Lincoln Electric Reports Third Quarter 2023 Results


Third Quarter 2023 Highlights

  • Net sales increase 10.5% to record $1,033 million
  • Operating income margin of 16.6%; Record adjusted operating income margin of 17.7%
  • Record EPS of $2.22; Record adjusted EPS of $2.40
  • Cash flows from operations increase 71% to record $223 million with 141% cash conversion(1)
  • Returned $82 million to shareholders through dividends and share repurchases

CLEVELAND, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported third quarter 2023 net income of $129.3 million, or diluted earnings per share (EPS) of $2.22, which includes special item after-tax net charges of $10.1 million, or $0.18 EPS. This compares with prior year period net income of $109.2 million, or $1.87 EPS, which included special item after-tax net charges of $10.3 million. Excluding special items, third quarter 2023 adjusted net income was $139.5 million, or $2.40 adjusted EPS. This compares with adjusted net income of $119.6 million, or $2.04 adjusted EPS, in the prior year period.

Third quarter 2023 sales increased 10.5% to $1,033.2 million reflecting a 0.4% increase in organic sales, an 8.8% benefit from acquisitions and 1.2% favorable foreign exchange. Operating income for the third quarter 2023 was $171.4 million, or 16.6% of sales. This compares with operating income of $142.1 million, or 15.2% of sales, in the prior year period. Excluding special items, adjusted operating income was $183.4 million, or 17.7% of sales, as compared with $153.2 million, or 16.4% of sales, in the prior year period.

“I am pleased to report another quarter of record sales, profit, earnings, and cash flow performance,” commented Christopher L. Mapes, Chairman, President and Chief Executive Officer. "Our results reflect our commitment to putting customers first, delivering innovative solutions, maintaining effective price/cost management, and successfully executing our Higher Standard Strategy initiatives.” Mapes continued, “Our strong third quarter sales performance reflects acceleration from our automation acquisitions and low-to-mid single digit percent volume growth in our welding segments when normalizing third quarter shipping days to prior year. Given the resilience of key end markets, strong October order rates, and a high backlog of fourth quarter automation shipments, we expect to maintain strong sales performance through year-end,” Mapes concluded.

Nine Months 2023 Summary

Net income for the nine months ended September 30, 2023 was $388.6 million, or $6.67 EPS, which includes special item after-tax net charges of $17.3 million, or $0.30 EPS. This compares with prior period net income of $363.1 million, or $6.17 EPS, which included special item after-tax net charges of $9.4 million, or $0.16 EPS. Excluding special items, adjusted net income for the nine months ended September 30, 2023 increased 9.0% to $405.9 million, or $6.97 EPS, compared with $372.4 million, or $6.33 EPS, in the prior year period.

Sales increased 10.7% to $3,133.1 million in the nine months ended September 30, 2023 reflecting a 4.5% increase in organic sales and a 6.5% benefit from acquisitions, partially offset by 0.3% unfavorable foreign exchange. Operating income for the nine months ended September 30, 2023 was $513.8 million, or 16.4% of sales. This compares with operating income of $470.8 million, or 16.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $536.7 million, or 17.1% of sales, as compared with $484.4 million, or 17.1% of sales, in the prior year period.

Dividend

The Company’s Board of Directors declared an 11% increase in the quarterly cash dividend, from $0.64 per share to $0.71 per share, or $2.84 per share on an annual basis. The declared quarterly cash dividend of $0.71 per share is payable January 12, 2024 to shareholders of record as of December 31, 2023.

