LINCOLN ELECTRIC HOLDINGS, INC. CLEVELAND, Oct. 30, 2014 /PRNewswire/ --
Third Quarter 2014 Highlights
Reported sales increased 3.5% to $716 million; up
5.8% excluding unfavorable foreign exchange
translation
Operating income of $76 million, or
10.6% of sales, includes rationalization and asset
impairment charges of $29 million
Adjusted
operating income increased 3.7% to $105 million,
or 14.7% of sales
Cash flows from operations up
10.7% to $268 million on a year-to-date basis
Returned $148 million to shareholders and
significantly increased share repurchase program
---------------------------------------------------
Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported third quarter 2014 net income of $45.7 million, or $0.57 per diluted share, which includes rationalization and asset impairment charges of $29.1 million. This compares with net income of $66.0 million, or $0.80 per diluted share, in the comparable 2013 period. Adjusted net income was $74.9 million, or $0.94 per diluted share, compared to adjusted net income of $71.1 million, or $0.86 per diluted share, in the comparable 2013 period.
Sales increased 3.5% to $715.8 million in the third quarter 2014 versus $691.9 million in the comparable 2013 period. Operating income for the third quarter decreased 20.0% to $76.1 million, or 10.6% of sales, from $95.2 million, or 13.8% of sales, in the comparable 2013 period. Adjusted operating income increased 3.7% to $105.2 million or 14.7% of sales, compared with $101.5 million, or 14.7% of sales in 2013.
Adjusted operating income excludes the effect of rationalization and asset impairment charges of $29.1 million. These non-cash asset impairment charges primarily related to a planned divestiture of manufacturing capacity in the Asia Pacific Welding segment of $32.4 million partially offset by net gains of $3.4 million primarily representing a gain on the sale of real estate. These actions are part of continuing strategic repositioning initiatives in the region to improve mix, profitability, and returns.
Christopher L. Mapes, Chairman, President and Chief Executive Officer stated, "We are pleased with the underlying quality of our earnings this quarter, which were driven by strong top-line growth and margin contributions from our North America Welding and Europe Welding segments. This performance more than offset a challenging year-over-year comparison from our Venezuela business. Looking ahead, improving end market trends and demand for our innovative solutions combined with benefits from our strategic initiatives and accelerated returns, position us well to continue to deliver value to all of our stakeholders."
Dividend and Share Repurchases
The Company's Board of Directors declared a 26% increase in the quarterly cash dividend, from $0.23 per share to $0.29, or to $1.16 per share on an annualized basis. The declared quarterly cash dividend of $0.29 per share is payable January 15, 2015 to shareholders of record as of December 31, 2014.
During the quarter, the Company returned $130.1 million to shareholders through the repurchase of 1,867,204 of the Company's common shares. The Company has now increased its 2014 share repurchase target to $300 million of the Company's common shares.
Nine Months 2014 Summary
Net income for the nine months ended September 30, 2014 was $179.5 million, or $2.22 per diluted share, which includes rationalization and asset impairment charges of $29.9 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 $205.5 million, or $2.47 per diluted share, in 2013. Adjusted net income was $230.5 million, or $2.86 per diluted share, compared to adjusted net income of $224.0 million, or $2.69 per diluted share, in 2013. Adjusted net income for the nine months ended September 30, 2014 includes earnings of $0.17 per diluted share from the Company's Venezuelan operations as compared to $0.24 per diluted share in the comparable 2013 period.
Sales remained relatively steady at $2.1 billion in the nine months ended September 30, 2014 and 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 nine months ended September 30, 2014 decreased to $268.8 million, or 12.6% of sales, compared to $288.1 million, or 13.5% of sales, in the comparable 2013 period. Adjusted operating income increased 3.7% to $319.9 million or 15.0% of sales, compared with $308.5 million, or 14.4% 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.
Adjusted operating income excludes the effect of rationalization and asset impairment charges of $29.9 million. Charges consist of non-cash asset impairment charges related to a planned divestiture of manufacturing capacity in the Asia Pacific Welding segment of $32.4 million partially offset by net gains of $2.5 million primarily representing a gain on the sale of real estate. These actions are part of continuing strategic repositioning initiatives in the region to improve mix, profitability, and returns.
Webcast Information
A conference call to discuss third quarter 2014 financial results will be webcast live today, Thursday, October 30, 2014, 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 17603361. Telephone participants are asked to dial in 10-15 minutes prior to the start of the conference call.
