LINCOLN ELECTRIC HOLDINGS, INC. CLEVELAND, Feb. 17, 2015 /PRNewswire/ --
Fourth Quarter and Full Year 2014 Key Metric
Highlights
Q4 reported operating income margin at 15.3% of
sales; 15.4% on an adjusted basis
FY2014
operating income margin at 13.3% of sales; a
record 15.1% on an adjusted basis
Record FY2014
cash flows from operations -up 18.5% to $402
million
Solid execution with 19.1% ROIC and a
record 16.5% average operating working capital
ratio
Returned a record $380 million to
shareholders in FY2014 through share repurchases
and dividend payments
-------------------------------------------------
Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported fourth quarter 2014 net income of $75.2 million, or $0.96 per diluted share. This compares with net income of $88.3 million, or $1.07 per diluted share, in the comparable 2013 period. Adjusted net income in the fourth quarter 2014 was $75.4 million, or $0.96 per diluted share, compared with adjusted net income of $89.2 million, or $1.09 per diluted share, in the comparable 2013 period. The 2013 period includes a benefit of $0.22 per diluted share from our Venezuelan operations, which operates in a hyper-inflationary environment. This compares with no contribution to Adjusted net income from our Venezuelan operations in the fourth quarter 2014.
Sales decreased 4.3% to $684.0 million in the fourth quarter 2014 versus $714.8 million in the comparable 2013 period primarily due to unfavorable foreign currency translation and volume weakness in our South America Welding segment. Operating income for the fourth quarter decreased 11.8% to $104.9 million, or 15.3% of sales, from $118.9 million, or 16.6% of sales, in the comparable 2013 period. Adjusted operating income decreased 12.3% to $105.1 million or 15.4% of sales, compared with $119.9 million, or 16.8% of sales in 2013. Lower 2014 operating income results primarily reflect a challenging year-over-year comparison in our South America Welding segment due to contraction in our Venezuelan operations.
Christopher L. Mapes, Chairman, President and Chief Executive Officer stated, "We ended the year with a strong finish highlighted by compelling results in North America and record performance across key metrics. Steady execution of our '2020 initiatives' helped offset a challenging year-over-year comparison from our Venezuelan business and rising foreign exchange headwinds. I am pleased to report that excluding Venezuela, the business achieved a 130 basis point expansion in operating income margin on an adjusted basis and ten percent growth in EPS in 2014. Looking ahead to 2015, we expect to benefit from our diversified end market and geographic exposure, as well as the strength of our portfolio. While we are cautious about near-term factors such as foreign exchange and oil prices, we expect our strategic initiatives will continue to generate value for all of our stakeholders through the cycle."
Dividend and Share Repurchases
The Company's Board of Directors increased the quarterly cash dividend 26%, from $0.23 per share to $0.29, which was paid on January 15, 2015 to shareholders of record as of December 31, 2014. During the quarter, the Company returned $57.8 million to shareholders through the repurchase of the Company's common shares. The Company's 2015 share repurchase target is $400 million.
Twelve Months 2014 Summary
Net income for the twelve months ended December 31, 2014 was $254.7 million, or $3.18 per diluted share, which includes rationalization and asset impairment charges of $30.9 million and charges of $21.1 million from Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism in the first quarter. This compares with net income of $293.8 million, or $3.54 per diluted share, in 2013. Adjusted net income was $305.9 million, or $3.82 per diluted share, compared with adjusted net income of $313.2 million, or $3.77 per diluted share, in 2013. Adjusted net income for the twelve months ended December 31, 2014 includes earnings of $0.17 per diluted share from the Company's Venezuelan operations as compared with $0.46 per diluted share in the comparable 2013 period.
Sales remained relatively steady at $2.8 billion in the twelve months ended December 31, 2014 as compared with $2.9 billion in the comparable 2013 period. This result reflects lower volumes and unfavorable foreign exchange translation being offset by pricing actions and acquisitions. Operating income for the twelve months ended December 31, 2014 decreased to $373.7 million, or 13.3% of sales, compared with $407.0 million, or 14.3% of sales, in the comparable 2013 period. Adjusted operating income was $424.9 million or 15.1% of sales, compared with $428.4 million, or 15.0% of sales in 2013. Operating income and Adjusted operating income include a $3.9 million gain, $2.5 million after-tax or $0.03 per diluted share, from an insurance settlement.
