Financial Performance - Q3 2013 - Net sales decreased slightly by 0.8% year-over-year, from $697.6 million to $691.9 million[5, 10] - Adjusted operating income increased by 10.6% year-over-year, from $91.8 million to $101.5 million, with an adjusted operating profit margin of 14.7%, up 150 basis points[4, 5, 10] - Adjusted diluted EPS increased by 7.5% year-over-year, from $0.80 to $0.86[4, 5, 10] - Cash flow from operations increased significantly by 88% to $155 million[4] - The company's ROIC stood at 18.5%[4, 30] Segment Performance - Q3 2013 - Americas Welding segment net sales increased by 3.5% year-over-year, from $390.3 million to $404.1 million, with an adjusted EBIT margin of 17.1%, up 20 basis points[12] - Europe Welding segment net sales decreased by 5.7% year-over-year, from $104.5 million to $98.5 million, with an adjusted EBIT margin of 7.6%, down 30 basis points[14] - Asia Pacific Welding segment net sales decreased significantly by 16.3% year-over-year, from $76.3 million to $63.8 million, with an adjusted EBIT margin of -1.4%, down 400 basis points[16] - The Harris Products Group net sales increased by 16.1% year-over-year, from $44.5 million to $51.7 million, with a substantial adjusted EBIT margin increase of 1,370 basis points to 30.7%[18] - The Other segment net sales decreased by 10.1% year-over-year, from $81.9 million to $73.7 million, with an adjusted EBIT margin of 9.1%, down 10 basis points[20] Capital Allocation - The company returned $60 million in cash to shareholders through share repurchases and dividends[4] - Share repurchases increased by 120% to $44 million[29] - Dividends increased by 16% to $16 million[32] Strategic Initiatives - The company is focused on optimizing operations and profitability, driving improved shareholder returns[7, 8] - Automation investment continues, including a new facility in Brazil and expansion in Mexico[9] - The company expects $8 to $10 million in incremental benefits from prior actions in 2013[9]

Financial Performance - Full Year 2013 - Record operating profit margin was reported at 14.3%, with an adjusted margin of 15.0%[4] - Record cash flow from operations reached $339 million[4] - Record EPS was reported at $3.54, with an adjusted EPS of $3.77[4] - The company achieved a solid ROIC of 18.9%[4] - A record $217 million was returned to shareholders through share repurchases and dividends[4] - Net sales remained relatively flat year-over-year at approximately $2.853 billion[5] Financial Performance - Q4 2013 - Net sales increased by 4.4% year-over-year to $714.8 million[11] - Operating income increased significantly by 38.7% year-over-year to $118.9 million[11] - Net income increased by 42.3% year-over-year to $88.3 million[11] - Diluted EPS increased by 44.6% year-over-year to $1.07[11] Capital Allocation - Dividends for FY2013 totaled $49 million, with a 15% increase announced for 2014[28, 30] - Share repurchases for FY2013 increased by 107% to $168 million[28, 30] - Capital expenditures for FY2013 increased by 43% to $76 million, driven by the Venezuela facility purchase[28, 30] Segment Performance - Q4 2013 - Americas net sales were $410 million, a 4.4% increase year-over-year, with an adjusted EBIT margin of 19.2%[13] - Europe, Middle East, and Africa net sales were $111.9 million, a 4.1% increase year-over-year, with an adjusted EBIT margin of 6.9%[15] - Asia Pacific net sales were $63.2 million, a 10.0% decrease year-over-year, with an adjusted EBIT margin of -0.2%[17] - South America net sales were $63.3 million, a substantial 58.5% increase year-over-year, with an adjusted EBIT margin of 39.8%[19] - The Other segment net sales were $66.4 million, a 10.3% decrease year-over-year, with an adjusted EBIT margin of 9.3%[20]

