Lincoln Electric(LECO)

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Lincoln Electric(LECO) - 2022 Q3 - Quarterly Report
2022-10-27 19:37
Financial Performance - Net sales for the three months ended September 30, 2022, increased by 16.0% to $935,240, compared to $806,454 in the same period of 2021[100] - Gross profit for the three months ended September 30, 2022, was $309,518, reflecting a 15.4% increase from $268,172 in 2021[100] - Operating income for the three months ended September 30, 2022, rose to $142,109, a 23.0% increase from $115,570 in the prior year[100] - Net income for the three months ended September 30, 2022, was $109,225, representing a 243.9% increase compared to $31,757 in 2021[100] - Diluted earnings per share for the three months ended September 30, 2022, increased to $1.87, up 253.4% from $0.53 in the same period last year[100] - For the nine months ended September 30, 2022, net sales increased by 18.4% to $2,830,277, compared to $2,389,929 in 2021[100] - Consolidated net income for Q3 2022 was $109.2 million, a 243.9% increase from $31.8 million in Q3 2021[111] - Adjusted EBIT for the consolidated segment rose by 25.6% to $156.8 million in Q3 2022 from $124.9 million in Q3 2021[111] - The company reported a 79.7% increase in net income for the nine months ended September 30, 2022, totaling $363.1 million compared to $202.0 million in 2021[114] - Adjusted diluted earnings per share for Q3 2022 was $2.04, up from $1.56 in Q3 2021[120] Segment Performance - The Americas Welding segment reported a 26.9% increase in net sales for the three months ended September 30, 2022, reaching $585,628[107] - The International Welding segment experienced a 4.7% decrease in net sales for the three months ended September 30, 2022, totaling $216,497[107] - The Harris Products Group saw a 13.0% increase in net sales for the three months ended September 30, 2022, amounting to $133,115[107] - Americas Welding net sales increased by 26.9% to $585.6 million in Q3 2022 compared to $461.5 million in Q3 2021[111] - International Welding net sales decreased by 4.7% to $216.5 million in Q3 2022 compared to $227.2 million in Q3 2021[111] - The Harris Products Group net sales increased by 13.0% to $133.1 million in Q3 2022 from $117.8 million in Q3 2021[111] - For the nine months ended September 30, 2022, Americas Welding net sales increased by 27.6% to $1.72 billion compared to $1.34 billion in the same period of 2021[114] - Adjusted EBIT for the International Welding segment increased by 25.0% to $97.3 million for the nine months ended September 30, 2022[114] Tax and Expenses - The effective tax rate for the three months ended September 30, 2022, was 20.6%, up from 17.3% in the same period of 2021[100] - The company implemented pricing actions to offset higher input costs, contributing to improved financial performance despite increased employee costs[112] Cash Flow and Investments - Cash provided by operating activities increased by $16,459, reaching $271,584 for the nine months ended September 30, 2022, compared to $255,125 in the same period of 2021[124] - Cash used by investing activities decreased significantly by $122,441, totaling $(72,257) in 2022, compared to $(194,698) in 2021, primarily due to lower acquisition costs[124] - Anticipated capital expenditures for 2022 are projected to be between $70,000 and $80,000, focusing on maintenance and efficiency improvements[126] - Cash and cash equivalents decreased by 26.8%, or $51,651, to $141,307 during the nine months ended September 30, 2022, from $192,958 as of December 31, 2021[126] Return on Investment - Return on invested capital (ROIC) as reported increased to 26.8% for the twelve months ended September 30, 2022, up from 17.5% in 2021[130] - Adjusted return on invested capital rose to 28.7% for the twelve months ended September 30, 2022, compared to 22.8% in 2021[130] Financing and Dividends - The company plans to fund global expansion primarily through operational cash flow, with potential access to capital markets for significant acquisitions[123] - The company paid a cash dividend of $0.56 per share, totaling $32,334, to shareholders as of September 30, 2022[125] - The fair value of long-term debt was approximately $597,972 as of September 30, 2022, compared to $776,655 as of December 31, 2021[133] - The company had $37,000 of outstanding borrowings under its $500,000 revolving credit agreement as of September 30, 2022[134]
Lincoln Electric(LECO) - 2022 Q3 - Earnings Call Transcript
2022-10-27 19:09
Financial Data and Key Metrics Changes - The company reported record sales of $935 million, representing a 21% organic growth driven by a 13% increase in prices and a 9% increase in volumes [5][6] - Adjusted earnings per share increased 31% to $2.04, despite a $0.07 foreign currency headwind [9][17] - The adjusted operating margin reached 16.4%, with a 24% incremental margin [7][16] - Cash flows from operations increased by 19% with a 94% cash conversion rate [9][21] Business Line Data and Key Metrics Changes - The Americas Welding segment's adjusted EBIT increased approximately 41% to $119 million, with an organic sales increase of approximately 27% [17][18] - The International Welding segment's adjusted EBIT decreased approximately 13% to $25 million, impacted by unfavorable foreign exchange translation [19] - The Harris Products Group's adjusted EBIT decreased approximately 10% to $14 million, with organic sales increasing approximately 11% [20] Market Data and Key