Webcast Information
A conference call to discuss fourth quarter and full year 2014 financial results will be webcast live today, February 17, 2015, at 10:00 a.m., Eastern Time. This webcast is accessible at http://ir.lincolnelectric.com. Listeners should go to the web site prior to the call to register and download and install any necessary audio software. A replay of the webcast will be available on the Company's web site.
Investors who are unable to access the webcast may listen to the conference call live by telephone by dialing (877) 344-3899 (domestic) or (315) 625-3087 (international) and use confirmation code 61512318. Telephone participants are asked to dial in 10-15 minutes prior to the start of the conference call.
Financial results for the fourth quarter and full year 2014 can also be obtained at http://ir.lincolnelectric.com.
About Lincoln Electric
Lincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment and has a leading global position in the brazing and soldering alloys market. Headquartered in Cleveland, Ohio, Lincoln has 47 manufacturing locations, including operations and joint ventures in 19 countries and a worldwide network of distributors and sales offices covering more than 160 countries. For more information about Lincoln Electric and its products and services, visit the Company's website at http://www.lincolnelectric.com.
Non-GAAP Information
Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-GAAP financial measures that management believes are important to investors to evaluate and compare the Company's financial performance from period to period. Management uses this information in assessing and evaluating the Company's underlying operating performance. Non-GAAP financial measures should be read in conjunction with the GAAP financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures. Please refer to the attached schedule for a reconciliation of non-GAAP financial measures to the related GAAP financial measures.
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 and market conditions; the effectiveness of 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, including in highly inflationary countries such as Venezuela; adverse outcome of pending or potential litigation; actual costs of the Company's rationalization plans; possible acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; and the possible effects of events beyond our control, such as political unrest, acts of terror and natural disasters, 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.
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Income
Three months ended December 31, Fav (Unfav) to Prior Year
------------------------------- -------------------------
2014 % of Sales 2013 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $683,954 100.0% $714,791 100.0% $(30,837) (4.3%)
Cost of goods sold 452,869 66.2% 471,744 66.0% 18,875 4.0%
------- ------- ------
Gross profit 231,085 33.8% 243,047 34.0% (11,962) (4.9%)
Selling, general & administrative expenses 126,002 18.4% 123,883 17.3% (2,119) (1.7%)
Rationalization and asset impairment charges 166 - 259 - 93 35.9%
--- --- ---
Operating income 104,917 15.3% 118,905 16.6% (13,988) (11.8%)
Interest income 628 0.1% 868 0.1% (240) (27.6%)
Equity earnings in affiliates 1,104 0.2% 1,119 0.2% (15) (1.3%)
Other income 791 0.1% 1,053 0.1% (262) (24.9%)
Interest expense (6,704) (1.0%) (557) (0.1%) (6,147) -
------ ---- ------
Income before income taxes 100,736 14.7% 121,388 17.0% (20,652) (17.0%)
Income taxes 25,401 3.7% 33,323 4.7% 7,922 23.8%
------ ------ -----
Effective tax rate 25.2% 27.5% 2.3%
Net income including non-controlling interests 75,335 11.0% 88,065 12.3% (12,730) (14.5%)
Non-controlling interests in subsidiaries' 123 - (259) - 382 147.5%
earnings (loss)
Net income $75,212 11.0% $88,324 12.4% $(13,112) (14.8%)
======= ======= ========
Basic earnings per share $0.97 $1.09 $(0.12) (11.0%)
Diluted earnings per share $0.96 $1.07 $(0.11) (10.3%)
Weighted average shares (basic) 77,403 81,132
Weighted average shares (diluted) 78,280 82,184
Twelve months ended December 31, Fav (Unfav) to Prior Year
-------------------------------- -------------------------
