Lincoln Electric(US:LECO)2022-10-27 19:37Financial 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]