(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 third quarter 2023 financial results will be webcast live today, October 27, 2023, 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 71 manufacturing locations in 20 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, 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 September 30,  Prior Year 
  2023 % of Sales    2022    % of Sales $ % 
Net sales $1,033,214  100.0%$935,240 100.0%$97,974  10.5 %
Cost of goods sold  667,584  64.6% 625,722 66.9% (41,862) (6.7)%
Gross profit  365,630  35.4% 309,518 33.1% 56,112  18.1 %
Selling, general & administrative expenses  187,115  18.1% 159,045 17.0% (28,070) (17.6)%
Rationalization and asset impairment charges  7,074  0.7% 8,364 0.9% 1,290  15.4 %
Operating income  171,441  16.6% 142,109 15.2% 29,332  20.6 %
Interest expense, net  10,809  1.0% 8,210 0.9% (2,599) (31.7)%
Other income  801  0.1% 3,588 0.4% (2,787) (77.7)%
Income before income taxes  161,433  15.6% 137,487 14.7% 23,946  17.4 %
Income taxes  32,090  3.1% 28,262 3.0% (3,828) (13.5)%
Effective tax rate  19.9%    20.6%   0.7 %  
Net income $129,343  12.5%$109,225 11.7%$20,118  18.4 %
                  
Basic earnings per share $2.26    $1.89   $0.37  19.6 %
Diluted earnings per share $2.22    $1.87   $0.35  18.7 %
Weighted average shares (basic)  57,320     57,823        
Weighted average shares (diluted)  58,136     58,526        


                Fav (Unfav) to 
  Nine Months Ended September 30,  Prior Year 
  2023 % of Sales    2022 % of Sales    $ % 
Net sales $3,133,122  100.0%$2,830,277 100.0%$302,845  10.7 %
Cost of goods sold  2,038,707  65.1% 1,857,501 65.6% (181,206) (9.8)%
Gross profit  1,094,415  34.9% 972,776 34.4% 121,639  12.5 %
Selling, general & administrative expenses  569,979  18.2% 492,523 17.4% (77,456) (15.7)%
Rationalization and asset impairment charges  10,618  0.3% 9,405 0.3% (1,213) (12.9)%
Operating income  513,818  16.4% 470,848 16.6% 42,970  9.1 %
Interest expense, net  35,708  1.1% 20,867 0.7% (14,841) (71.1)%
Other income  11,727  0.4% 7,088 0.3% 4,639  65.4 %
Income before income taxes  489,837  15.6% 457,069 16.1% 32,768  7.2 %
Income taxes  101,232  3.2% 93,991 3.3% (7,241) (7.7)%
Effective tax rate  20.7%    20.6%   (0.1)%  
Net income $388,605  12.4%$363,078 12.8%$25,527  7.0 %
                  
Basic earnings per share $6.76    $6.24   $0.52  8.3 %
Diluted earnings per share $6.67    $6.17   $0.50  8.1 %
Weighted average shares (basic)  57,465     58,148        
Weighted average shares (diluted)  58,277     58,815        
                  


Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)
        
Balance Sheet Highlights
        
Selected Consolidated Balance Sheet Data    September 30, 2023    December 31, 2022 
Cash and cash equivalents $342,667 $197,150 
Accounts receivable, net  537,637  541,529 
Inventories  612,338  665,451 
Total current assets  1,672,294  1,557,790 
Property, plant and equipment, net  565,875  544,871 
Total assets  3,325,895  3,180,546 
Trade accounts payable  328,460  352,079 
Total current liabilities  808,142  852,897 
Short-term debt (1)  7,700  93,483 
Long-term debt, less current portion  1,102,858  1,110,396 
Total equity  1,225,582  1,034,041 
        
Operating Working Capital September 30, 2023 December 31, 2022 
Average operating working capital to Net sales (2)  18.3% 20.9%
        
Invested Capital September 30, 2023 December 31, 2022 
Short-term debt (1) $7,700 $93,483 
Long-term debt, less current portion  1,102,858  1,110,396 
Total debt  1,110,558  1,203,879 
Total equity  1,225,582  1,034,041 
Invested capital $2,336,140 $2,237,920 
        
