the GAAP financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures. Please refer to the attached schedule for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. Lincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment and has a leading global position in the brazing and soldering alloys market. Headquartered in Cleveland, Ohio, Lincoln has 45 manufacturing locations, including operations and joint ventures in 19 countries and a worldwide network of distributors and sales offices covering more than 160 countries. For more information about Lincoln Electric and its products and services, visit the Company's website at http://www.lincolnelectric.com. The Company's expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "forecast," "guidance" or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company's operating results. The factors include, but are not limited to: general economic and market conditions; the effectiveness of operating initiatives; currency exchange and interest rates; adverse outcome of pending or potential litigation; possible acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; and the possible effects of events beyond our control, such as political unrest, acts of terror and natural disasters, on the Company or its customers, suppliers and the economy in general. For additional discussion, see "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K. Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Consolidated Statements of Income Three months ended December 31, 2012 Fav (Unfav) to Prior Year 2012 % of Sales 2011 % of Sales $ % Net sales $ 684,648 100.0% $ 694,513 100.0% $ (9,865) (1.4%) Cost of goods sold 471,616 68.9% 500,170 72.0% 28,554 5.7% Gross profit 213,032 31.1% 194,343 28.0% 18,689 9.6% Selling, general & administrative expenses 122,290 17.9% 111,981 16.1% (10,309) (9.2%) Rationalization and asset impairment charges (gains) 5,037 0.7% — — (5,037) (100.0%) Operating income 85,705 12.5% 82,362 11.9% 3,343 4.1% Interest income 1,340 0.2% 685 0.1% 655 95.6% Equity earnings in affiliates 743 0.1% 1,352 0.2% (609) (45.0%) Other income 670 0.1% 695 0.1% (25) (3.6%) Interest expense (853) (0.1%) (1,667) (0.2%) 814 48.8% Income before income taxes 87,605 12.8% 83,427 12.0% 4,178 5.0% Income taxes 25,639 3.7% 25,736 3.7% 97 0.4% Effective tax rate 29.3% 30.8% 1.5% Net income including non-controlling interests 61,966 9.1% 57,691 8.3% 4,275 7.4% Non-controlling interests in subsidiaries' loss (118) — (42) — (76) (181.0%) Net income $ 62,084 9.1% $ 57,733 8.3% $ 4,351 7.5% Basic earnings per share $ 0.75 $ 0.69 $ 0.06 8.7% Diluted earnings per share $ 0.74 $ 0.68 $ 0.06 8.8% Weighted average shares (basic) 82,651 83,384 Weighted average shares (diluted) 83,677 84,384 Twelve months ended December 31, Fav (Unfav) to Prior Year 2012 % of Sales 2011 % of Sales $ % Net sales $ 2,853,367 100.0% $ 2,694,609 100.0% $ 158,758 5.9% Cost of goods sold 1,986,711 69.6% 1,957,872 72.7% (28,839) (1.5%) Gross profit 866,656 30.4% 736,737 27.3% 129,919 17.6% Selling, general & administrative expenses 495,221 17.4% 439,775 16.3% (55,446) (12.6%) Rationalization and asset impairment charges (gains) 9,354 0.3% 282 — (9,072) (3,217.0%) Operating income 362,081 12.7% 296,680 11.0% 65,401 22.0% Interest income 3,988 0.1% 3,121 0.1% 867 27.8% Equity earnings in affiliates 5,007 0.2% 5,385 0.2% (378) (7.0%) Other income 2,685 0.1% 2,849 0.1% (164) (5.8%) Interest expense (4,191) (0.1%) (6,704) (0.2%) 2,513 37.5% Income before income taxes 369,570 13.0% 301,331 11.2% 68,239 22.6% Income taxes 112,354 3.9% 84,318 3.1% (28,036) (33.3%) Effective tax rate 30.4% 28.0% (2.4%) Net income including non-controlling interests 257,216 9.0% 217,013 8.1% 40,203 18.5% Non-controlling interests in subsidiaries' loss (195) — (173) — (22) (12.7%) Net income $ 257,411 9.0% $ 217,186 8.1% $ 40,225 18.5% Basic earnings per share $ 3.10 $ 2.60 $ 0.50 19.2% Diluted earnings per share $ 3.06 $ 2.56 $ 0.50 19.5% Weighted average shares (basic) 83,087 83,681 Weighted average shares (diluted) 84,175 84,708 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Three months ended December 31, Twelve months ended December 31, 2012 2011 2012 2011 Operating income as reported $ 