Lincoln Electric(LECO) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 were $984 million, a decrease of 4.8% compared to the prior year[1][2] - EPS for Q3 2024 was $1.77, down from $2.22 in the prior year, with adjusted EPS at $2.14 compared to $2.40[1][2] - For the nine months ended September 30, 2024, net income was $325.9 million, or $5.68 EPS, down from $388.6 million, or $6.67 EPS in the prior year[4][12] - Total sales for the nine months decreased 4.7% to $2.99 billion, reflecting a 6.1% decrease in organic sales[5][12] - Net income for Q3 2024 was $100,756, down 22.1% from $129,343 in Q3 2023[15] - Net income for the three months ended September 30, 2024, was $100,756, a decrease of 22% from $129,343 in the same period of 2023[17] - The net income for the nine months ended September 30, 2024, was $325,879 thousand, or 10.9% of total sales, compared to $388,605 thousand and 12.4% in the prior year[20] Operating Income - Operating income margin was 14.8%, with adjusted operating income margin at 17.3%[1][2] - Operating income for Q3 2024 was reported at $145,560, a decrease of 15.1% from $171,441 in Q3 2023[15] - Adjusted operating income for Q3 2024 was $169,756, compared to $183,367 in Q3 2023, reflecting a decline of 7.4%[15] Cash Flow and Dividends - Cash flows from operations reached $199 million, achieving a cash conversion rate of 134%[1] - The company returned $91 million to shareholders through dividends and share repurchases[1] - The Board declared a quarterly cash dividend of $0.75 per share, a 5.6% increase from the previous dividend[6] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $503,182, down from $545,880 in 2023, reflecting a decrease of approximately 7%[18] - Cash dividends paid per share increased to $2.13 for the nine months ended September 30, 2024, compared to $1.92 in 2023, marking an increase of approximately 11%[18] Assets and Liabilities - Total assets increased to $3.66 billion as of September 30, 2024, compared to $3.38 billion at the end of 2023[13] - Total debt increased to $1,262,609 as of September 30, 2024, up from $1,105,210 at the end of 2023, representing a rise of 14.2%[14] - Invested capital rose to $2,601,799 as of September 30, 2024, compared to $2,414,062 at the end of 2023, an increase of 7.8%[14] - Average operating working capital to net sales increased to 19.1% as of September 30, 2024, compared to 17.1% at the end of 2023[14] Capital Expenditures and Investments - The company reported a significant increase in capital expenditures, totaling $85,117 for the nine months ended September 30, 2024, compared to $66,459 in 2023, representing a 28% increase[18] - The acquisition of businesses net of cash acquired amounted to $252,746 for the nine months ended September 30, 2024, a substantial increase from $32,685 in the same period of 2023[18] - The net cash used by investing activities for the nine months ended September 30, 2024, was $335,357, compared to $101,109 in 2023, indicating a significant increase in investment activity[18] Segment Performance - Total sales for the Americas Welding segment for the nine months ended September 30, 2024, were $2,008,685 thousand, a decrease from $2,092,882 thousand in the same period of 2023[20] - The Harris Products Group reported net sales of $395,355 thousand for the nine months ended September 30, 2024, compared to $392,517 thousand in the same period of 2023[20] - The Americas Welding segment experienced a volume decline of $57,292 thousand for the three months ended September 30, 2024, contributing to an overall decrease in consolidated net sales[21] - The International Welding segment reported a net sales decrease of 10.7% for the three months ended September 30, 2024, with total sales of $216,224 thousand[21] - Americas Welding reported net sales of $2,000,839, a decrease of 7.3% compared to the previous period[22] - International Welding net sales were $747,829, reflecting a decline of 6.8%[22] - The Harris Products Group achieved net sales of $384,454, down 3.9% from the prior year[22] Market Trends and Projections - The projected net sales for 2024 is $2,986,639, indicating a potential recovery[22] - Volume change contributed to a decrease of $(211,444) in consolidated net sales[22] - Price changes positively impacted consolidated net sales by $19,872[22] - Foreign exchange effects negatively impacted consolidated net sales by $(2,828)[22]