Total debt / invested capital  47.5% 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 September 30,   Nine Months Ended September 30,  
  2023  2022   2023  2022  
Operating income as reported $171,441  $142,109   $513,818  $470,848  
Special items (pre-tax):              
Rationalization and asset impairment charges (2)  7,074   8,364    10,618   9,405  
Acquisition transaction costs (3)     3,068       3,068  
Amortization of step up in value of acquired inventories (4)  4,852   (353)   12,252   1,106  
Adjusted operating income (1) $183,367  $153,188   $536,688  $484,427  
As a percent of net sales  17.7 % 16.4 %  17.1 % 17.1 %
               
Net income as reported $129,343  $109,225   $388,605  $363,078  
Special items:              
Rationalization and asset impairment charges (2)  7,074   8,364    10,618   9,405  
Acquisition transaction costs (3)     3,068       3,068  
Pension settlement net gains (5)            (4,273) 
Amortization of step up in value of acquired inventories (4)  4,852   (353)   12,252   1,106  
Gain on asset disposal (6)         (1,646)    
Tax effect of Special items (7)  (1,780)  (731)   (3,908)  58  
Adjusted net income (1)  139,489   119,573    405,921   372,442  
Interest expense, net  10,809   8,210    35,708   20,867  
Income taxes as reported  32,090   28,262    101,232   93,991  
Tax effect of Special items (7)  1,780   731    3,908   (58) 
Adjusted EBIT (1) $184,168  $156,776   $546,769  $487,242  
               
Effective tax rate as reported  19.9 % 20.6 %  20.7 % 20.6 %
Net special item tax impact  (0.4)% (1.1)%  (0.1)% (0.5)%
Adjusted effective tax rate (1)  19.5 % 19.5 %  20.6 % 20.1 %
               
Diluted earnings per share as reported $2.22  $1.87   $6.67  $6.17  
Special items per share  0.18   0.17    0.30   0.16  
Adjusted diluted earnings per share (1) $2.40  $2.04   $6.97  $6.33  
               
Weighted average shares (diluted)  58,136   58,526    58,277   58,815  
 
(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 charges are primarily related to restructuring activities and impairments within International Welding. 2022 charges are 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 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 September 30,  
Return on Invested Capital    2023     2022  
Net income as reported $497,751  $437,505  
Plus: Interest expense (after-tax)  36,283   20,732  
Less: Interest income (after-tax)  3,104   1,019  
Net operating profit after taxes $530,930  $457,218  
Special Items:       
Rationalization and asset impairment charges  13,001   10,955  
Acquisition transaction costs  2,935   3,068  
Pension settlement charges (2)     42,131  
Amortization of step up in value of acquired inventories  12,253   1,379  
Gain on asset disposal  (1,646)    
Tax effect of Special items (3)  (5,159)  (26,393) 
Adjusted net operating profit after taxes (1) $552,314  $488,358  
        
Invested Capital September 30, 2023 September 30, 2022 
Short-term debt $7,700  $68,375  
Long-term debt, less current portion  1,102,858   711,250  
Total debt  1,110,558   779,625  
Total equity  1,225,582   924,228  
Invested capital $2,336,140  $1,703,853  
        
Return on invested capital as reported  22.7 % 26.8 %
Adjusted return on invested capital (1)  23.6 % 28.7 %
 
(1) Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section.
(2) Related to lump sum pension payments due to the final settlement associated with the termination of a pension plan.
(3) 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 September 30, 
 2023  2022 
OPERATING ACTIVITIES:     
Net income$129,343  $109,225 
Adjustments to reconcile Net income to Net cash provided by operating activities:     
Rationalization and asset impairment net charges (6)  7,889 
Depreciation and amortization 21,489   19,250 
Equity (earnings) loss in affiliates, net (169)  434 
Other non-cash items, net 210   (1,409)
Changes in operating assets and liabilities, net of effects from acquisitions:     
Decrease in accounts receivable 25,585   39,390 
Decrease (Increase) in inventories 51,514   (22,984)
Decrease in trade accounts payable (26,238)  (24,680)
Net change in other current assets and liabilities 27,772   11,296 
Net change in other long-term assets and liabilities (6,396)  (8,128)
NET CASH PROVIDED BY OPERATING ACTIVITIES 223,104   130,283 
      