2014 % of Sales 2013 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $2,813,324 100.0% $2,852,671 100.0% $(39,347) (1.4%)
Cost of goods sold 1,864,027 66.3% 1,910,017 67.0% 45,990 2.4%
--------- --------- ------
Gross profit 949,297 33.7% 942,654 33.0% 6,643 0.7%
Selling, general & administrative expenses 545,497 19.4% 527,206 18.5% (18,291) (3.5%)
Rationalization and asset impairment charges 30,053 1.1% 8,463 0.3% (21,590) (255.1%)
------ ----- -------
Operating income 373,747 13.3% 406,985 14.3% (33,238) (8.2%)
Interest income 3,093 0.1% 3,320 0.1% (227) (6.8%)
Equity earnings in affiliates 5,412 0.2% 4,806 0.2% 606 12.6%
Other income 3,995 0.1% 4,194 0.1% (199) (4.7%)
Interest expense (10,434) (0.4%) (2,864) (0.1%) (7,570) (264.3%)
------- ------ ------
Income before income taxes 375,813 13.4% 416,441 14.6% (40,628) (9.8%)
Income taxes 121,933 4.3% 124,754 4.4% 2,821 2.3%
------- ------- -----
Effective tax rate 32.4% 30.0% (2.4%)
Net income including non-controlling interests 253,880 9.0% 291,687 10.2% (37,807) (13.0%)
Non-controlling interests in subsidiaries' (806) - (2,093) (0.1%) 1,287 61.5%
earnings (loss)
Net income $254,686 9.1% $293,780 10.3% $(39,094) (13.3%)
======== ======== ========
Basic earnings per share $3.22 $3.58 $(0.36) (10.1%)
Diluted earnings per share $3.18 $3.54 $(0.36) (10.2%)
Weighted average shares (basic) 79,185 81,978
Weighted average shares (diluted) 80,096 83,042
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,
------------------------------- --------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Operating income as reported $104,917 $118,905 $373,747 $406,985
Special items (pre-tax):
Rationalization and asset impairment charges (1) 166 259 30,053 8,463
Loss on the sale of land (2) - 705 - 705
Venezuela foreign exchange losses (3) - - 21,133 12,198
---
Adjusted operating income (5) $105,083 $119,869 $424,933 $428,351
======== ======== ======== ========
Net income as reported $75,212 $88,324 $254,686 $293,780
Special items (after-tax):
Rationalization and asset impairment charges (1) 167 223 30,914 7,573
Loss on the sale of land (2) - 705 - 705
Venezuela foreign exchange losses (3) - - 21,133 12,198
Special items attributable to non-controlling - (47) (805) (1,068)
interests (4)
Adjusted net income (5) $75,379 $89,205 $305,928 $313,188
======= ======= ======== ========
Diluted earnings per share as reported $0.96 $1.07 $3.18 $3.54
Special items - 0.02 0.64 0.23
Adjusted diluted earnings per share (5) $0.96 $1.09 $3.82 $3.77
===== ===== ===== =====
Weighted average shares (diluted) 78,280 82,184 80,096 83,042
(1) The three and twelve months ended
December 31, 2014 include non-cash
asset impairment charges. The
twelve months ended December 31,
2014 also includes net
rationalization credits including
gains on the sale of assets. The
three and twelve months ended
December 31, 2013 include net
charges associated with long-lived
asset impairments and severance and
other related costs from the
consolidation of manufacturing
operations partially offset by gains
related to the sale of assets,
including real estate, at
rationalized operations.
(2) Represents the loss realized related
to the sale of land.
(3) The twelve months ended December 31,
2014 represents the impact of the
Venezuelan remeasurement loss
related to the adoption of a new
foreign exchange mechanism in the
first quarter. The twelve months
ended December 31, 2013 represents
the impact of the devaluation of the
Venezuelan currency.
(4) Represents the portion of special
items attributable to non-
controlling interests.
(5) Adjusted operating income, Adjusted
net income and Adjusted diluted
earnings per share are non-GAAP
financial measures that management
believes are important to investors
to evaluate and compare the
Company's financial performance from
period to period. Management uses
this information in assessing and
evaluating the Company's underlying
operating performance. Non-GAAP
financial measures should be read in
conjunction with the GAAP financial
measures, as non-GAAP measures are
a supplement to, and not a
replacement for, GAAP financial
measures.
