• Lincoln Electric Reports Second Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 28 июл 2022 06:30:01   America/Chicago

     
    Second Quarter 2022 Highlights

    • Net sales increase 17.3% to record $969.6 million on 20.5% higher organic sales
       
    • Record Operating and Adjusted operating income margin of 17.3%
       
    • EPS increases 36.3% to record $2.18; Adjusted EPS increases 30.5% to record $2.18
       
    • ROIC increases 490 basis points to 26.3%
       
    • Returned $57.7 million in the quarter and $195.6 million year-to-date to shareholders through dividends and share repurchases

    CLEVELAND, July 28, 2022 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported second quarter 2022 net income of $127.8 million, or diluted earnings per share (EPS) of $2.18, which includes special item after-tax net charges of $0.4 million. This compares with prior year period net income of $96.1 million, or $1.60 EPS, which included special item after-tax charges of $4.5 million, or $0.07 EPS. Excluding these items, second quarter 2022 Adjusted net income was $128.2 million, or $2.18 Adjusted EPS. This compares with Adjusted net income of $100.6 million, or $1.67 Adjusted EPS, in the prior year period.

    Second quarter 2022 sales increased 17.3% to $969.6 million from a 20.5% increase in organic sales and a 2.9% benefit from acquisitions, partially offset by 6.1% unfavorable foreign exchange. Operating income for the second quarter 2022 was $167.5 million, or 17.3% of sales. This compares with operating income of $121.8 million, or 14.7% of sales, in the prior year period. Excluding special items, Adjusted operating income was $168.1 million, or 17.3% of sales, as compared with $125.1 million, or 15.1% of sales, in the prior year period.

    “I am pleased to report that we maintained strong momentum in the second quarter – achieving record sales, adjusted operating profit margin, earnings, and returns,” stated Christopher L. Mapes, Lincoln’s Chairman, President and Chief Executive Officer. “Solid industrial demand and automation sales in Americas Welding led growth and we achieved strong margin performance across both welding segments despite challenging operating conditions in International Welding.” Mapes continued, “I am proud of the continued success of our regional operating teams in mitigating the unprecedented headwinds we have been managing to effectively serve our customers and achieve our Higher Standard 2025 strategy goals.”

    Six Months 2022 Summary

    Net income for the six months ended June 30, 2022 was $253.9 million, or $4.30 EPS. This compares with $170.3 million, or $2.83 EPS, in the comparable 2021 period. Reported EPS includes special item after-tax net gains of $1.0 million or $0.01 EPS, as compared with special item after-tax net charges of $13.1 million, or $0.21 EPS in the prior year period. Excluding these items, adjusted net income for the six months ended June 30, 2022 increased 37.9% to $252.9 million, or $4.29 EPS, compared with $183.4 million, or $3.04 EPS, in the comparable 2021 period.

    Sales increased 19.7% to $1.9 billion in the six months ended June 30, 2022 from a 21.3% increase in organic sales and a 3.7% benefit from acquisitions, partially offset by 5.3% unfavorable foreign exchange. Operating income for the six months ended June 30, 2022 was $328.7 million, or 17.3% of sales. This compares with operating income of $225.8 million, or 14.3% of sales, in the comparable 2021 period. Excluding special items, adjusted operating income was $331.2 million, or 17.5% of sales, as compared with $234.3 million, or 14.8% of sales, in the comparable 2021 period.