INVESTING ACTIVITIES:     
Capital expenditures (25,907)  (17,699)
Acquisition of businesses, net of cash acquired (28)  (199)
Proceeds from sale of property, plant and equipment 704   646 
Purchase of marketable securities 468    
NET CASH USED BY INVESTING ACTIVITIES (24,763)  (17,252)
      
FINANCING ACTIVITIES:     
Payments on short-term borrowings (2,594)  (55,561)
Payments on long-term borrowings (1,019)  (1,269)
Proceeds from exercise of stock options 1,289   751 
Purchase of shares for treasury (45,355)  (26,518)
Cash dividends paid to shareholders (36,805)  (32,463)
NET CASH USED BY FINANCING ACTIVITIES (84,484)  (115,060)
      
Effect of exchange rate changes on Cash and cash equivalents 8,327   (9,460)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 122,184   (11,489)
Cash and cash equivalents at beginning of period 220,483   152,796 
Cash and cash equivalents at end of period$342,667  $141,307 
      
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
 
     Nine Months Ended September 30, 
  2023  2022 
OPERATING ACTIVITIES:      
Net income $388,605  $363,078 
Adjustments to reconcile Net income to Net cash provided by operating activities:      
Rationalization and asset impairment net charges  1,128   7,776 
Depreciation and amortization  64,701   59,009 
Equity (earnings) loss in affiliates, net  (463)  254 
Other non-cash items, net  21,890   2,413 
Changes in operating assets and liabilities, net of effects from acquisitions:      
Decrease (Increase) in accounts receivable  6,695   (64,569)
Decrease (Increase) in inventories  57,781   (135,578)
(Decrease) Increase in trade accounts payable  (24,672)  19,572 
Net change in other current assets and liabilities  43,246   32,470 
Net change in other long-term assets and liabilities  (13,031)  (12,841)
NET CASH PROVIDED BY OPERATING ACTIVITIES  545,880   271,584 
       
INVESTING ACTIVITIES:      
Capital expenditures  (66,459)  (52,301)
Acquisition of businesses, net of cash acquired  (32,685)  (22,294)
Proceeds from sale of property, plant and equipment  4,596   2,338 
Purchase of marketable securities  (6,561)   
NET CASH USED BY INVESTING ACTIVITIES  (101,109)  (72,257)
       
FINANCING ACTIVITIES:      
(Payments on) proceeds from short-term borrowings  (74,818)  9,399 
(Payments on) proceeds from long-term borrowings  (7,997)  5,600 
Proceeds from exercise of stock options  13,299   2,168 
Purchase of shares for treasury  (130,589)  (156,216)
Cash dividends paid to shareholders  (111,277)  (98,377)
NET CASH USED BY FINANCING ACTIVITIES  (311,382)  (237,426)
       
Effect of exchange rate changes on Cash and cash equivalents  12,128   (13,552)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  145,517   (51,651)
Cash and cash equivalents at beginning of period  197,150   192,958 
Cash and cash equivalents at end of period $342,667  $141,307 
       
Cash dividends paid per share $1.92  $1.68 
         


Lincoln Electric Holdings, Inc.
Segment Highlights (1)
(In thousands)
(Unaudited)
 
     Americas    International     The Harris    Corporate /       
  Welding Welding Products Group Eliminations Consolidated 
Three months ended September 30, 2023                
Net sales $665,228  $242,010 $125,976 $  $1,033,214 
Inter-segment sales  28,875   4,896  2,299  (36,070)   
Total sales $694,103  $246,906 $128,275 $(36,070) $1,033,214 
                 
