Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO)
today reported fourth quarter 2023 net income of $156.6 million, or
diluted earnings per share (EPS) of $2.70, which includes special
item after-tax net gains of $14.6 million, or $0.25 EPS. This
compares with prior year period net income of $109.1 million, or
$1.87 EPS, which included special item after-tax net charges of
$4.1 million. Excluding special items, fourth quarter 2023
adjusted net income was $142 million, or $2.45 adjusted EPS.
This compares with adjusted net income of $113.2 million, or $1.94
adjusted EPS, in the prior year period.
Fourth quarter 2023 sales increased 13.7% to $1.1 billion
reflecting a 2.6% increase in organic sales, a 9.8% benefit from
acquisitions and 1.3% favorable foreign exchange. Operating
income for the fourth quarter 2023 was $204 million, or 19.3% of
sales. This compares with operating income of $141.5 million,
or 15.2% of sales, in the prior year period. Excluding
special items, adjusted operating income was $182.1 million, or
17.2% of sales, as compared with $146.8 million, or 15.8% of sales,
in the prior year period.
“I am pleased to report that we achieved record performance in
2023, reflecting strong demand for our solutions and effective
execution of our Higher Standard strategy,” commented Steven B.
Hedlund, President and Chief Executive Officer. “This achievement
is a fitting capstone to Chris Mapes’ eleven-year tenure leading
the company. We finished the year with good momentum across most
end markets.” Hedlund concluded, “Looking ahead, we will continue
to advance the business by focusing on our customers, bringing
innovative products to market and driving operational
excellence.”
Twelve Months 2023 Summary
Net income for the twelve months ended December 31, 2023 was
$545.2 million, or $9.37 EPS, which includes special item after-tax
net charges of $2.7 million, or $0.04 EPS. This compares with prior
period net income of $472.2 million, or $8.04 EPS, which included
special item after-tax net charges of $13.4 million, or $0.23 EPS.
Excluding special items, adjusted net income for the twelve months
ended December 31, 2023 increased 12.8% to $548 million, or $9.41
EPS, compared with $485.7 million, or $8.27 EPS, in the prior year
period.
Sales increased 11.4% to $4.2 billion in the twelve months ended
December 31, 2023 reflecting a 4% increase in organic sales, a 7.4%
benefit from acquisitions and 0.1% favorable foreign exchange.
Operating income for the twelve months ended December 31, 2023 was
$717.8 million, or 17.1% of sales. This compares with operating
income of $612.3 million, or 16.3% of sales, in the prior year
period. Excluding special items, adjusted operating income was
$718.8 million, or 17.1% of sales, as compared with $631.2 million,
or 16.8% of sales, in the prior year period.
(1) |
Cash conversion is defined as net cash provided by operating
activities less capital expenditures divided by adjusted net
income. |
Webcast Information
A conference call to discuss fourth quarter and full year 2023
financial results will be webcast live today, February 15, 2024, at
10:00 a.m., Eastern Time. Those interested in
participating via webcast in listen-only mode can access the event
here or on the Company's Investor Relations home page at
https://ir.lincolnelectric.com. For participants who would
like to participate via telephone, please dial (888) 440-4368
(domestic) or (646) 960-0856 (international) and use confirmation
code 6709091. A replay of the earnings call will be available via
webcast on the Company's website.
About Lincoln Electric
Lincoln Electric is the world leader in the engineering, design,
and manufacturing of advanced arc welding solutions, automated
joining, assembly and cutting systems, plasma and oxy-fuel cutting
equipment, and has a leading global position in brazing and
soldering alloys. Lincoln is recognized as the Welding Expert™ for
its leading materials science, software development, automation
engineering, and application expertise, which advance customers’
fabrication capabilities to help them build a better world.
Headquartered in Cleveland, Ohio, Lincoln operates 71 manufacturing
and automation system integration locations across 21 countries and
maintains a worldwide network of distributors and sales offices
serving customers in over 160 countries. For more information about
Lincoln Electric and its products and services, visit the Company’s
website at https://www.lincolnelectric.com.
Non-GAAP Information
Adjusted operating income, adjusted net income, adjusted EBIT,
adjusted effective tax rate, adjusted diluted earnings per share
(“adjusted EPS”), Organic sales, Cash conversion, adjusted net
operating profit after taxes and adjusted return on invested
capital (“adjusted ROIC”) are non-GAAP financial measures.
Management uses non-GAAP measures to assess the Company's operating
performance by excluding certain disclosed special items that
management believes are not representative of the Company's core
business. Management believes that excluding these special
items enables them to make better period-over-period comparisons
and benchmark the Company's operational performance against other
companies in its industry more meaningfully. Furthermore,
management believes that non-GAAP financial measures provide
investors with meaningful information that provides a more complete
understanding of Company operating results and enables investors to
analyze financial and business trends more thoroughly.
Non-GAAP financial measures should not be viewed in isolation, are
not a substitute for GAAP measures and have limitations including,
but not limited to, their usefulness as comparative measures as
other companies may define their non-GAAP measures differently.
