Lincoln Electric(LECO)2025-02-13 13:44Financial Performance - Fourth quarter 2024 net income was $140.2 million, or diluted EPS of $2.47, down from $156.6 million, or $2.70 EPS in the prior year[2] - Full year 2024 net income decreased to $466.1 million, or $8.15 EPS, compared to $545.2 million, or $9.37 EPS in 2023[5] - Fourth quarter 2024 sales decreased by 3.4% to $1,022.0 million, with a 7.5% decrease in organic sales and a 1.1% unfavorable foreign exchange impact[3] - Full year 2024 sales were $4,008.7 million, a decline of 4.4% from $4,191.6 million in 2023, driven by a 6.5% decrease in organic sales[6] - Operating income for the fourth quarter 2024 was $177.0 million, or 17.3% of sales, down from $204.0 million, or 19.3% of sales in the prior year[3] - Full year 2024 operating income was $636.5 million, or 15.9% of sales, compared to $717.8 million, or 17.1% of sales in 2023[6] - The company reported adjusted net income for 2024 of $531.3 million, a decrease of 3.0% from $547.9 million in the prior year[5] - Adjusted operating income for the full year 2024 was $704,390, down 2.0% from $718,787 in 2023, representing 17.6% of total sales[18] - Net income for Q4 2024 was $140,229, a decline of 10.4% compared to $156,644 in Q4 2023[18] - Adjusted net income for the full year 2024 was $531,265, a decrease of 3.0% from $547,922 in 2023[18] Cash Flow and Shareholder Returns - Cash flows from operations for 2024 totaled $599 million, with $426 million returned to shareholders through dividends and share repurchases[7] - Cash provided by operating activities for the full year 2024 was $598,977, a decrease of 10.3% from $667,542 in 2023[27] - Cash dividends paid per share increased to $2.84 in 2024 from $2.56 in 2023, reflecting a commitment to returning value to shareholders[27] Debt and Capital Structure - The company maintains a total debt to invested capital ratio of 48.7% as of December 31, 2024, up from 45.8% in the prior year[15] - Total debt increased to $1,261,075 in 2024 from $1,105,210 in 2023, reflecting a significant rise in financial leverage[22] Tax and Efficiency Metrics - The effective tax rate for the fourth quarter 2024 was 16.1%, compared to 20.5% in the prior year[13] - The effective tax rate for Q4 2024 was reported at 16.1%, down from 20.5% in Q4 2023[18] - The company reported a return on invested capital of 19.2% in 2024, down from 24.0% in 2023, indicating a decline in capital efficiency[22] Segment Performance - The Americas Welding segment reported net sales of $2,564,847 for the year ended December 31, 2024, down 3.4% from $2,655,546 in 2023[38] - The International Welding segment experienced a 10.2% decline in net sales, totaling $933,722 for the year ended December 31, 2024, compared to $1,040,006 in 2023[38] - The Harris Products Group saw a slight increase in net sales to $510,101 for the year ended December 31, 2024, up from $496,084 in 2023, marking a 2.8% growth[38] Future Outlook - Future outlook indicates a focus on market expansion and potential acquisitions to drive growth in the coming fiscal year[35]