    Webcast Information

    A conference call to discuss second quarter 2022 financial results will be webcast live today, July 28, 2022, 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 register here to receive the dial-in number along with a unique PIN number that is required to access the call. 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 has 56 manufacturing locations in 19 countries and 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 and Return on invested capital 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 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, including the current coronavirus disease ("COVID-19") pandemic, 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, 2021 and on Form 10-Q for the quarter ended March 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 June 30,  Prior Year 
      2022  % of Sales    2021    % of Sales $ % 
    Net sales $969,589   100.0 %$826,454 100.0 %$143,135  17.3 %
    Cost of goods sold  636,108   65.6 % 552,445 66.8 % (83,663) (15.1)%
    Gross profit  333,481   34.4 % 274,009 33.2 % 59,472  21.7 %
    Selling, general & administrative expenses  166,792   17.2 % 151,557 18.3 % (15,235) (10.1)%
    Rationalization and asset impairment charges  (844)  0.1 % 630 0.1 % 1,474  234.0 %
    Operating income  167,533   17.3 % 121,822 14.7 % 45,711  37.5 %
    Interest expense, net  6,459   0.7 % 5,663 0.7 % (796) (14.1)%
    Other income (expense)  (1,134)  0.1 % 1,702 0.2 % (2,836) (166.6)%
    Income before income taxes  159,940   16.5 % 117,861 14.3 % 42,079  35.7 %
    Income taxes  32,118   3.3 % 21,581 2.6 % (10,537) (48.8)%
    Effective tax rate  20.1 %    18.3 %   (1.8)%  
    Net income including non-controlling interests  127,822   13.2 % 96,280 11.6 % 31,542  32.8 %
    Non-controlling interests in subsidiaries’ income (loss)  (1)  —  175 —  (176) (100.6)%
    Net income $127,823   13.2 %$96,105 11.6 %$31,718  33.0 %
                      
    Basic earnings per share $2.20     $1.62   $0.58  35.8 %
    Diluted earnings per share $2.18     $1.60   $0.58  36.3 %
    Weighted average shares (basic)  58,016      59,464        
    Weighted average shares (diluted)  58,688      60,164        


                      
                    Fav (Unfav) to 
      Six Months Ended June 30,  Prior Year 
      2022 % of Sales    2021 % of Sales    $ % 
    Net sales $1,895,037  100.0 %$1,583,475 100.0 %$311,562  19.7 %
    Cost of goods sold  1,231,779  65.0 % 1,055,699 66.7 % (176,080) (16.7)%
    Gross profit  663,258  35.0 % 527,776 33.3 % 135,482  25.7 %
    Selling, general & administrative expenses  333,478  17.6 % 297,233 18.8 % (36,245) (12.2)%
    Rationalization and asset impairment charges  1,041  0.1 % 4,793 0.3 % 3,752  78.3 %
    Operating income  328,739  17.3 % 225,750 14.3 % 102,989  45.6 %
    Interest expense, net  12,657  0.7 % 11,022 0.7 % (1,635) (14.8)%
    Other income (expense)  3,500  0.2 % 286 0.0 % 3,214  1,123.8 %
    Income before income taxes  319,582  16.9 % 215,014 13.6 % 104,568  48.6 %
    Income taxes  65,729  3.5 % 44,601 2.8 % (21,128) (47.4)%
    Effective tax rate  20.6%    20.7 %   0.1 %  
    Net income including non-controlling interests  253,853  13.4 % 170,413 10.8 % 83,440  49.0 %
    Non-controlling interests in subsidiaries’ income (loss)  —  —  131 —  (131) (100.0)%
    Net income $253,853  13.4 %$170,282 10.8 %$83,571  49.1 %
                      
    Basic earnings per share $4.35    $2.86   $1.49  52.1 %
    Diluted earnings per share $4.30    $2.83   $1.47  51.9 %
    Weighted average shares (basic)  58,311     59,553        
    Weighted average shares (diluted)  58,970     60,229        



    Lincoln Electric Holdings, Inc.
    Financial Highlights
    (In thousands)
    (Unaudited)

    Balance Sheet Highlights

            
    Selected Consolidated Balance Sheet Data    June 30, 2022    December 31, 2021 
    Cash and cash equivalents $152,796 $192,958 
    Accounts receivable, net  518,371  429,074 
    Inventories  639,393  539,919 
    Total current assets  1,465,203  1,289,593 
    Property, plant and equipment, net  503,088  511,744 
    Total assets  2,741,813  2,592,307 
    Trade accounts payable  364,495  330,230 
    Total current liabilities  903,683  755,905 
    Short-term debt (1)  125,458  52,730 
    Long-term debt, less current portion  712,908  717,089 
    Total equity  912,983  863,909 
            