Forward-Looking Statements
The Company’s expectations and beliefs concerning the future
contained in this news release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements reflect management’s current
expectations and involve a number of risks and uncertainties.
Forward-looking statements generally can be identified by the use
of words such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “forecast,” “guidance” or words of similar
meaning. Actual results may differ materially from such
statements due to a variety of factors that could adversely affect
the Company’s operating results. The factors include, but are
not limited to: general economic, financial and market conditions;
the effectiveness of commercial and operating initiatives;
completion of planned divestitures; interest rates;
disruptions, uncertainty or volatility in the credit markets
that may limit our access to capital; currency exchange rates and
devaluations; adverse outcome of pending or potential litigation;
actual costs of the Company’s rationalization plans; possible
acquisitions, including the Company’s ability to successfully
integrate acquisitions; market risks and price fluctuations related
to the purchase of commodities and energy; global regulatory
complexity; the effects of changes in tax law; tariff rates in the
countries where the Company conducts business; and the possible
effects of events beyond our control, such as the impact of the
Russia-Ukraine conflict, political unrest, acts of terror, natural
disasters and pandemics on the Company or its customers, suppliers
and the economy in general. For additional discussion, see
“Item 1A. Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022.
Lincoln Electric
Holdings, Inc.Financial
Highlights(In thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
|
|
|
|
Fav (Unfav) to |
|
|
Three Months Ended December 31, |
|
Prior Year |
|
|
2023 |
|
|
% of Sales |
|
2022 |
|
% of Sales |
|
$ |
|
% |
|
Net sales |
$ |
1,058,514 |
|
|
|
100.0 |
|
% |
$ |
930,934 |
|
100.0 |
% |
$ |
127,580 |
|
|
13.7 |
|
% |
Cost of goods sold |
|
687,484 |
|
|
|
64.9 |
|
% |
|
622,950 |
|
66.9 |
% |
|
(64,534 |
) |
|
(10.4 |
) |
% |
Gross profit |
|
371,030 |
|
|
|
35.1 |
|
% |
|
307,984 |
|
33.1 |
% |
|
63,046 |
|
|
20.5 |
|
% |
Selling, general &
administrative expenses |
|
188,931 |
|
|
|
17.8 |
|
% |
|
164,113 |
|
17.6 |
% |
|
(24,818 |
) |
|
(15.1 |
) |
% |
Rationalization and asset
impairment charges |
|
(21,932 |
) |
|
|
(2.1 |
) |
% |
|
2,383 |
|
0.3 |
% |
|
24,315 |
|
|
1,020.4 |
|
% |
Operating income |
|
204,031 |
|
|
|
19.3 |
|
% |
|
141,488 |
|
15.2 |
% |
|
62,543 |
|
|
44.2 |
|
% |
Interest expense, net |
|
8,663 |
|
|
|
0.8 |
|
% |
|
8,633 |
|
0.9 |
% |
|
(30 |
) |
|
(0.3 |
) |
% |
Other income |
|
1,662 |
|
|
|
0.2 |
|
% |
|
2,903 |
|
0.3 |
% |
|
(1,241 |
) |
|
(42.7 |
) |
% |
Income before income
taxes |
|
197,030 |
|
|
|
18.6 |
|
% |
|
135,758 |
|
14.6 |
% |
|
61,272 |
|
|
45.1 |
|
% |
Income taxes |
|
40,386 |
|
|
|
3.8 |
|
% |
|
26,612 |
|
2.9 |
% |
|
(13,774 |
) |
|
(51.8 |
) |
% |
Effective tax rate |
|
20.5 |
|
% |
|
|
|
|
19.6 |
% |
|
|
|
(0.9 |
) |
% |
|
|
Net income |
$ |
156,644 |
|
|
|
14.8 |
|
% |
$ |
109,146 |
|
11.7 |
% |
$ |
47,498 |
|
|
43.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
2.75 |
|
|
|
|
|
$ |
1.89 |
|
|
|
$ |
0.86 |
|
|
45.5 |
|
% |
Diluted earnings per
share |
$ |
2.70 |
|
|
|
|
|
$ |
1.87 |
|
|
|
$ |
0.83 |
|
|
44.4 |
|
% |
Weighted average shares
(basic) |
|
57,063 |
|
|
|
|
|
|
57,676 |
|
|
|
|
|
|
|
|
Weighted average shares
(diluted) |
|
57,911 |
|
|
|
|
|
|
58,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fav (Unfav) to |
|
|
Twelve Months Ended December 31, |
|
Prior Year |
|
|
2023 |
|
|
% of Sales |
|
2022 |
|
% of Sales |
|
$ |
|
% |
|
Net sales |
$ |
4,191,636 |
|
|
100.0 |
|
% |
$ |
3,761,211 |
|
100.0 |
% |
$ |
430,425 |
|
|
11.4 |
|
% |
Cost of goods sold |
|
2,726,191 |
|
|
65.0 |
|
% |
|
2,480,451 |
|
65.9 |
% |
|
(245,740 |
) |
|
(9.9 |
) |
% |
Gross profit |
|
1,465,445 |
|
|
35.0 |
|
% |
|
1,280,760 |
|
34.1 |
% |
|
184,685 |