85,705 $ 82,362 $ 362,081 $ 296,680 Special items (pre-tax): Rationalization and asset impairment charges (gains) (1) 5,037 — 9,354 282 Venezuelan statutory severance obligation (2) — — 1,381 — Adjusted operating income (4) $ 90,742 $ 82,362 $ 372,816 $ 296,962 Net income as reported $ 62,084 $ 57,733 $ 257,411 $ 217,186 Special items (after-tax): Rationalization and asset impairment charges (gains) (1) 3,823 — 7,442 237 Venezuelan statutory severance obligation (2) — — 906 — Adjustment for tax audit settlements (3) — — — (4,844) Adjusted net income (4) $ 65,907 $ 57,733 $ 265,759 $ 212,579 Diluted earnings per share as reported $ 0.74 $ 0.68 $ 3.06 $ 2.56 Special items 0.05 — 0.10 (0.05) Adjusted diluted earnings per share (4) $ 0.79 $ 0.68 $ 3.16 $ 2.51 Weighted average shares (diluted) 83,677 84,384 84,175 84,708 (1) The three and twelve months ended December 31, 2012 include net charges associated with severance, impairment and other costs from the consolidation of manufacturing operations initiated in 2012 partially offset by gains related to the sale of assets at rationalized operations. The twelve months ended December 31, 2011 includes charges associated with severance and other costs from the consolidation of manufacturing operations initiated in 2009 partially offset by gains related to the sale of assets at rationalized operations. (2) Represents an unfavorable adjustment due to a change in Venezuelan labor law which provides for increased employee severance obligations. (3) Represents a favorable adjustment for tax audit settlements. (4) Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-GAAP financial measures that management believes are important to investors to evaluate and compare the Company's financial performance from period to period. Management uses this information in assessing and evaluating the Company's underlying operating performance. Non-GAAP financial measures should be read in conjunction with the GAAP financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures. Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) Balance Sheet Highlights Selected Consolidated Balance Sheet Data December 31, 2012 December 31, 2011 Cash and cash equivalents $ 286,464 $ 361,101 Total current assets 1,132,816 1,219,270 Property, plant and equipment, net 486,236 470,451 Total assets 2,089,863 1,976,776 Total current liabilities 440,267 471,042 Short-term debt (1) 18,676 101,418 Long-term debt 1,599 1,960 Total equity 1,358,321 1,193,242 Net Operating Working Capital December 31, 2012 December 31, 2011 Accounts receivable $ 360,662 $ 386,197 Inventory 364,890 373,238 Trade accounts payable 209,647 176,312 Net operating working capital $ 515,905 $ 583,123 Net operating working capital to net sales (2) 18.8% 21.0% Invested Capital December 31, 2012 December 31, 2011 Short-term debt (1) $ 18,676 $ 101,418 Long-term debt 1,599 1,960 Total debt 20,275 103,378 Total equity 1,358,321 1,193,242 Invested capital $ 1,378,596 $ 1,296,620 Total debt / invested capital 1.5% 8.0% Return on invested capital (3) 18.7% 16.9% (1) Includes current portion of long-term debt. (2) Net operating working capital to net sales is defined as net operating working capital divided by annualized rolling three months of sales. (3) Return on invested capital is defined as rolling 12 months of earnings excluding tax-effected interest divided by invested capital. Lincoln Electric Holdings, Inc.Financial Highlights(In thousands, except per share amounts)(Unaudited) Condensed Consolidated Statements of Cash Flows Three months ended December 31, 2012 2011 OPERATING ACTIVITIES: Net income $ 62,084 $ 57,733 Non-controlling interests in subsidiaries' loss (118) (42) Net income including non-controlling interests 61,966 57,691 Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: Rationalization and asset impairment charges 1,383 — Depreciation and amortization 17,114 14,962 Equity loss (earnings) in affiliates, net 1,609 (655) Other non-cash items, net 11,423 16,508 Changes in operating assets and liabilities, net of effects from acquisitions: Decrease in accounts receivable 44,009 4,769 Decrease in inventories 35,118 47,048 Increase (decrease) in trade accounts payable 17,292 (26,316) Net