Financial results for the third quarter 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 48 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 September 30, Fav (Unfav) to Prior Year
-------------------------------- -------------------------
2014 % of Sales 2013 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $715,777 100.0% $691,875 100.0% $23,902 3.5%
Cost of goods sold 474,168 66.2% 459,178 66.4% (14,990) (3.3)%
------- ------- -------
Gross profit 241,609 33.8% 232,697 33.6% 8,912 3.8%
Selling, general & administrative expenses 136,424 19.1% 131,217 19.0% (5,207) (4.0)%
Rationalization and asset impairment charges 29,068 4.1% 6,302 0.9% (22,766) (361.3)%
------ ----- -------
Operating income 76,117 10.6% 95,178 13.8% (19,061) (20.0)%
Interest income 627 0.1% 536 0.1% 91 17.0%
Equity earnings in affiliates 1,172 0.2% 1,170 0.2% 2 0.2%
Other income 1,043 0.1% 1,514 0.2% (471) (31.1)%
Interest expense (1,174) (0.2)% (558) (0.1)% (616) (110.4)%
------ ---- ----
Income before income taxes 77,785 10.9% 97,840 14.1% (20,055) (20.5)%
Income taxes 32,953 4.6% 33,588 4.9% 635 1.9%
------ ------ ---
Effective tax rate 42.4% 34.3% (8.1)%
Net income including non-controlling interests 44,832 6.3% 64,252 9.3% (19,420) (30.2)%
Non-controlling interests in subsidiaries' loss (857) (0.1)% (1,792) (0.3)% 935 52.2%
Net income $45,689 6.4% $66,044 9.5% $(20,355) (30.8)%
======= ======= ========
Basic earnings per share $0.58 $0.81 $(0.23) (28.4)%
Diluted earnings per share $0.57 $0.80 $(0.23) (28.8)%
Weighted average shares (basic) 78,817 81,644
Weighted average shares (diluted) 79,725 82,707
Nine months ended September 30, Fav (Unfav) to Prior Year
------------------------------- -------------------------
2014 % of Sales 2013 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $2,129,370 100.0% $2,137,880 100.0% $(8,510) (0.4)%
Cost of goods sold 1,411,158 66.3% 1,438,273 67.3% 27,115 1.9%
--------- --------- ------
Gross profit 718,212 33.7% 699,607 32.7% 18,605 2.7%
Selling, general & administrative expenses 419,495 19.7% 403,323 18.9% (16,172) (4.0)%
Rationalization and asset impairment charges 29,887 1.4% 8,204 0.4% (21,683) (264.3)%
------ ----- -------
Operating income 268,830 12.6% 288,080 13.5% (19,250) (6.7)%
Interest income 2,465 0.1% 2,452 0.1% 13 0.5%
Equity earnings in affiliates 4,308 0.2% 3,687 0.2% 621 16.8%
Other income 3,204 0.2% 3,141 0.1% 63 2.0%
Interest expense (3,730) (0.2)% (2,307) (0.1)% (1,423) (61.7)%
------ ------ ------
Income before income taxes 275,077 12.9% 295,053 13.8% (19,976) (6.8)%
Income taxes 96,532 4.5% 91,431 4.3% (5,101) (5.6)%
------ ------ ------
Effective tax rate 35.1% 31.0% (4.1)%
Net income including non-controlling interests 178,545 8.4% 203,622 9.5% (25,077) (12.3)%
Non-controlling interests in subsidiaries' loss (929) - (1,834) (0.1)% 905 49.3%
------
Net income $179,474 8.4% $205,456 9.6% $(25,982) (12.6)%
======== ======== ========
Basic earnings per share $2.25 $2.50 $(0.25) (10.0)%
Diluted earnings per share $2.22 $2.47 $(0.25) (10.1)%
Weighted average shares (basic) 79,779 82,260
Weighted average shares (diluted) 80,702 83,314
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Non-GAAP Financial Measures
Three months ended September 30, Nine months ended September 30,
-------------------------------- -------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Operating income as reported $76,117 $95,178 $268,830 $288,080
Special items (pre-tax):
Rationalization and asset impairment
charges (1) 29,068 6,302 29,887 8,204
Venezuela foreign exchange losses (2) - - 21,133 12,198
---
Adjusted operating income (4) $105,185 $101,480 $319,850 $308,482
======== ======== ======== ========
Net income as reported $45,689 $66,044 $179,474 $205,456
Special items (after-tax):
Rationalization and asset impairment
charges (1) 30,056 6,098 30,747 7,350
Venezuela foreign exchange losses (2) - - 21,133 12,198
Special items attributable to non-
controlling (805) (1,021) (805) (1,021)
interests (3)
Adjusted net income (4) $74,940 $71,121 $230,549 $223,983
======= ======= ======== ========
Diluted earnings per share as reported $0.57 $0.80 $2.22 $2.47
Special items 0.37 0.06 0.64 0.22
Adjusted diluted earnings per share (4) $0.94 $0.86 $2.86 $2.69
===== ===== ===== =====
Weighted average shares (diluted) 79,725 82,707 80,702 83,314
(1) The three and nine months ended
September 30, 2014 include a non-
cash asset impairment charge of
$32.4 million partially offset by
net rationalization gains including
a gain on the sale of real estate.