|
|
14.4 |
|
% |
Selling, general &
administrative expenses |
|
758,910 |
|
|
18.1 |
|
% |
|
656,636 |
|
17.5 |
% |
|
(102,274 |
) |
|
(15.6 |
) |
% |
Rationalization and asset
impairment charges |
|
(11,314 |
) |
|
(0.3 |
) |
% |
|
11,788 |
|
0.3 |
% |
|
23,102 |
|
|
196.0 |
|
% |
Operating income |
|
717,849 |
|
|
17.1 |
|
% |
|
612,336 |
|
16.3 |
% |
|
105,513 |
|
|
17.2 |
|
% |
Interest expense, net |
|
44,371 |
|
|
1.1 |
|
% |
|
29,500 |
|
0.8 |
% |
|
(14,871 |
) |
|
(50.4 |
) |
% |
Other income |
|
13,388 |
|
|
0.3 |
|
% |
|
9,991 |
|
0.3 |
% |
|
3,397 |
|
|
34.0 |
|
% |
Income before income
taxes |
|
686,866 |
|
|
16.4 |
|
% |
|
592,827 |
|
15.8 |
% |
|
94,039 |
|
|
15.9 |
|
% |
Income taxes |
|
141,618 |
|
|
3.4 |
|
% |
|
120,603 |
|
3.2 |
% |
|
(21,015 |
) |
|
(17.4 |
) |
% |
Effective tax rate |
|
20.6 |
|
% |
|
|
|
20.3 |
% |
|
|
|
(0.3 |
) |
% |
|
|
Net income |
$ |
545,248 |
|
|
13.0 |
|
% |
$ |
472,224 |
|
12.6 |
% |
$ |
73,024 |
|
|
15.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
9.50 |
|
|
|
|
$ |
8.14 |
|
|
|
$ |
1.36 |
|
|
16.7 |
|
% |
Diluted earnings per
share |
$ |
9.37 |
|
|
|
|
$ |
8.04 |
|
|
|
$ |
1.33 |
|
|
16.5 |
|
% |
Weighted average shares
(basic) |
|
57,364 |
|
|
|
|
|
58,030 |
|
|
|
|
|
|
|
|
Weighted average shares
(diluted) |
|
58,221 |
|
|
|
|
|
58,749 |
|
|
|
|
|
|
|
|
Lincoln Electric
Holdings, Inc.Financial
Highlights(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
Balance Sheet
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated
Balance Sheet Data |
December 31, 2023 |
|
December 31, 2022 |
|
Cash and cash equivalents |
$ |
393,787 |
|
$ |
197,150 |
|
Accounts receivable, net |
|
538,830 |
|
|
541,529 |
|
Inventories |
|
562,864 |
|
|
665,451 |
|
Total current assets |
|
1,693,111 |
|
|
1,557,790 |
|
Property, plant and equipment,
net |
|
575,316 |
|
|
544,871 |
|
Total assets |
|
3,377,297 |
|
|
3,180,546 |
|
Trade accounts payable |
|
325,435 |
|
|
352,079 |
|
Total current liabilities |
|
754,610 |
|
|
852,897 |
|
Short-term debt (1) |
|
2,439 |
|
|
93,483 |
|
Long-term debt, less current
portion |
|
1,102,771 |
|
|
1,110,396 |
|
Total equity |
|
1,308,852 |
|
|
1,034,041 |
|
|
|
|
|
|
|
|
Operating Working
Capital |
December 31, 2023 |
|
December 31, 2022 |
|
Average operating working
capital to Net sales (2) |
|
17.1 |
% |
|
20.9 |
% |
|
|
|
|
|
|
|
Invested
Capital |
December 31, 2023 |
|
December 31, 2022 |
|
Short-term debt (1) |
$ |
2,439 |
|
$ |
93,483 |
|
Long-term debt, less current
portion |
|
1,102,771 |
|
|
1,110,396 |
|
Total debt |
|
1,105,210 |
|
|
1,203,879 |
|
Total equity |
|
1,308,852 |
|
|
1,034,041 |
|
Invested capital |
$ |
2,414,062 |
|
$ |
2,237,920 |
|
|
|
|
|
|
|
|
Total debt / invested
capital |
|
45.8 |
% |
|
53.8 |
% |
(1) |
Includes current portion of long-term debt. |
(2) |
Average operating working capital
to Net sales is defined as the sum of Accounts receivable,
Inventories and contract assets less Trade accounts payable and
contract liabilities as of period end divided by annualized rolling
three months of Net sales. |
Lincoln Electric
Holdings, Inc.Financial
Highlights(In thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Operating income as reported |
$ |
204,031 |
|
|
$ |
141,488 |
|
|
|
$ |
717,849 |
|
|
$ |
612,336 |
|
|
Special items (pre-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization and asset impairment charges (2) |
|
(21,932 |
) |
|
|
2,383 |
|
|
|
|
(11,314 |
) |
|
|
11,788 |
|
|
Acquisition transaction costs (3) |
|
— |
|
|
|
2,935 |
|
|
|
|
— |
|
|
|
6,003 |
|
|
Amortization of step up in value of acquired inventories (4) |
|
— |
|
|
|
— |
|
|
|
|
12,252 |
|
|
|
1,106 |
|
|
Adjusted operating income
(1) |
$ |
182,099 |
|
|
$ |
146,806 |
|
|
|
$ |
718,787 |
|
|
$ |
631,233 |
|
|
As a percent of total sales |
|
17.2 |
|
% |
|
15.8 |
|
% |
|
|
17.1 |
|
% |
|
16.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as reported |
$ |
156,644 |
|
|
$ |
109,146 |
|
|
|
$ |
545,248 |
|
|
$ |
472,224 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization and asset impairment charges (2) |
|