    Operating Working Capital June 30, 2022 December 31, 2021 
    Average operating working capital to Net sales (2)  19.0 % 16.3 %
            
    Invested Capital June 30, 2022 December 31, 2021 
    Short-term debt (1) $125,458 $52,730 
    Long-term debt, less current portion  712,908  717,089 
    Total debt  838,366  769,819 
    Total equity  912,983  863,909 
    Invested capital $1,751,349 $1,633,728 
            
    Total debt / invested capital  47.9 % 47.1 %
    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 June 30,   Six Months Ended June 30,  
      2022  2021   2022  2021  
    Operating income as reported $167,533  $121,822   $328,739  $225,750  
    Special items (pre-tax):              
    Rationalization and asset impairment charges (2)  (844)  630    1,041   4,793  
    Acquisition transaction costs (3)  —   810    —   1,923  
    Amortization of step up in value of acquired inventories (4)  1,459   1,841    1,459   1,841  
    Adjusted operating income (1) $168,148  $125,103   $331,239  $234,307  
    As a percent of total sales  17.3 % 15.1 %  17.5 % 14.8 %
                   
    Net income as reported $127,823  $96,105   $253,853  $170,282  
    Special items:              
    Rationalization and asset impairment charges (2)  (844)  630    1,041   4,793  
    Acquisition transaction costs (3)  —   810    —   1,923  
    Pension charges and other net gains (5)  —   1,650    (4,273)  6,536  
    Amortization of step up in value of acquired inventories (4)  1,459   1,841    1,459   1,841  
    Tax effect of Special items (6)  (252)  (433)   789   (1,994) 
    Adjusted net income (1)  128,186   100,603    252,869   183,381  
    Non-controlling interests in subsidiaries’ income (loss)  (1)  175    —   131  
    Interest expense, net  6,459   5,663    12,657   11,022  
    Income taxes as reported  32,118   21,581    65,729   44,601  
    Tax effect of Special items (6)  252   433    (789)  1,994  
    Adjusted EBIT (1) $167,014  $128,455   $330,466  $241,129  
                   
    Effective tax rate as reported  20.1 % 18.3 %  20.6 % 20.7 %
    Net special item tax impact  0.1 % (0.4)%  (0.2)% (0.5)%
    Adjusted effective tax rate (1)  20.2 % 17.9 %  20.4 % 20.2 %
                   
    Diluted earnings per share as reported $2.18  $1.60   $4.30  $2.83  
    Special items per share  —   0.07    (0.01)  0.21  
    Adjusted diluted earnings per share (1) $2.18  $1.67   $4.29  $3.04  
                   
    Weighted average shares (diluted)  58,688   60,164    58,970   60,229  
    1. Adjusted operating income, Adjusted net income, Adjusted EBIT, Adjusted effective tax rate and Adjusted diluted earnings per share are non-GAAP financial measures. Refer to Non-GAAP Information section.
    2. Primarily related to severance, gains or losses on the disposal of assets.
    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. Pension settlement charges due to lump sum pension payments and other net gains primarily due to the final settlement associated with the termination of a pension plan and are included in Other income (expense).
    6. 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 June 30,  
    Return on Invested Capital    2022     2021  
    Net income as reported $360,037  $293,839  
    Rationalization and asset impairment charges  6,075   20,502  
    Acquisition transaction costs  —   1,923  
    Pension charges and other net gains  115,693   11,321  
    Amortization of step up in value of acquired inventories  5,422   1,841  
    Tax effect of Special items (2)  (44,405)  (5,036) 
    Adjusted net income (1) $442,822  $324,390  
    Plus: Interest expense, net of tax of $6,336 and $5,843 in 2022 and 2021, respectively  18,832   17,368  
    Less: Interest income, net of tax of $333 and $389 in 2022 and 2021, respectively  986   1,166  
    Adjusted net income before tax-effected interest $460,668  $340,592  
            