The three and nine months ended
September 30, 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 at
rationalized operations.
(2) The nine months ended September 30,
2014 represents the impact of the
Venezuelan remeasurement loss
related to the adoption of a new
foreign exchange mechanism in the
first quarter. The nine months
ended September 30, 2013 represents
the impact of the devaluation of the
Venezuelan currency.
(3) Represents the portion of special
items attributable to non-
controlling interests.
(4) 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 September 30, 2014 December 31, 2013
------------------ -----------------
Cash and cash equivalents $279,523 $299,825
Total current assets 1,209,836 1,130,775
Property, plant and equipment, net 450,016 484,005
Total assets 2,112,519 2,151,867
Total current liabilities 571,701 456,917
Short-term debt (1) 87,501 15,296
Long-term debt 1,041 3,791
Total equity 1,376,479 1,530,688
Net Operating Working Capital September 30, 2014 December 31, 2013
------------------ -----------------
Accounts receivable $354,376 $367,134
Inventory 337,197 349,963
Trade accounts payable 186,751 212,799
------- -------
Net operating working capital $504,822 $504,298
======== ========
Net operating working capital to net sales (2) 17.6% 17.6%
Invested Capital September 30, 2014 December 31, 2013
------------------ -----------------
Short-term debt (1) $87,501 $15,296
Long-term debt 1,041 3,791
----- -----
Total debt 88,542 19,087
Total equity 1,376,479 1,530,688
--------- ---------
Invested capital $1,465,021 $1,549,775
========== ==========
Total debt / invested capital 6.0% 1.2%
Return on invested capital (3) 18.3% 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 September 30,
--------------------------------
2014 2013
---- ----
OPERATING ACTIVITIES:
Net income $45,689 $66,044
Non-controlling interests in subsidiaries'
loss (857) (1,792)
---- ------
Net income including non-controlling
interests 44,832 64,252
Adjustments to reconcile Net income
including non-controlling interests to Net
cash
provided by operating activities:
Rationalization and asset impairment charges 28,588 4,695
Depreciation and amortization 17,117 17,326
Equity earnings in affiliates, net (404) (431)
Pension expense 4,158 7,326
Pension contributions and payments (10,479) (3,066)
Other non-cash items, net 9,382 5,421
Changes in operating assets and liabilities,
net of effects from acquisitions:
Decrease in accounts receivable 20,953 25,385
Decrease in inventories 6,302 2,419
Increase (decrease) in trade accounts
payable 3,915 (20,863)
Net change in other current assets and
liabilities 25,919 50,006
Net change in other long-term assets and
liabilities (835) 2,570
---- -----
NET CASH PROVIDED BY OPERATING ACTIVITIES 149,448 155,040
INVESTING ACTIVITIES:
Capital expenditures (15,483) (28,643)
Acquisition of businesses, net of cash
acquired - (260)
Proceeds from sale of property, plant and
equipment 11,537 204
------ ---
NET CASH USED BY INVESTING ACTIVITIES (3,946) (28,699)
FINANCING ACTIVITIES:
Net change in borrowings 81,257 404
Proceeds from exercise of stock options 1,935 2,873
Excess tax benefits from stock-based
compensation 883 1,508
Purchase of shares for treasury (130,070) (43,964)
Cash dividends paid to shareholders (18,276) (16,407)
------- -------
NET CASH USED BY FINANCING ACTIVITIES (64,271) (55,586)
Effect of exchange rate changes on Cash and
cash equivalents (5,993) 3,165
------ -----
INCREASE IN CASH AND CASH EQUIVALENTS 75,238 73,920
Cash and cash equivalents at beginning of