(21,932 |
) |
|
|
2,383 |
|
|
|
|
(11,314 |
) |
|
|
11,788 |
|
|
Acquisition transaction costs (3) |
|
— |
|
|
|
2,935 |
|
|
|
|
— |
|
|
|
6,003 |
|
|
Pension settlement net charges (5) |
|
845 |
|
|
|
— |
|
|
|
|
845 |
|
|
|
(4,273 |
) |
|
Amortization of step up in value of acquired inventories (4) |
|
— |
|
|
|
— |
|
|
|
|
12,252 |
|
|
|
1,106 |
|
|
Gain on asset disposal (6) |
|
— |
|
|
|
— |
|
|
|
|
(1,646 |
) |
|
|
— |
|
|
Tax effect of Special items (7) |
|
6,445 |
|
|
|
(1,250 |
) |
|
|
|
2,537 |
|
|
|
(1,192 |
) |
|
Adjusted net income (1) |
|
142,002 |
|
|
|
113,214 |
|
|
|
|
547,922 |
|
|
|
485,656 |
|
|
Interest expense, net |
|
8,663 |
|
|
|
8,633 |
|
|
|
|
44,371 |
|
|
|
29,500 |
|
|
Income taxes as reported |
|
40,386 |
|
|
|
26,612 |
|
|
|
|
141,618 |
|
|
|
120,603 |
|
|
Tax effect of Special items (7) |
|
(6,445 |
) |
|
|
1,250 |
|
|
|
|
(2,537 |
) |
|
|
1,192 |
|
|
Adjusted EBIT (1) |
$ |
184,606 |
|
|
$ |
149,709 |
|
|
|
$ |
731,374 |
|
|
$ |
636,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate as
reported |
|
20.5 |
|
% |
|
19.6 |
|
% |
|
|
20.6 |
|
% |
|
20.3 |
|
% |
Net special item tax
impact |
|
(1.2 |
) |
% |
|
0.1 |
|
% |
|
|
(0.4 |
) |
% |
|
(0.2 |
) |
% |
Adjusted effective tax rate
(1) |
|
19.3 |
|
% |
|
19.7 |
|
% |
|
|
20.2 |
|
% |
|
20.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share as
reported |
$ |
2.70 |
|
|
$ |
1.87 |
|
|
|
$ |
9.37 |
|
|
$ |
8.04 |
|
|
Special items per share |
|
(0.25 |
) |
|
|
0.07 |
|
|
|
|
0.04 |
|
|
|
0.23 |
|
|
Adjusted diluted earnings per
share (1) |
$ |
2.45 |
|
|
$ |
1.94 |
|
|
|
$ |
9.41 |
|
|
$ |
8.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
(diluted) |
|
57,911 |
|
|
|
58,459 |
|
|
|
|
58,221 |
|
|
|
58,749 |
|
|
(1) |
Adjusted operating income, adjusted net income, adjusted EBIT,
adjusted effective tax rate and adjusted diluted EPS are non-GAAP
financial measures. Refer to Non-GAAP Information
section. |
(2) |
2023 gain is primarily related to
the sale of a property partially offset by rationalization and
asset impairment charges within International Welding. 2022 charges
are primarily related to employee severance, gains or losses on the
disposal of assets and other related costs and non-cash asset
impairment charges. |
(3) |
Related to acquisitions and are
included in Selling, general & administrative expenses. |
(4) |
Related to acquisitions and are
included in Cost of goods sold. |
(5) |
2023 charges related to pension
settlements included in Other income. 2022 net gains primarily due
to the final settlement associated with the termination of a
pension plan and are included in Other income. |
(6) |
Gain on asset disposal and
included in Other income. |
(7) |
Includes the net tax impact of
Special items recorded during the respective periods. The tax
effect of Special items impacting pre-tax income was calculated as
the pre-tax amount multiplied by the applicable tax rate. The
applicable tax rates reflect the taxable jurisdiction and nature of
each Special item. |
Lincoln Electric
Holdings, Inc.Financial
Highlights(In thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
Non-GAAP Financial
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
Return on Invested
Capital |
2023 |
|
|
2022 |
|
|
Net income as reported |
$ |
545,248 |
|
|
$ |
472,224 |
|
|
Plus: Interest expense (after-tax) |
|
38,050 |
|
|
|
23,276 |
|
|
Less: Interest income (after-tax) |
|
5,033 |
|
|
|
1,202 |
|
|
Net operating profit after taxes |
$ |
578,265 |
|
|
$ |
494,298 |
|
|
Special items: |
|
|
|
|
|
|
Rationalization and asset impairment charges |
|
(11,314 |
) |
|
|
11,788 |
|
|
Acquisition transaction costs |
|
— |
|
|
|
6,003 |
|
|
Pension settlement net charges |
|
845 |
|
|
|
(4,273 |
) |
|
Amortization of step up in value of acquired inventories |
|
12,252 |
|
|
|
1,106 |
|
|
Gain on asset disposal |
|
(1,646 |
) |
|
|
— |
|
|
Tax effect of Special items (2) |
|
2,537 |
|
|
|
(1,192 |
) |
|
Adjusted net operating profit
after taxes (1) |
$ |
580,939 |
|
|
$ |
507,730 |
|
|
|
|
|
|
|
|
|
Invested
Capital |
December 31, 2023 |
|