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)
Balance Sheet Highlights
Selected Consolidated Balance Sheet Data December 31, 2014 December 31, 2013
----------------- -----------------
Cash and cash equivalents $278,379 $299,825
Total current assets 1,098,677 1,130,775
Property, plant and equipment, net 437,209 484,005
Total assets 1,939,215 2,151,867
Total current liabilities 492,419 456,917
Short-term debt (1) 68,166 15,296
Long-term debt 2,488 3,791
Total equity 1,285,781 1,530,688
Net Operating Working Capital December 31, 2014 December 31, 2013
----------------- -----------------
Accounts receivable $321,862 $367,134
Inventory 330,840 349,963
Trade accounts payable 202,482 212,799
------- -------
Net operating working capital $450,220 $504,298
======== ========
Net operating working capital to net sales (2) 16.5% 17.6%
Invested Capital December 31, 2014 December 31, 2013
----------------- -----------------
Short-term debt (1) $68,166 $15,296
Long-term debt 2,488 3,791
----- -----
Total debt 70,654 19,087
Total equity 1,285,781 1,530,688
--------- ---------
Invested capital $1,356,435 $1,549,775
========== ==========
Total debt / invested capital 5.2% 1.2%
Return on invested capital (3) 19.1% 18.9%
(1) Includes current portion of
long-term debt.
(2) Net operating working
capital to net sales is
defined as net operating
working capital divided by
annualized rolling three
months of sales.
(3) Return on invested capital
is defined as rolling 12
months of earnings
excluding tax-effected
interest divided by
invested capital.
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
Three months ended December 31,
-------------------------------
2014 2013
---- ----
OPERATING ACTIVITIES:
Net income $75,212 $88,324
Non-controlling interests in subsidiaries' earnings (loss) 123 (259)
--- ----
Net income including non-controlling interests 75,335 88,065
Adjustments to reconcile Net income including non-controlling interests to Net cash
provided by operating activities:
Rationalization and asset impairment charges 127 43
Depreciation and amortization 16,590 17,002
Equity loss (earnings) in affiliates, net 53 (347)
Pension expense 2,761 7,513
Pension contributions and payments (1,429) (2,939)
Other non-cash items, net 14,357 (296)
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in accounts receivable 28,264 12,545
Decrease in inventories 5,435 23,199
Increase in trade accounts payable 13,669 33,497
Net change in other current assets and liabilities (24,954) (80,601)
Net change in other long-term assets and liabilities 3,441 (878)
----- ----
NET CASH PROVIDED BY OPERATING ACTIVITIES 133,649 96,803
INVESTING ACTIVITIES:
Capital expenditures (17,560) (16,324)
Acquisition of businesses, net of cash acquired (23,338) (48,225)
Proceeds from sale of property, plant and equipment 411 597
Other investing activities - 2,500
--- -----
NET CASH USED BY INVESTING ACTIVITIES (40,487) (61,452)
FINANCING ACTIVITIES:
Net change in borrowings (17,783) 511
Proceeds from exercise of stock options 3,171 4,220
Excess tax benefits from stock-based compensation 2,606 3,629
Purchase of shares for treasury (57,775) (54,238)
Cash dividends paid to shareholders (17,866) (16,290)
Transactions with non-controlling interests - (3,278)
--- ------
NET CASH USED BY FINANCING ACTIVITIES (87,647) (65,446)
Effect of exchange rate changes on Cash and cash equivalents (6,659) (389)
------ ----
DECREASE IN CASH AND CASH EQUIVALENTS (1,144) (30,484)
Cash and cash equivalents at beginning of period 279,523 330,309
-------
Cash and cash equivalents at end of period $278,379 $299,825
======== ========
Cash dividends paid per share $0.23 $0.20
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
Twelve months ended December 31,
--------------------------------
2014 2013
---- ----
OPERATING ACTIVITIES:
Net income $254,686 $293,780
Non-controlling interests in subsidiaries' loss (806) (2,093)
---- ------
Net income including non-controlling interests 253,880 291,687
Adjustments to reconcile Net income including non-controlling interests to Net cash
provided by operating activities:
Rationalization and asset impairment charges 29,574 5,092
Depreciation and amortization 69,607 68,883
Equity earnings in affiliates, net (1,848) (1,660)
Pension expense 12,395 29,774
Pension contributions and payments (36,072) (87,356)