    Invested Capital June 30, 2022 June 30, 2021 
    Short-term debt $125,458  $10,435  
    Long-term debt, less current portion  712,908   718,137  
    Total debt  838,366   728,572  
    Total equity  912,983   859,623  
    Invested capital $1,751,349  $1,588,195  
            
    Return on invested capital (1)  26.3 % 21.4 %
    1. Adjusted net income and Return on invested capital 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 June 30, 
     2022  2021 
    OPERATING ACTIVITIES:     
    Net income$127,823  $96,105 
    Non-controlling interests in subsidiaries’ income (loss) (1)  175 
    Net income including non-controlling interests 127,822   96,280 
    Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities:     
    Rationalization and asset impairment net gains (1,301)  (1,434)
    Depreciation and amortization 19,868   19,390 
    Equity earnings in affiliates, net (67)  (114)
    Other non-cash items, net 11,043   (4,123)
    Changes in operating assets and liabilities, net of effects from acquisitions:     
    Increase in accounts receivable (17,839)  (21,776)
    Increase in inventories (57,187)  (40,618)
    Increase in trade accounts payable 4,968   20,950 
    Net change in other current assets and liabilities 14,210   24,950 
    Net change in other long-term assets and liabilities (3,306)  6,467 
    NET CASH PROVIDED BY OPERATING ACTIVITIES 98,211   99,972 
          
    INVESTING ACTIVITIES:     
    Capital expenditures (15,930)  (17,832)
    Acquisition of businesses, net of cash acquired (82)  (83,723)
    Proceeds from sale of property, plant and equipment 1,123   1,973 
    NET CASH USED BY INVESTING ACTIVITIES (14,889)  (99,582)
          
    FINANCING ACTIVITIES:     
    Net change in borrowings (24,479)  (144)
    Proceeds from exercise of stock options 382   2,892 
    Purchase of shares for treasury (25,119)  (25,229)
    Cash dividends paid to shareholders (32,553)  (30,380)
    Other financing activities —   (763)
    NET CASH USED BY FINANCING ACTIVITIES (81,769)  (53,624)
          
    Effect of exchange rate changes on Cash and cash equivalents (3,130)  1,992 
    DECREASE IN CASH AND CASH EQUIVALENTS (1,577)  (51,242)
    Cash and cash equivalents at beginning of period 154,373   242,126 
    Cash and cash equivalents at end of period$152,796  $190,884 
          
    Cash dividends paid per share$0.56  $0.51 


    Lincoln Electric Holdings, Inc.
    Financial Highlights
    (In thousands, except per share amounts)
    (Unaudited)

    Condensed Consolidated Statements of Cash Flows

         Six Months Ended June 30, 
      2022  2021 
    OPERATING ACTIVITIES:      
    Net income $253,853  $170,282 
    Non-controlling interests in subsidiaries’ income (loss)  —   131 
    Net income including non-controlling interests  253,853   170,413 
    Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities:      
    Rationalization and asset impairment net gains  (113)  (1,374)
    Depreciation and amortization  39,759   38,508 
    Equity earnings in affiliates, net  (180)  (291)
    Other non-cash items, net  3,822   (4,820)
    Changes in operating assets and liabilities, net of effects from acquisitions:      
    Increase in accounts receivable  (103,959)  (87,571)
    Increase in inventories  (112,594)  (83,186)
    Increase in trade accounts payable  44,252   63,275 
    Net change in other current assets and liabilities  21,174   47,121 
    Net change in other long-term assets and liabilities  (4,713)  3,159 
    NET CASH PROVIDED BY OPERATING ACTIVITIES  141,301   145,234 
           
    INVESTING ACTIVITIES:      
    Capital expenditures  (34,602)  (27,768)
    Acquisition of businesses, net of cash acquired  (22,095)  (83,723)
    Proceeds from sale of property, plant and equipment  1,692   2,557 
    Other investing activities  —   6,500 
    NET CASH USED BY INVESTING ACTIVITIES  (55,005)  (102,434)
           