December 31, 2022 |
|
Short-term debt |
$ |
2,439 |
|
|
$ |
93,483 |
|
|
Long-term debt, less current portion |
|
1,102,771 |
|
|
|
1,110,396 |
|
|
Total debt |
|
1,105,210 |
|
|
|
1,203,879 |
|
|
Total equity |
|
1,308,852 |
|
|
|
1,034,041 |
|
|
Invested capital |
$ |
2,414,062 |
|
|
$ |
2,237,920 |
|
|
|
|
|
|
|
|
|
Return on invested capital as
reported |
|
24.0 |
|
% |
|
22.1 |
|
% |
Adjusted return on invested
capital (1) |
|
24.1 |
|
% |
|
22.7 |
|
% |
(1) |
Adjusted net operating profit after taxes and adjusted ROIC are
non-GAAP financial measures. Refer to Non-GAAP Information
section. |
(2) |
Includes the net tax impact of
Special items recorded during the respective periods.The tax effect
of Special items impacting pre-tax income was calculated as the
pre-tax amount multiplied by the applicable tax rate. The
applicable tax rates reflect the taxable jurisdiction and nature of
each Special item. |
Lincoln Electric
Holdings, Inc.Financial
Highlights(In thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
2023 |
|
|
2022 |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
Net income |
$ |
156,644 |
|
|
$ |
109,146 |
|
Adjustments to reconcile Net income to Net cash provided by
operating activities: |
|
|
|
|
|
Rationalization and asset impairment net charges |
|
3,651 |
|
|
|
324 |
|
Depreciation and amortization |
|
21,969 |
|
|
|
19,050 |
|
Gain on sale of property |
|
(36,187 |
) |
|
|
— |
|
Other non-cash items, net |
|
(33,586 |
) |
|
|
(13,624 |
) |
Changes in operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
Decrease (increase) in accounts receivable |
|
8,285 |
|
|
|
(441 |
) |
Decrease in inventories |
|
64,313 |
|
|
|
54,390 |
|
(Decrease) in trade accounts payable |
|
(7,356 |
) |
|
|
(2,720 |
) |
Net change in other current assets and liabilities |
|
(68,798 |
) |
|
|
(58,966 |
) |
Net change in other long-term assets and liabilities |
|
12,727 |
|
|
|
4,644 |
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES |
|
121,662 |
|
|
|
111,803 |
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
Capital expenditures |
|
(24,528 |
) |
|
|
(19,582 |
) |
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(414,004 |
) |
Proceeds from sale of property, plant and equipment |
|
44,898 |
|
|
|
994 |
|
Other investing activities |
|
6,010 |
|
|
|
159 |
|
NET CASH PROVIDED BY (USED BY)
INVESTING ACTIVITIES |
|
26,380 |
|
|
|
(432,433 |
) |
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
(Payments on) proceeds from short-term borrowings |
|
(5,057 |
) |
|
|
24,955 |
|
(Payments on) proceeds from long-term borrowings |
|
(112 |
) |
|
|
399,843 |
|
Proceeds from exercise of stock options |
|
9,068 |
|
|
|
4,217 |
|
Purchase of shares for treasury |
|
(68,176 |
) |
|
|
(25,077 |
) |
Cash dividends paid to shareholders |
|
(36,733 |
) |
|
|
(32,347 |
) |
Other financing activities |
|
— |
|
|
|
(441 |
) |
NET CASH (USED BY) PROVIDED BY
FINANCING ACTIVITIES |
|
(101,010 |
) |
|
|
371,150 |
|
|
|
|
|
|
|
Effect of exchange rate
changes on Cash and cash equivalents |
|
4,088 |
|
|
|
5,323 |
|
INCREASE IN CASH AND CASH
EQUIVALENTS |
|
51,120 |
|
|
|
55,843 |
|
Cash and cash equivalents at
beginning of period |
|
342,667 |
|
|
|
141,307 |
|
Cash and cash equivalents at
end of period |
$ |
393,787 |
|
|
$ |
197,150 |
|
|
|
|
|
|
|
Cash dividends paid per
share |
$ |
0.64 |
|
|
$ |
0.56 |
|
Lincoln Electric
Holdings, Inc.Financial
Highlights(In thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2023 |
|
|
2022 |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
Net income |
$ |
545,248 |
|
|
$ |
472,224 |
|
Adjustments to reconcile Net income to Net cash provided by
operating activities: |
|
|
|
|
|
Rationalization and asset impairment net charges |
|
4,779 |
|
|
|
8,100 |
|
Depreciation and amortization |
|
86,670 |
|
|
|
78,059 |
|
Gain on sale of property |
|
(36,187 |
) |
|
|
— |
|
Other non-cash items, net |
|
(12,159 |
) |
|
|
(10,958 |
) |
Changes in operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
Decrease (increase) in accounts receivable |
|
14,980 |
|
|
|
(65,010 |
) |