change in other current assets and liabilities (61,032) (49,103) Decrease in accrued pensions (10,729) (1,286) Net change in other long-term assets and liabilities (34,010) (478) NET CASH PROVIDED BY OPERATING ACTIVITIES 84,143 63,140 INVESTING ACTIVITIES: Capital expenditures (13,408) (15,063) Acquisition of businesses, net of cash acquired (81,751) (3,889) Proceeds from sale of property, plant and equipment 849 243 NET CASH USED BY INVESTING ACTIVITIES (94,310) (18,709) FINANCING ACTIVITIES: Net change in borrowings (1,302) 10,827 Proceeds from exercise of stock options 6,081 4,140 Tax benefit from exercise of stock options 2,225 589 Purchase of shares for treasury (20,863) (9,367) Cash dividends paid to shareholders (30,602) (12,934) Other financing activities — 3,346 NET CASH USED BY FINANCING ACTIVITIES (44,461) (3,399) Effect of exchange rate changes on Cash and cash equivalents 417 (1,391) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (54,211) 39,641 Cash and cash equivalents at beginning of period 340,675 321,460 Cash and cash equivalents at end of period $ 286,464 $ 361,101 Cash dividends paid per share $ 0.37 $ 0.155 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Twelve months ended December 31, 2012 2011 OPERATING ACTIVITIES: Net income $ 257,411 $ 217,186 Non-controlling interests in subsidiaries' loss (195) (173) Net income including non-controlling interests 257,216 217,013 Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: Rationalization and asset impairment charges 1,740 23 Depreciation and amortization 65,334 62,051 Equity loss (earnings) in affiliates, net 160 (1,971) Other non-cash items, net 40,582 44,564 Changes in operating assets and liabilities, net of effects from acquisitions: Decrease (increase) in accounts receivable 57,759 (67,518) Decrease (increase) in inventories 28,286 (51,679) Increase in trade accounts payable 16,110 8,672 Net change in other current assets and liabilities 12,381 17,981 Decrease in accrued pensions (65,201) (31,776) Net change in other long-term assets and liabilities (86,883) (3,842) NET CASH PROVIDED BY OPERATING ACTIVITIES 327,484 193,518 INVESTING ACTIVITIES: Capital expenditures (52,715) (65,813) Acquisition of businesses, net of cash acquired (134,602) (66,229) Proceeds from sale of property, plant and equipment 1,387 1,246 Other investing activities (1,541) — NET CASH USED BY INVESTING ACTIVITIES (187,471) (130,796) FINANCING ACTIVITIES: Net change in borrowings (89,303) 7,949 Proceeds from exercise of stock options 18,776 11,351 Tax benefit from exercise of stock options 7,819 2,916 Purchase of shares for treasury (81,018) (36,997) Cash dividends paid to shareholders (73,112) (51,935) Other financing activities — 3,346 NET CASH USED BY FINANCING ACTIVITIES (216,838) (63,370) Effect of exchange rate changes on Cash and cash equivalents 2,188 (4,444) DECREASE IN CASH AND CASH EQUIVALENTS (74,637) (5,092) Cash and cash equivalents at beginning of period 361,101 366,193 Cash and cash equivalents at end of period $ 286,464 $ 361,101 Cash dividends paid per share $ 0.88 $ 0.62 Lincoln Electric Holdings, Inc.Segment Highlights(In thousands)(Unaudited) North America Welding Europe Welding Asia Pacific Welding South America Welding The Harris Products Group Corporate / Eliminations Consolidated Three months ended December 31, 2012 Net sales $ 392,939 $ 107,507 $ 70,223 $ 39,931 $ 74,048 $ — $ 684,648 Inter-segment sales 29,676 3,870 3,188 — 1,944 (38,678) — Total $ 422,615 $ 111,377 $ 73,411 $ 39,931 $ 75,992 $ (38,678) $ 684,648 EBIT (1) $ 75,925 $ 3,914 $ (5,090) $ 4,829 $ 5,544 $ 1,996 $ 87,118 As a percent of total sales 18.0% 3.5% (6.9%) 12.1% 7.3% 12.7% Special items charge (gain) (2) $ 273 $ 1,068 $ 3,696 $ — $ — $ — $ 5,037 EBIT, as adjusted (4) $ 76,198 $ 4,982 $ (1,394) $ 4,829 $ 5,544 $ 1,996 $ 92,155 As a percent of total sales 18.0% 4.5% (1.9%) 12.1% 7.3% 13.5% Three months ended December 31, 2011 Net sales $ 361,905 $ 126,942 $ 88,204 $ 40,673 $ 76,789 $ — $ 694,513 Inter-segment sales 30,895 4,047 4,893 120 1,761 (41,716) — Total $ 392,800 $ 130,989 $ 93,097 $ 40,793 $ 78,550 $ (41,716) $ 694,513 EBIT (1) $ 69,732 $ 8,904 $ (652) $ 3,295 $ 4,401 $ (1,271) $ 84,409 As a percent