    FINANCING ACTIVITIES:      
    Net change in borrowings  71,829   1,163 
    Proceeds from exercise of stock options  1,417   5,672 
    Purchase of shares for treasury  (129,698)  (53,688)
    Cash dividends paid to shareholders  (65,914)  (61,379)
    Other financing activities  —   (763)
    NET CASH USED BY FINANCING ACTIVITIES  (122,366)  (108,995)
           
    Effect of exchange rate changes on Cash and cash equivalents  (4,092)  (200)
    DECREASE IN CASH AND CASH EQUIVALENTS  (40,162)  (66,395)
    Cash and cash equivalents at beginning of period  192,958   257,279 
    Cash and cash equivalents at end of period $152,796  $190,884 
           
    Cash dividends paid per share $1.12  $1.02 


    Lincoln Electric Holdings, Inc.
    Segment Highlights (1)
    (In thousands)
    (Unaudited)

                     
         Americas    International     The Harris    Corporate /       
      Welding Welding Products Group Eliminations Consolidated 
    Three months ended June 30, 2022                
    Net sales $595,659 $236,629 $137,301 $—  $969,589 
    Inter-segment sales  29,031  9,527  2,866  (41,424)  — 
    Total sales $624,690 $246,156 $140,167 $(41,424) $969,589 
                     
    Net income             $127,823 
    As a percent of total sales              13.2%
                     
    EBIT (1) $117,606 $34,855 $17,922 $(3,984) $166,399 
    As a percent of total sales  18.8% 14.2% 12.8%    17.2%
    Special items charges (gains) (3)  461  154  —  —   615 
    Adjusted EBIT (2) $118,067 $35,009 $17,922 $(3,984) $167,014 
    As a percent of total sales  18.9 % 14.2 % 12.8 %    17.2 %
                     
    Three months ended June 30, 2021                
    Net sales $457,468 $252,352 $116,634 $—  $826,454 
    Inter-segment sales  39,765  6,897  2,284  (48,946)  — 
    Total sales $497,233 $259,249 $118,918 $(48,946) $826,454 
                     
    Net income             $96,105 
    As a percent of total sales              11.6 %
                     
    EBIT (1) $82,484 $27,526 $18,212 $(4,698) $123,524 
    As a percent of total sales  16.6 % 10.6 % 15.3 %    14.9 %
    Special items charges (gains) (4)  1,650  2,471  —  810   4,931 
    Adjusted EBIT (2) $84,134 $29,997 $18,212 $(3,888) $128,455 
    As a percent of total sales  16.9 % 11.6 % 15.3 %    15.5 %
    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 2022 primarily reflect the amortization of step up in value of acquired inventories of $1,459 in Americas Welding related to an acquisition and Rationalization and asset impairment net gains of $998 in Americas Welding and net charges of $154 in International Welding.
    4. Special items in 2021 reflect Rationalization and asset impairment charges of $630 in International Welding, pension settlement charges of $1,650 in Americas Welding, amortization of step up in value of acquired inventories of $1,841 in International Welding and acquisition transaction costs of $810 in Corporate/Eliminations.

    Lincoln Electric Holdings, Inc.
    Segment Highlights (1)
    (In thousands)
    (Unaudited)

                     
         Americas    International    The Harris    Corporate /       
      Welding Welding Products Group Eliminations Consolidated 
    Six months ended June 30, 2022                
    Net sales $1,129,714  $494,670 $270,653 $—  $1,895,037  
    Inter-segment sales  57,187   15,755  5,928  (78,870)  —  
    Total sales $1,186,901  $510,425 $276,581 $(78,870) $1,895,037  
                     
    Net income             $253,853  
    As a percent of total sales              13.4 %
                     
    EBIT (1) $232,909  $70,595 $37,520 $(8,785) $332,239  
    As a percent of total sales  19.6 % 13.8 % 13.6 %    17.5 %
    Special items charges (gains) (3)  (3,274)  1,501  —  —   (1,773) 
    Adjusted EBIT (2) $229,635  $72,096 $37,520 $(8,785) $330,466  
    As a percent of total sales  19.3 % 14.1 % 13.6 %    17.4 %
                     