Decrease (increase) in inventories |
|
122,094 |
|
|
|
(81,188 |
) |
(Decrease) increase in trade accounts payable |
|
(32,028 |
) |
|
|
16,852 |
|
Net change in other current assets and liabilities |
|
(25,552 |
) |
|
|
(26,496 |
) |
Net change in other long-term assets and liabilities |
|
(303 |
) |
|
|
(8,197 |
) |
NET CASH PROVIDED BY OPERATING
ACTIVITIES |
|
667,542 |
|
|
|
383,386 |
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
Capital expenditures |
|
(90,987 |
) |
|
|
(71,883 |
) |
Acquisition of businesses, net of cash acquired |
|
(32,685 |
) |
|
|
(436,298 |
) |
Proceeds from sale of property, plant and equipment |
|
49,494 |
|
|
|
3,331 |
|
Other investing activities |
|
(551 |
) |
|
|
159 |
|
NET CASH USED BY INVESTING
ACTIVITIES |
|
(74,729 |
) |
|
|
(504,691 |
) |
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
(Payments on) proceeds from short-term borrowings |
|
(79,873 |
) |
|
|
34,351 |
|
(Payments on) proceeds from long-term borrowings |
|
(8,109 |
) |
|
|
405,444 |
|
Proceeds from exercise of stock options |
|
22,365 |
|
|
|
6,385 |
|
Purchase of shares for treasury |
|
(198,765 |
) |
|
|
(181,293 |
) |
Cash dividends paid to shareholders |
|
(148,010 |
) |
|
|
(130,724 |
) |
Other financing activities |
|
— |
|
|
|
(438 |
) |
NET CASH (USED BY) PROVIDED BY
FINANCING ACTIVITIES |
|
(412,392 |
) |
|
|
133,725 |
|
|
|
|
|
|
|
Effect of exchange rate
changes on Cash and cash equivalents |
|
16,216 |
|
|
|
(8,228 |
) |
INCREASE IN CASH AND CASH
EQUIVALENTS |
|
196,637 |
|
|
|
4,192 |
|
Cash and cash equivalents at
beginning of period |
|
197,150 |
|
|
|
192,958 |
|
Cash and cash equivalents at
end of period |
$ |
393,787 |
|
|
$ |
197,150 |
|
|
|
|
|
|
|
Cash dividends paid per
share |
$ |
2.56 |
|
|
$ |
2.24 |
|
Lincoln Electric Holdings, Inc.Segment
Highlights (1)(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
International |
|
The Harris |
|
Corporate / |
|
|
|
|
|
Welding |
|
Welding |
|
Products Group |
|
Eliminations |
|
Consolidated |
|
Three months ended
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
654,707 |
|
$ |
292,177 |
|
|
$ |
111,630 |
|
$ |
— |
|
|
$ |
1,058,514 |
|
|
Inter-segment sales |
|
35,493 |
|
|
11,557 |
|
|
|
2,578 |
|
|
(49,628 |
) |
|
|
— |
|
|
Total sales |
$ |
690,200 |
|
$ |
303,734 |
|
|
$ |
114,208 |
|
$ |
(49,628 |
) |
|
$ |
1,058,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
156,644 |
|
|
As a percent of total sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
14.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (1) |
$ |
129,409 |
|
$ |
64,035 |
|
|
$ |
15,246 |
|
$ |
(2,997 |
) |
|
$ |
205,693 |
|
|
As a percent of total sales |
|
18.7 |
% |
|
21.1 |
|
% |
|
13.3 |
% |
|
|
|
|
19.4 |
|
% |
Special items charges (gain)
(3) |
|
60 |
|
|
(21,147 |
) |
|
|
— |
|
|
— |
|
|
|
(21,087 |
) |
|
Adjusted EBIT (2) |
$ |
129,469 |
|
$ |
42,888 |
|
|
$ |
15,246 |
|
$ |
(2,997 |
) |
|
$ |
184,606 |
|
|
As a percent of total sales |
|
18.8 |
% |
|
14.1 |
|
% |
|
13.3 |
% |
|
|
|
|
17.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
573,592 |
|
$ |
243,114 |
|
|
$ |
114,228 |
|
$ |
— |
|
|
$ |
930,934 |
|
|
Inter-segment sales |
|
29,479 |
|
|
5,754 |
|
|
|
2,470 |
|
|
(37,703 |
) |
|
|
— |
|
|
Total sales |
$ |
603,071 |
|
$ |
248,868 |
|
|
$ |
116,698 |
|
$ |
(37,703 |
) |
|
$ |
930,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
109,146 |
|
|
As a percent of total sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (1) |
$ |
113,813 |
|
$ |
21,020 |
|
|
$ |
12,056 |
|
$ |
(2,498 |
) |
|
$ |
144,391 |
|
|
As a percent of total sales |
|
18.9 |
% |
|
8.4 |
|
% |
|
10.3 |
% |
|
|
|
|
15.5 |
|
% |
Special items charges (4) |
|
567 |
|
|
1,816 |
|
|
|
— |
|
|
2,935 |
|
|
|
5,318 |
|
|
Adjusted EBIT (2) |
$ |
114,380 |
|
$ |
22,836 |
|
|
$ |
12,056 |
|
$ |
437 |
|
|
$ |
149,709 |
|
|
As a percent of total sales |
|
19.0 |
% |
|
9.2 |
|
% |
|
10.3 |
% |
|
|
|
|
16.1 |
|
% |
(1) |
EBIT is defined as Operating income plus Other income. |
(2) |
The primary profit measure used
by management to assess segment performance is adjusted EBIT.