Financial Performance - Lincoln Electric's Q3 2014 reported sales increased by 3.5%, and by 5.8% excluding foreign exchange impacts[4] - The company's Q3 2014 adjusted EPS increased by 9% to $0.94[4] - Cash returned to shareholders increased by 146% to $148 million in Q3 2014[4] Segment Performance - North America net sales increased by 8.8% with volume up 5.7%[14] - Europe net sales increased by 9.1% with volume up 12.5%[15] - Asia Pacific net sales decreased by 10.1% with volume down 11.0%[17] - South America net sales decreased by 36.5% with volume down 40.3%[18] - Harris net sales increased by 6.4% with volume up 7.4%[21] Capital Allocation - Dividends increased by 11% to $18 million[27] - Share repurchases increased by 196% to $130 million[27] - Capital expenditures decreased by 46% to $15 million[27]

Financial Data and Key Metrics Changes - The company reported a 2.4% increase in first quarter sales to $1.4 billion, driven by a 4.9% benefit from acquisitions and a 2.6% increase from higher prices, partially offset by a 3.8% decline in volumes [13] - Adjusted operating income margin declined by 60 basis points to 16.9%, with acquisitions and the impact from Turkey contributing to an unfavorable 110 basis point impact [7][16] - Adjusted earnings per share were $2.16, slightly lower than expected, impacted by a $0.05 headwind from Turkey and unfavorable foreign exchange [8][16] - The company generated record cash flows with a 130% cash conversion ratio and returned $150 million to shareholders through dividends and share repurchases [8][22] Business Line Data and Key Metrics Changes - Americas Welding sales increased approximately 5%, driven by nearly 8% from acquisitions and 2% from higher prices, but were offset by 4% lower volumes [16] - International Welding segment sales declined approximately 7%, primarily due to 6% lower volumes, but would have increased 3% excluding Turkey's impact [19] - Harris Products Group saw a 9% increase in sales, with a 9.5% increase in price and a 60 basis point increase in volumes, reflecting strength in the HVAC industry [20] Market Data and Key Metrics Changes - Organic sales declined 1.2% in the quarter, with a 190 basis point unfavorable impact from Turkey [10] - Automation's organic sales remained steady year over year, with double-digit international growth offset by ongoing compression in the American region [10] - Heavy Industries remained challenged, with expectations of continued difficulties until production activity normalizes in the agricultural sector [11] Company Strategy and Development Direction - The company is focused on driving margin improvement and increasing returns to shareholders while managing evolving market conditions [5] - Strategic operational initiatives are being advanced to mitigate inflation and improve profitability [12] - The company is committed to maintaining a price-cost neutral position while responding to tariffs and inflationary pressures [78] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding customer capital spending, which is impacting automation demand and overall volume performance [39][40] - The company expects to generate incremental savings of $15 million to $20 million year over year in the second quarter, with a potential easing in savings rate in the third quarter [9] - There is uncertainty regarding the back half of the year due to delayed decision-making from customers and evolving trade policies [72] Other Important Information - The company has temporarily suspended merit increases to manage costs until customer demand trends are clearer [9] - Full year 2025 organic sales are expected to be relatively flat year over year, with a focus on mitigating the impact of tariffs through pricing and operational initiatives [23][25] Q&A Session Summary Question: Can you discuss growth excluding heavy industries and volume trends? - Management noted that while four out of five end markets showed growth, there is uncertainty about sustaining that momentum due to cautious capital investment spending [30][34] Question: What are customers looking for to resume capital projects? - Management indicated that customers are delaying decisions due to uncertainty in trade policies and macroeconomic conditions [38] Question: What is the split between direct price increases and surcharges? - Management stated that pricing is essentially flattish in the first quarter, with a mix of traditional pricing and surcharges to address tariffs [44] Question: How are the integrations of Red Viking and Van Aire progressing? - Integration of both acquisitions is on schedule, but results are expected to be dilutive in the first three years [47][49] Question: What is the outlook for automation business hitting $1 billion this year? - Management expressed that while the fundamentals are strong, they do not expect to hit the $1 billion target due to current order patterns and capital investment trends [56] Question: How are tariffs impacting cost structures? - Management highlighted that approximately 20% of overall COGS is exposed to tariffs, affecting steel and components sourced from various countries [74] Question: Will pricing gains be retained if the tariff situation improves? - Management indicated they will remain agile and responsive to market conditions, managing pricing based on evolving circumstances [80]

April 30, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q1 2025 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 or implied. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect, ...