Other non-cash items, net 44,398 29,461
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease (increase) in accounts receivable 5,876 (5,437)
(Increase) decrease in inventories (5,718) 13,310
Increase in trade accounts payable 2,135 794
Net change in other current assets and liabilities 28,345 (4,974)
Net change in other long-term assets and liabilities (870) (680)
---- ----
NET CASH PROVIDED BY OPERATING ACTIVITIES 401,702 338,894
INVESTING ACTIVITIES:
Capital expenditures (72,990) (76,015)
Acquisition of businesses, net of cash acquired (24,230) (53,161)
Proceeds from sale of property, plant and equipment 17,457 1,393
Other investing activities 778 (1,717)
NET CASH USED BY INVESTING ACTIVITIES (78,985) (129,500)
FINANCING ACTIVITIES:
Net change in borrowings 53,331 (1,840)
Proceeds from exercise of stock options 9,116 20,297
Excess tax benefits from stock-based compensation 5,967 10,602
Purchase of shares for treasury (307,178) (167,879)
Cash dividends paid to shareholders (73,261) (49,277)
Transactions with non-controlling interests (2,330) (6,087)
NET CASH USED BY FINANCING ACTIVITIES (314,355) (194,184)
Effect of exchange rate changes on Cash and cash equivalents (29,808) (1,849)
------- ------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (21,446) 13,361
Cash and cash equivalents at beginning of period 299,825 286,464
Cash and cash equivalents at end of period $278,379 $299,825
======== ========
Cash dividends paid per share $0.92 $0.60
Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
North Europe Asia Pacific South The Harris Corporate / Consolidated
America Welding Welding America Products Eliminations
Welding Welding Group
------- ------- -----
Three months ended December 31, 2014
Net sales $429,907 $97,288 $58,113 $32,689 $65,957 $ - $683,954
Inter-segment sales 28,064 3,699 3,176 71 1,821 (36,831) -
Total $457,971 $100,987 $61,289 $32,760 $67,778 $(36,831) $683,954
======== ======== ======= ======= ======= ======== ========
EBIT (1) $88,456 $9,429 $1,715 $(217) $6,380 $1,049 $106,812
As a percent of total sales 19.3% 9.3% 2.8% (0.7%) 9.4% 15.6%
Special items (gain) charge (2) $ - $(19) $185 $ - $ - $ - $166
EBIT, as adjusted (4) $88,456 $9,410 $1,900 $(217) $6,380 $1,049 $106,978
As a percent of total sales 19.3% 9.3% 3.1% (0.7%) 9.4% 15.6%
Three months ended December 31, 2013
Net sales $410,033 $111,874 $63,170 $63,303 $66,411 $ - $714,791
Inter-segment sales 27,385 6,046 2,327 11 2,396 (38,165) -
Total $437,418 $117,920 $65,497 $63,314 $68,807 $(38,165) $714,791
======== ======== ======= ======= ======= ======== ========
EBIT (1) $83,902 $7,752 $(792) $25,187 $6,415 $(1,387) $121,077
As a percent of total sales 19.2% 6.6% (1.2%) 39.8% 9.3% 16.9%
Special items (gain) charge (3) $(57) $381 $640 $ - $ - $ - $964
EBIT, as adjusted (4) $83,845 $8,133 $(152) $25,187 $6,415 $(1,387) $122,041
As a percent of total sales 19.2% 6.9% (0.2%) 39.8% 9.3% 17.1%
Twelve months ended December 31, 2014
Net sales $1,700,924 $425,775 $243,800 $148,595 $294,230 $ - $2,813,324
Inter-segment sales 124,732 19,586 14,820 144 8,210 (167,492) -
Total $1,825,656 $445,361 $258,620 $148,739 $302,440 $(167,492) $2,813,324
========== ======== ======== ======== ======== ========= ==========
EBIT (1) $335,533 $47,918 $(27,314) $(5,762) $28,563 $4,216 $383,154
As a percent of total sales 18.4% 10.8% (10.6%) (3.9%) 9.4% 13.6%
Special items (gain) charge (2) $(68) $904 $28,635 $21,715 $ - $ - $51,186
EBIT, as adjusted (4) $335,465 $48,822 $1,321 $15,953 $28,563 $4,216 $434,340
As a percent of total sales 18.4% 11.0% 0.5% 10.7% 9.4% 15.4%
Twelve months ended December 31, 2013
Net sales $1,652,769 $429,548 $266,282 $195,895 $308,177 $ - $2,852,671
Inter-segment sales 127,254 19,911 14,906 233 9,605 (171,909) -
Total $1,780,023 $449,459 $281,188 $196,128 $317,782 $(171,909) $2,852,671
========== ======== ======== ======== ======== ========= ==========
EBIT (1) $317,455 $34,202 $(4,256) $45,108 $27,826 $(4,350) $415,985
As a percent of total sales 17.8% 7.6% (1.5%) 23.0% 8.8% 14.6%
Special items (gain) charge (3) $1,052 $2,045 $6,071 $12,198 $ - $ - $21,366
EBIT, as adjusted (4) $318,507 $36,247 $1,815 $57,306 $27,826 $(4,350) $437,351
As a percent of total sales 17.9% 8.1% 0.6% 29.2% 8.8% 15.3%
(1) EBIT is defined as Operating income
plus Equity earnings in affiliates
and Other income.