EBIT for each operating segment is adjusted for special items to
derive adjusted EBIT. |
(3) |
Special items in 2023 primarily
reflect a net gain of $21,992 related to the sale of a property,
partially offset by rationalization and asset impairment charges,
and pension settlement charges of $845 in International
Welding. |
(4) |
Special items in 2022 primarily
reflect Rationalization and asset impairment charges of $1,816 and
$567 in International Welding and Americas Welding, respectively,
and acquisition transaction costs of $2,935 in
Corporate/Eliminations. |
Lincoln Electric Holdings,
Inc.Segment Highlights(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
International |
|
The Harris |
|
Corporate / |
|
|
|
|
|
Welding |
|
Welding |
|
Products Group |
|
Eliminations |
|
Consolidated |
|
Year ended
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
2,655,546 |
|
|
$ |
1,040,006 |
|
|
$ |
496,084 |
|
$ |
— |
|
|
$ |
4,191,636 |
|
Inter-segment sales |
|
127,536 |
|
|
|
31,498 |
|
|
|
10,641 |
|
|
(169,675 |
) |
|
|
— |
|
Total sales |
$ |
2,783,082 |
|
|
$ |
1,071,504 |
|
|
$ |
506,725 |
|
$ |
(169,675 |
) |
|
$ |
4,191,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
545,248 |
|
As a percent of total sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (1) |
$ |
528,411 |
|
|
$ |
146,218 |
|
|
$ |
74,144 |
|
$ |
(17,536 |
) |
|
$ |
731,237 |
|
As a percent of total sales |
|
19.0 |
|
% |
|
13.6 |
|
% |
|
14.6 |
% |
|
|
|
|
17.4 |
% |
Special items charges (gain)
(3) |
|
9,858 |
|
|
|
(9,721 |
) |
|
|
— |
|
|
— |
|
|
|
137 |
|
Adjusted EBIT (2) |
$ |
538,269 |
|
|
$ |
136,497 |
|
|
$ |
74,144 |
|
$ |
(17,536 |
) |
|
$ |
731,374 |
|
As a percent of total sales |
|
19.3 |
|
% |
|
12.7 |
|
% |
|
14.6 |
% |
|
|
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
2,288,934 |
|
|
$ |
954,281 |
|
|
$ |
517,996 |
|
$ |
— |
|
|
$ |
3,761,211 |
|
Inter-segment sales |
|
122,019 |
|
|
|
31,503 |
|
|
|
11,040 |
|
|
(164,562 |
) |
|
|
— |
|
Total sales |
$ |
2,410,953 |
|
|
$ |
985,784 |
|
|
$ |
529,036 |
|
$ |
(164,562 |
) |
|
$ |
3,761,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
472,224 |
|
As a percent of total sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (1) |
$ |
465,879 |
|
|
$ |
108,476 |
|
|
$ |
64,008 |
|
$ |
(16,036 |
) |
|
$ |
622,327 |
|
As a percent of total sales |
|
19.3 |
|
% |
|
11.0 |
|
% |
|
12.1 |
% |
|
|
|
|
16.5 |
% |
Special items (gain) charges
(4) |
|
(3,060 |
) |
|
|
11,681 |
|
|
|
— |
|
|
6,003 |
|
|
|
14,624 |
|
Adjusted EBIT (2) |
$ |
462,819 |
|
|
$ |
120,157 |
|
|
$ |
64,008 |
|
$ |
(10,033 |
) |
|
$ |
636,951 |
|
As a percent of total sales |
|
19.2 |
|
% |
|
12.2 |
|
% |
|
12.1 |
% |
|
|
|
|
16.9 |
% |
(1) |
EBIT is defined as Operating income plus Other income
(expense). |
(2) |
The primary profit measure used
by management to assess segment performance is adjusted EBIT.