of total sales 17.8% 6.8% (0.7%) 8.1% 5.6% 12.2% Special items charge (gain) $ — $ — $ — $ — $ — $ — $ — EBIT, as adjusted (4) $ 69,732 $ 8,904 $ (652) $ 3,295 $ 4,401 $ (1,271) $ 84,409 As a percent of total sales 17.8% 6.8% (0.7%) 8.1% 5.6% 12.2% Twelve months ended December 31, 2012 Net sales $ 1,580,818 $ 452,227 $ 324,482 $ 161,483 $ 334,357 $ — $ 2,853,367 Inter-segment sales 131,062 16,048 14,829 38 8,549 (170,526) — Total $ 1,711,880 $ 468,275 $ 339,311 $ 161,521 $ 342,906 $ (170,526) $ 2,853,367 EBIT (1) $ 292,243 $ 33,765 $ 2,254 $ 16,920 $ 29,477 $ (4,886) $ 369,773 As a percent of total sales 17.1% 7.2% 0.7% 10.5% 8.6% 13.0% Special items charge (gain) (2) $ 827 $ 3,534 $ 4,993 $ 1,381 $ — $ — $ 10,735 EBIT, as adjusted (4) $ 293,070 $ 37,299 $ 7,247 $ 18,301 $ 29,477 $ (4,886) $ 380,508 As a percent of total sales 17.1% 8.0% 2.1% 11.3% 8.6% 13.3% Twelve months ended December 31, 2011 Net sales $ 1,309,499 $ 508,692 $ 376,276 $ 156,684 $ 343,458 $ — $ 2,694,609 Inter-segment sales 136,314 17,422 15,614 494 8,496 (178,340) — Total $ 1,445,813 $ 526,114 $ 391,890 $ 157,178 $ 351,954 $ (178,340) $ 2,694,609 EBIT (1) $ 227,924 $ 35,779 $ 2,739 $ 12,895 $ 25,151 $ 426 $ 304,914 As a percent of total sales 15.8% 6.8% 0.7% 8.2% 7.1% 11.3% Special items charge (gain) (3) $ — $ 392 $ (110) $ — $ — $ — $ 282 EBIT, as adjusted (4) $ 227,924 $ 36,171 $ 2,629 $ 12,895 $ 25,151 $ 426 $ 305,196 As a percent of total sales 15.8% 6.9% 0.7% 8.2% 7.1% 11.3% (1) EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. (2) Special items in the three and twelve month periods ended December 31, 2012 include rationalization and asset impairment charges (gains). Special items in the twelve months ended December 31, 2012 also include an unfavorable adjustment due to a change in Venezuelan labor law which provides for increased employee severance obligations. (3) Special items include rationalization and asset impairment charges (gains). (4) The primary profit measure used by management to assess segment performance is EBIT, as adjusted. EBIT for each operating segment is adjusted for special items to derive EBIT, as adjusted. Lincoln Electric Holdings, Inc. Change in Net Sales by Segment (In thousands) (Unaudited) Three Months Ended December 31st Change in Net Sales by Segment Change in Net Sales due to: Net Sales 2011 Volume Acquisitions Price Foreign Exchange Net Sales 2012 Operating Segments North America Welding $ 361,905 $ (2,722) $ 26,469 $ 6,072 $ 1,215 $ 392,939 Europe Welding 126,942 (15,952) — (2,252) (1,231) 107,507 Asia Pacific Welding 88,204 (18,138) — (429) 586 70,223 South America Welding 40,673 (1,700) — 2,894 (1,936) 39,931 The Harris Products Group 76,789 (2,058) — 704 (1,387) 74,048 Consolidated $ 694,513 $ (40,570) $ 26,469 $ 6,989 $ (2,753) $ 684,648 % Change North America Welding (0.8%) 7.3% 1.7% 0.3% 8.6% Europe Welding (12.6%) — (1.8%) (1.0%) (15.3%) Asia Pacific Welding (20.6%) — (0.5%) 0.7% (20.4%) South America Welding (4.2%) — 7.1% (4.8%) (1.8%) The Harris Products Group (2.7%) — 0.9% (1.8%) (3.6%) Consolidated (5.8%) 3.8% 1.0% (0.4%) (1.4%) Twelve Months Ended December 31st Change in Net Sales by Segment Change in Net Sales due to: Net Sales 2011 Volume Acquisitions Price Foreign Exchange Net Sales 2012 Operating Segments North America Welding $ 1,309,499 $ 112,898 $ 124,830 $ 37,124 $ (3,533) $ 1,580,818 Europe Welding 508,692 (36,199) 8,322 4,874 (33,462) 452,227 Asia Pacific Welding 376,276 (54,289) — 1,646 849 324,482 South America Welding 156,684 (1,284) — 15,584 (9,501) 161,483 The Harris Products Group 343,458 13,683 — (13,427) (9,357) 334,357 Consolidated $ 2,694,609 $ 34,809 $ 133,152 $ 45,801 $ (55,004) $ 2,853,367 % Change North America Welding 8.6% 9.5% 2.8% (0.3%) 20.7% Europe Welding (7.1%) 1.6% 1.0% (6.6%) (11.1%) Asia Pacific Welding (14.4%) — 0.4% 0.2% (13.8%) South America Welding (0.8%) — 9.9% (6.1%) 3.1% The Harris Products Group 4.0% — (3.9%) (2.7%) (2.6%) Consolidated 1.3% 4.9% 1.7% (2.0%) 5.9% SOURCE Lincoln Electric Holdings, Inc. Roy L. Morrow, +1-216-383-4893, Roy_Morrow@lincolnelectric.com "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Lincoln Electric Holdings Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