    Six months ended June 30, 2021                
    Net sales $882,710  $475,431 $225,334 $—  $1,583,475  
    Inter-segment sales  72,513   11,182  4,431  (88,126)  —  
    Total sales $955,223  $486,613 $229,765 $(88,126) $1,583,475  
                     
    Net income             $170,282  
    As a percent of total sales              10.8 %
                     
    EBIT (1) $154,661  $41,733 $36,909 $(7,267) $226,036  
    As a percent of total sales  16.2 % 8.6 % 16.1 %    14.3 %
    Special items charges (gains) (4)  6,090   7,080  —  1,923   15,093  
    Adjusted EBIT (2) $160,751  $48,813 $36,909 $(5,344) $241,129  
    As a percent of total sales  16.8 % 10.0 % 16.1 %    15.2 %
    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 2022 primarily reflect Rationalization and asset impairment charges of $2,039 in International Welding and net gains of $998 in Americas Welding, amortization of step up in value of acquired inventories of $1,459 in Americas Welding and a $3,735 net gain related to final settlement associated with the termination of a pension plan in Americas Welding.
    4. Special items in 2021 reflect pension settlement charges of $6,090 and $446 in Americas Welding and International Welding, respectively, Rationalization and asset impairment charges of $4,793 in International Welding, amortization of step up in value of acquired inventories of $1,841 in International Welding and acquisition transaction costs of $1,923 in Corporate/Eliminations.

    Lincoln Electric Holdings, Inc.
    Change in Net Sales by Segment
    (In thousands)
    (Unaudited)

    Three Months Ended June 30th Change in Net Sales by Segment

                       
        Change in Net Sales due to:    
     Net Sales          Foreign Net Sales 
     2021 Volume Acquisitions Price Exchange 2022 
    Operating Segments                  
    Americas Welding$457,468 $45,284  $5,437 $89,854 $(2,384) $595,659  
    International Welding 252,352  (16,862)  —  46,813  (45,674)  236,629  
    The Harris Products Group 116,634  (574)  18,407  4,820  (1,986)  137,301  
    Consolidated$ 826,454 $ 27,848  $ 23,844 $ 141,487 $ (50,044) $ 969,589  
                       
    % Change                  
    Americas Welding    9.9 % 1.2 % 19.6 % (0.5)% 30.2 %
    International Welding    (6.7)% —  18.6 % (18.1)% (6.2)%
    The Harris Products Group    (0.5)% 15.8 % 4.1 % (1.7)% 17.7 %
    Consolidated     3.4 %  2.9 %  17.1 %  (6.1)%  17.3 %

    Six Months Ended June 30th Change in Net Sales by Segment

                        
            Change in Net Sales due to:    
      Net Sales          Foreign Net Sales 
      2021 Volume Acquisitions Price Exchange 2022 
    Operating Segments                   
    Americas Welding $882,710 $67,288  $7,182 $174,072 $(1,538) $1,129,714 
    International Welding  475,431  (17,886)  17,632  99,003  (79,510)  494,670 
    The Harris Products Group  225,334  2,568   33,859  11,543  (2,651)  270,653 
    Consolidated $ 1,583,475 $ 51,970  $ 58,673 $ 284,618 $ (83,699) $ 1,895,037 
                        
    % Change                   
    Americas Welding     7.6 % 0.8 % 19.7 % (0.2)% 28.0 %
    International Welding     (3.8)% 3.7 % 20.8 % (16.7)% 4.0 %
    The Harris Products Group     1.1 % 15.0 % 5.1 % (1.2)% 20.1 %
    Consolidated      3.3 %  3.7 %  18.0 %  (5.3)%  19.7 %

    Contact

Amanda Butler
Vice President, Investor Relations & Communications
Tel: 216.383.2534
Email: Amanda_Butler@lincolnelectric.com

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