EBIT for each operating segment is adjusted for special items to
derive adjusted EBIT. |
(3) |
Special items in 2023 primarily
reflect amortization of step up in value of acquired inventories of
$9,390 and $2,862 in Americas and International Welding,
respectively, Rationalization and asset impairment net charges of
$468 and net gains of $11,782 in Americas and International
Welding, respectively, pension settlement charges of $845 in
International Welding and gain on asset disposal of $1,646 in
International Welding. |
(4) |
Special items in 2022 primarily
reflect amortization of step up in value of acquired inventories of
$1,106 in Americas Welding, acquisition transaction costs of $6,003
in Corporate/Eliminations and a $3,735 net gain related to the
final settlement associated with the termination of a pension plan
in Americas Welding. Special items in 2022 also include
Rationalization and asset impairment charges of $11,681 in
International Welding and net gains of $431 in Americas
Welding. |
Lincoln Electric Holdings, Inc.Change
in Net Sales by Segment(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31st Change in Net Sales
by
Segment |
|
|
|
|
Change in Net Sales due to: |
|
|
|
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
Foreign |
|
Net Sales |
|
|
2022 |
|
Volume |
|
Acquisitions |
|
Price |
|
Exchange |
|
2023 |
|
|
Operating
Segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Welding |
$ |
573,592 |
|
$ |
14,754 |
|
|
$ |
61,138 |
|
$ |
2,964 |
|
|
$ |
2,259 |
|
$ |
654,707 |
|
|
International Welding |
|
243,114 |
|
|
11,874 |
|
|
|
30,149 |
|
|
(1,654 |
) |
|
|
8,694 |
|
|
292,177 |
|
|
The Harris Products Group |
|
114,228 |
|
|
(7,904 |
) |
|
|
— |
|
|
4,126 |
|
|
|
1,180 |
|
|
111,630 |
|
|
Consolidated |
$ |
930,934 |
|
$ |
18,724 |
|
|
$ |
91,287 |
|
$ |
5,436 |
|
|
$ |
12,133 |
|
$ |
1,058,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Welding |
|
|
|
|
2.6 |
|
% |
|
10.7 |
% |
|
0.5 |
|
% |
|
0.4 |
% |
|
14.1 |
|
% |
International Welding |
|
|
|
|
4.9 |
|
% |
|
12.4 |
% |
|
(0.7 |
) |
% |
|
3.6 |
% |
|
20.2 |
|
% |
The Harris Products Group |
|
|
|
|
(6.9 |
) |
% |
|
— |
|
|
3.6 |
|
% |
|
1.0 |
% |
|
(2.3 |
) |
% |
Consolidated |
|
|
|
|
2.0 |
|
% |
|
9.8 |
% |
|
0.6 |
|
% |
|
1.3 |
% |
|
13.7 |
|
% |
Twelve
Months Ended December 31st Change in Net Sales by
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Sales due to: |
|
|
|
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
Foreign |
|
Net Sales |
|
|
2022 |
|
Volume |
|
Acquisitions |
|
Price |
|
Exchange |
|
2023 |
|
|
Operating
Segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Welding |
$ |
2,288,934 |
|
$ |
109,860 |
|
|
$ |
222,493 |
|
$ |
37,125 |
|
$ |
(2,866 |
) |
|
$ |
2,655,546 |
|
|
International Welding |
|
954,281 |
|
|
12,519 |
|
|
|
54,078 |
|
|
14,691 |
|
|
4,437 |
|
|
|
1,040,006 |
|
|
The Harris Products Group |
|
517,996 |
|
|
(36,693 |
) |
|
|
— |
|
|
12,330 |
|
|
2,451 |
|
|
|
496,084 |
|
|
Consolidated |
$ |
3,761,211 |
|
$ |
85,686 |
|
|
$ |
276,571 |
|
$ |
64,146 |
|
$ |
4,022 |
|
|
$ |
4,191,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Welding |
|
|
|
|
4.8 |
|
% |
|
9.7 |
% |
|
1.6 |
% |
|
(0.1 |
) |
% |
|
16.0 |
|
% |
International Welding |
|
|
|
|
1.3 |
|
% |
|
5.7 |
% |
|
1.5 |
% |
|
0.5 |
|
% |
|
9.0 |
|
% |
The Harris Products Group |
|
|
|
|
(7.1 |
) |
% |
|
— |
|
|
2.4 |
% |
|
0.5 |
|
% |
|
(4.2 |
) |
% |
Consolidated |
|
|
|
|
2.3 |
|
% |
|
7.4 |
% |
|
1.7 |
% |
|
0.1 |
|
% |
|
11.4 |
|
% |
Contact
Amanda Butler
Vice President, Investor Relations & Communications
Tel: 216.383.2534
Email: Amanda_Butler@lincolnelectric.com
Lincoln Electric (NASDAQ:LECO)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Lincoln Electric (NASDAQ:LECO)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024