Lincoln Electric: Q3 2014 report

Lincoln Electric Holdings, Inc. has reported a Q3 2014 net income of US$ 45.7 million, or US$ 0.57 per diluted share, which includes rationalisation and asset impairment charges of US$ 29.1 million.

This compares with net income of US$ 66.0 million, or US$ 0.80 per diluted share, in the comparable 2013 period.

Adjusted net income was US$ 74.9 million, or US$ 0.94 per diluted share, compared to adjusted net income of US$ 71.1 million, or US$ 0.86 per diluted share, in the comparable 2013 period.

Sales increased 3.5% to US$ 715.8 million in Q3 2014 versus US$ 691.9 million in the comparable 2013 period.

Operating income for Q3 decreased 20.0% to US$ 76.1 million, or 10.6% of sales, from US$ 95.2 million, or 13.8% of sales, in the comparable 2013 period.

Adjusted operating income increased 3.7% to US$ 105.2 million or 14.7% of sales, compared with US$ 101.5 million, or 14.7% of sales in 2013.

Adjusted operating income excludes the effect of rationalization and asset impairment charges of US$ 29.1 million.

These non-cash asset impairment charges primarily related to a planned divestiture of manufacturing capacity in the Asia Pacific Welding segment of US$ 32.4 million partially offset by net gains of US$ 3.4 million primarily representing a gain on the sale of real estate.

These actions are part of continuing strategic repositioning initiatives in the region to improve mix, profitability, and returns.

Christopher L. Mapes, Chairman, President and Chief Executive Officer stated, "We are pleased with the underlying quality of our earnings this quarter, which were driven by strong top-line growth and margin contributions from our North America Welding and Europe Welding segments.

“This performance more than offset a challenging year-over-year comparison from our Venezuela business. Looking ahead, improving end market trends and demand for our innovative solutions combined with benefits from our strategic initiatives and accelerated returns, position us well to continue to deliver value to all of our stakeholders."

Edited from source by Elizabeth Corner

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