Metrics Changes - Organic sales growth was achieved across all five end sectors, particularly in automotive transportation and energy investments [10][11] - Demand in heavy industries, general industries, and construction infrastructure maintained low to mid-teens percent growth rates [11][12] - The company noted challenges in Europe and China due to unique headwinds, but remains confident in growth in the Americas and automation [12] Company Strategy and Development Direction - The company is focused on its higher standard 2025 strategic initiatives, emphasizing customer service, innovation, and operational excellence [5][8] - A definitive agreement to acquire Fori Automation was announced, expected to enhance the company's automation portfolio and drive efficiencies [25][26] - The acquisition is projected to increase annual sales run rate to over $850 million, accelerating towards the $1 billion sales goal by 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of organic sales and incremental margin range for the year, despite caution regarding international markets [23][24] - The company is optimistic about the long-term growth catalysts, including the shortage of skilled welders and government investments in infrastructure [12] - Management highlighted the importance of addressing energy inflation and its potential impact on demand models in Europe [40][41] Other Important Information - The company returned $59 million to shareholders in the quarter through dividends and share repurchases, with a year-to-date total of $255 million [9][22] - The net debt position was reported at $638 million, allowing for a balanced capital allocation strategy [22] Q&A Session Summary Question: Automation trends and revenue targets - Management confirmed that the Fori acquisition was not initially part of the $1 billion revenue target for 2025, but it could potentially exceed that target due to strong growth trends in automation [32][34] Question: DC fast charge initiative - Management expressed excitement about the EV technologies and the potential market opportunity, highlighting their power electronics competencies [36][38] Question: International market stability - Management acknowledged uncertainty in Europe due to energy crises but noted stability in Turkey and India, with investments made in those regions [40][41] Question: Organic growth guidance - Management reiterated organic growth guidance, attributing potential moderation to tougher comparisons and currency impacts [45][46] Question: Fori acquisition details - Management did not disclose specific percentage mixes of welding automation versus material handling but emphasized the complementary nature of the acquisition [68][70]
Lincoln Electric (LECO) Presents at Morgan Stanley 10th Annual Laguna Conference
2022-09-16 19:46
September 15, 2022 LINCOLN ELECTRIC HOLDINGS, INC. Overview Lincoln Electric Holdings, Inc. Overview Virtual Nondeal Roadshow May 3, 2021 Gabe Bruno EVP & Chief Financial Officer Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or ...
Lincoln Electric (LECO) Presents At Jefferies Industrials Conference
2022-08-14 18:12
August 10, 2022 LINCOLN ELECTRIC HOLDINGS, INC. Overview Lincoln Electric Holdings, Inc. Overview Virtual Nondeal Roadshow May 3, 2021 Gabe Bruno EVP & Chief Financial Officer Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or imp ...
Lincoln Electric(LECO) - 2022 Q2 - Earnings Call Presentation
2022-07-28 19:10
July 28, 2022 Lincoln Electric Holdings, Inc. Overview Virtual Nondeal Roadshow May 3, 2021 Gabe Bruno EVP & Chief Financial Officer LINCOLN ELECTRIC HOLDINGS, INC. Q2 2022 Earnings Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed ...
Lincoln Electric(LECO) - 2022 Q2 - Quarterly Report
2022-07-28 19:09
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 0-1402 LINCOLN ELECTRIC HOLDINGS, INC. (Exact name of registrant as specified in its charter) Ohi ...
Lincoln Electric(LECO) - 2022 Q1 - Earnings Call Transcript
2022-04-28 21:48
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) Q1 2022 Earnings Conference Call April 28, 2022 10:00 AM ET Company Participants Amanda Butler - VP, IR and Communications Christopher Mapes - Chairman, President and CEO Gabriel Bruno - CFO Conference Call Participants Bryan Blair - Oppenheimer Mig Dobre - Baird Dillon Cumming - Morgan Stanley Steve Barger - KeyBanc Capital Markets Adam Farley - Stifel Operator Greetings, and welcome to the Lincoln Electric First Quarter 2022 Financial Results Conference Call. ...
Lincoln Electric(LECO) - 2022 Q1 - Quarterly Report
2022-04-28 18:37
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Ohio 34-1860551 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 22801 St. Clair Avenue, Cleveland, Ohio 44117 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition p ...
Lincoln Electric(LECO) - 2021 Q4 - Annual Report
2022-02-18 20:39
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or (Exact name of registrant as specified in its charter) Ohio 34-1860551 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 22801 St. Clair Avenue, Cleveland, Ohio 44117 (Address of principal executive offices) (Zip Code) (216) 481 ...
Lincoln Electric(LECO) - 2021 Q4 - Earnings Call Presentation
2022-02-10 14:24
LINCOLN ELECTRIC HOLDINGS, INC. Q4 & FY2021 Earnings Lincoln Electric Holdings, Inc. Overview Virtual Nondeal Roadshow May 3, 2021 Gabe Bruno EVP & Chief Financial Officer February 10, 2022 Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those ex ...