(2) Special items in the three and twelve
months ended December 31, 2014
include non-cash asset impairment
charges. The twelve months ended
December 31, 2014 also includes net
rationalization credits including
gains on the sale of assets.
Special items in the twelve months
ended December 31, 2014 also include
the impact of the Venezuelan
remeasurement losses related to the
adoption of a new foreign exchange
mechanism in the first quarter.
(3) Special items in the three and twelve
months ended December 31, 2013
include net rationalization and
asset impairment charges and the
impact of the devaluation of the
Venezuelan currency.
(4) The primary profit measure used by
management to assess segment
performance is EBIT, as adjusted.
EBIT for each operating segment is
adjusted for special items to derive
EBIT, as adjusted.
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 Volume Acquisitions Price Foreign Net Sales
2013 Exchange 2014
---- -------- ----
Operating Segments
North America Welding $410,033 $5,331 $15,936 $2,902 $(4,295) $429,907
Europe Welding 111,874 (2,156) - (912) (11,518) 97,288
Asia Pacific Welding 63,170 (4,866) - 374 (565) 58,113
South America Welding 63,303 (27,900) - 13,896 (16,610) 32,689
The Harris Products Group 66,411 4,874 - (3,927) (1,401) 65,957
------ ----- --- ------ ------
Consolidated $714,791 $(24,717) $15,936 $12,333 $(34,389) $683,954
======== ======== ======= ======= ======== ========
% Change
North America Welding 1.3% 3.9% 0.7% (1.0%) 4.8%
Europe Welding (1.9%) - (0.8%) (10.3%) (13.0%)
Asia Pacific Welding (7.7%) - 0.6% (0.9%) (8.0%)
South America Welding (44.1%) - 22.0% (26.2%) (48.4%)
The Harris Products Group 7.3% - (5.9%) (2.1%) (0.7%)
Consolidated (3.5%) 2.2% 1.7% (4.8%) (4.3%)
Twelve Months Ended December 31st Change in Net Sales by Segment
Change in Net Sales due to:
---------------------------
Net Sales Volume Acquisitions Price Foreign Net Sales
2013 Exchange 2014
---- -------- ----
Operating Segments
North America Welding $1,652,769 $4,335 $42,184 $13,247 $(11,611) $1,700,924
Europe Welding 429,548 8,107 - (3,722) (8,158) 425,775
Asia Pacific Welding 266,282 (17,516) - 1,351 (6,317) 243,800
South America Welding 195,895 (59,554) - 57,461 (45,207) 148,595
The Harris Products Group 308,177 6,722 - (18,411) (2,258) 294,230
------- ----- --- ------- ------
Consolidated $2,852,671 $(57,906) $42,184 $49,926 $(73,551) $2,813,324
========== ======== ======= ======= ======== ==========
% Change
North America Welding 0.3% 2.6% 0.8% (0.7%) 2.9%
Europe Welding 1.9% - (0.9%) (1.9%) (0.9%)
Asia Pacific Welding (6.6%) - 0.5% (2.4%) (8.4%)
South America Welding (30.4%) - 29.3% (23.1%) (24.1%)
The Harris Products Group 2.2% - (6.0%) (0.7%) (4.5%)
Consolidated (2.0%) 1.5% 1.8% (2.6%) (1.4%)
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lincoln-electric-reports-fourth-quarter-and-full-year-2014-results-300036714.html
SOURCE Lincoln Electric Holdings, Inc.