period 204,285 256,389
-------
Cash and cash equivalents at end of period $279,523 $330,309
======== ========
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
Condensed Consolidated Statements of Cash Flows
Nine months ended September 30,
-------------------------------
2014 2013
---- ----
OPERATING ACTIVITIES:
Net income $179,474 $205,456
Non-controlling interests in subsidiaries'
loss (929) (1,834)
---- ------
Net income including non-controlling
interests 178,545 203,622
Adjustments to reconcile Net income
including non-controlling interests to Net
cash
provided by operating activities:
Rationalization and asset impairment charges 29,447 5,049
Depreciation and amortization 53,017 51,881
Equity earnings in affiliates, net (1,901) (1,313)
Pension expense 9,634 22,261
Pension contributions and payments (34,643) (84,417)
Other non-cash items, net 30,041 29,757
Changes in operating assets and liabilities,
net of effects from acquisitions:
Increase in accounts receivable (22,388) (17,982)
Increase in inventories (11,153) (9,889)
Decrease in trade accounts payable (11,534) (32,703)
Net change in other current assets and
liabilities 53,299 75,627
Net change in other long-term assets and
liabilities (4,311) 198
------ ---
NET CASH PROVIDED BY OPERATING ACTIVITIES 268,053 242,091
INVESTING ACTIVITIES:
Capital expenditures (55,430) (59,691)
Acquisition of businesses, net of cash
acquired (892) (4,936)
Proceeds from sale of property, plant and
equipment 17,046 796
Other investing activities 778 (4,217)
NET CASH USED BY INVESTING ACTIVITIES (38,498) (68,048)
FINANCING ACTIVITIES:
Net change in borrowings 71,114 (2,351)
Proceeds from exercise of stock options 5,945 16,077
Excess tax benefits from stock-based
compensation 3,361 6,973
Purchase of shares for treasury (249,403) (113,641)
Cash dividends paid to shareholders (55,395) (32,987)
Transactions with non-controlling interests (2,330) (2,809)
NET CASH USED BY FINANCING ACTIVITIES (226,708) (128,738)
Effect of exchange rate changes on Cash and
cash equivalents (23,149) (1,460)
------- ------
(DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (20,302) 43,845
Cash and cash equivalents at beginning of
period 299,825 286,464
Cash and cash equivalents at end of period $279,523 $330,309
======== ========
Cash dividends paid per share $0.69 $0.40
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 September 30, 2014
Net sales $439,621 $107,507 $57,404 $32,862 $78,383 $ - $715,777
Inter-segment sales 30,365 4,533 3,595 9 2,009 (40,511) -
Total $469,986 $112,040 $60,999 $32,871 $80,392 $(40,511) $715,777
======== ======== ======= ======= ======= ======== ========
EBIT (1) $84,450 $15,302 $(28,871) $(1,172) $8,947 $(324) $78,332
As a percent of total sales 18.0% 13.7% (47.3)% (3.6)% 11.1% 10.9%
Special items (gain) charge (2) $ - $(81) $28,567 $582 $ - $ - $29,068
EBIT, as adjusted (4) $84,450 $15,221 $(304) $(590) $8,947 $(324) $107,400
As a percent of total sales 18.0% 13.6% (0.5)% (1.8)% 11.1% 15.0%
Three months ended September 30, 2013
Net sales $404,113 $98,522 $63,834 $51,715 $73,691 $ - $691,875
Inter-segment sales 35,355 5,256 3,821 151 2,311 (46,894) -
Total $439,468 $103,778 $67,655 $51,866 $76,002 $(46,894) $691,875
======== ======== ======= ======= ======= ======== ========
EBIT (1) $75,242 $6,286 $(5,703) $15,942 $6,917 $(822) $97,862
As a percent of total sales 17.1% 6.1% (8.4)% 30.7% 9.1% 14.1%
Special items (gain) charge (3) $(17) $1,595 $4,724 $ - $ - $ - $6,302
EBIT, as adjusted (4) $75,225 $7,881 $(979) $15,942 $6,917 $(822) $104,164
As a percent of total sales 17.1% 7.6% (1.4)% 30.7% 9.1% 15.1%
Nine months ended September 30, 2014
Net sales $1,271,017 $328,487 $185,687 $115,906 $228,273 $ - $2,129,370
Inter-segment sales 96,668 15,887 11,644 73 6,389 (130,661) -
Total $1,367,685 $344,374 $197,331 $115,979 $234,662 $(130,661) $2,129,370
========== ======== ======== ======== ======== ========= ==========
EBIT (1) $247,077 $38,489 $(29,029) $(5,545) $22,183 $3,167 $276,342
As a percent of total sales 18.1% 11.2% (14.7)% (4.8)% 9.5% 13.0%
Special items (gain) charge (2) $(68) $923 $28,450 $21,715 $ - $ - $51,020
EBIT, as adjusted (4) $247,009 $39,412 $(579) $16,170 $22,183 $3,167 $327,362
As a percent of total sales 18.1% 11.4% (0.3)% 13.9% 9.5% 15.4%
Nine months ended September 30, 2013
Net sales $1,242,736 $317,674 $203,112 $132,592 $241,766 $ - $2,137,880
Inter-segment sales 99,869 13,865 12,579 222 7,209 (133,744) -
Total $1,342,605 $331,539 $215,691 $132,814 $248,975 $(133,744) $2,137,880
========== ======== ======== ======== ======== ========= ==========
EBIT (1) $233,553 $26,450 $(3,464) $19,921 $21,411 $(2,963) $294,908
As a percent of total sales 17.4% 8.0% (1.6)% 15.0% 8.6% 13.8%
Special items (gain) charge (3) $1,109 $1,664 $5,431 $12,198 $ - $ - $20,402
EBIT, as adjusted (4) $234,662 $28,114 $1,967 $32,119 $21,411 $(2,963) $315,310
As a percent of total sales 17.5% 8.5% 0.9% 24.2% 8.6% 14.7%
(1) EBIT is defined as Operating income
plus Equity earnings in affiliates
and Other income.
(2) Special items in the three and nine
months ended September 30, 2014
include non-cash asset impairment
charges partially offset by net
rationalization gains including a
gain on the sale of real estate.
Special items in the nine months
ended September 30, 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 nine
months ended September 30, 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 September 30th 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 $404,113 $23,208 $9,917 $4,670 $(2,287) $439,621
Europe Welding 98,522 12,340 - (1,048) (2,307) 107,507
Asia Pacific Welding 63,834 (7,000) - 932 (362) 57,404
South America Welding 51,715 (20,858) - 13,155 (11,150) 32,862
The Harris Products Group 73,691 5,432 - (709) (31) 78,383
------ ----- --- ---- ---
Consolidated $691,875 $13,122 $9,917 $17,000 $(16,137) $715,777
======== ======= ====== ======= ======== ========
% Change
North America Welding 5.7% 2.5% 1.2% (0.6)% 8.8%
Europe Welding 12.5% - (1.1)% (2.3)% 9.1%
Asia Pacific Welding (11.0)% - 1.5% (0.6)% (10.1)%
South America Welding (40.3)% - 25.4% (21.6)% (36.5)%
The Harris Products Group 7.4% - (1.0)% - 6.4%
Consolidated 1.9% 1.4% 2.5% (2.3)% 3.5%
Nine Months Ended September 30th 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 $1,242,736 $(996) $26,248 $10,345 $(7,316) $1,271,017
Europe Welding 317,674 10,263 - (2,810) 3,360 328,487
Asia Pacific Welding 203,112 (12,650) - 977 (5,752) 185,687
South America Welding 132,592 (31,654) - 43,565 (28,597) 115,906
The Harris Products Group 241,766 1,848 - (14,484) (857) 228,273
------- ----- --- ------- ----
Consolidated $2,137,880 $(33,189) $26,248 $37,593 $(39,162) $2,129,370
========== ======== ======= ======= ======== ==========
% Change
North America Welding (0.1)% 2.1% 0.8% (0.6)% 2.3%
Europe Welding 3.2% - (0.9)% 1.1% 3.4%
Asia Pacific Welding (6.2)% - 0.5% (2.8)% (8.6)%
South America Welding (23.9)% - 32.9% (21.6)% (12.6)%
The Harris Products Group 0.8% - (6.0)% (0.4)% (5.6)%
Consolidated (1.6)% 1.2% 1.8% (1.8)% (0.4)%
SOURCE Lincoln Electric Holdings, Inc.