Net income             $129,343 
As a percent of total sales              12.5%
                 
EBIT (1) $132,420  $22,369 $20,405 $(2,952) $172,242 
As a percent of total sales  19.1 % 9.1% 15.9%    16.7%
Special items charges (3)  4,056   7,870       11,926 
Adjusted EBIT (2) $136,476  $30,239 $20,405 $(2,952) $184,168 
As a percent of total sales  19.7 % 12.2% 15.9%    17.8%
                 
Three months ended September 30, 2022                
Net sales $585,628  $216,497 $133,115 $  $935,240 
Inter-segment sales  35,353   9,994  2,642  (47,989)   
Total sales $620,981  $226,491 $135,757 $(47,989) $935,240 
                 
Net income             $109,225 
As a percent of total sales              11.7%
                 
EBIT (1) $119,157  $16,861 $14,432 $(4,753) $145,697 
As a percent of total sales  19.2 % 7.4% 10.6%    15.6%
Special items charges (4)  (353)  8,364    3,068   11,079 
Adjusted EBIT (2) $118,804  $25,225 $14,432 $(1,685) $156,776 
As a percent of total sales  19.1 % 11.1% 10.6%    16.8%
 
(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 $3,648 and $1,204 in Americas and International Welding, respectively, and Rationalization and asset impairment net charges of $408 and $6,666 in Americas and International Welding, respectively.
(4) Special items in 2022 primarily reflect an adjustment to the amortization of step up in value of acquired inventories of $353 in Americas Welding related to an acquisition, Rationalization and asset impairment charges of 8,364 in International Welding and acquisition transaction costs of $3,068 in Corporate/Eliminations related to an acquisition.
 


Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
 
     Americas    International    The Harris    Corporate /       
  Welding Welding Products Group Eliminations Consolidated 
Nine months ended September 30, 2023                
Net sales $2,000,839  $747,829 $384,454 $  $3,133,122 
Inter-segment sales  92,043   19,941  8,063  (120,047)   
Total sales $2,092,882  $767,770 $392,517 $(120,047) $3,133,122 
                 
Net income             $388,605 
As a percent of total sales              12.4%
                 
EBIT (1) $399,002  $82,183 $58,898 $(14,538) $525,545 
As a percent of total sales  19.1 % 10.7% 15.0%    16.8%
Special items charges (3)  9,798   11,426       21,224 
Adjusted EBIT (2) $408,800  $93,609 $58,898 $(14,538) $546,769 
As a percent of total sales  19.5 % 12.2% 15.0%    17.5%
                 
Nine months ended September 30, 2022                
Net sales $1,715,342  $711,167 $403,768 $  $2,830,277 
Inter-segment sales  92,540   25,749  8,570  (126,859)   
Total sales $1,807,882  $736,916 $412,338 $(126,859) $2,830,277 
                 
Net income             $363,078 
As a percent of total sales              12.8%
                 
EBIT (1) $352,066  $87,456 $51,952 $(13,538) $477,936 
As a percent of total sales  19.5 % 11.9% 12.6%    16.9%
Special items charges (4)  (3,627)  9,865    3,068   9,306 
Adjusted EBIT (2) $348,439  $97,321 $51,952 $(10,470) $487,242 
As a percent of total sales  19.3 % 13.2% 12.6%    17.2%
 
(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 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 $408 and $10,210 in Americas and International Welding, respectively, and a 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 related to an acquisition, acquisition transaction costs of $3,068 in Corporate/Eliminations related to an acquisition, 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 $10,403 in International Welding and net gains of $998 in Americas Welding.
 


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          Foreign Net Sales 
 2022 Volume Acquisitions Price Exchange 2023  
Operating Segments                  
Americas Welding$585,628 $2,072  $72,159 $3,488 $1,881 $665,228  
International Welding 216,497  6,296   10,564  477  8,176  242,010  
The Harris Products Group 133,115  (14,919)    6,231  1,549  125,976  
Consolidated$ 935,240 $ (6,551) $ 82,723 $ 10,196 $ 11,606 $ 1,033,214  
                   
% Change                  
Americas Welding    0.4 % 12.3% 0.6% 0.3% 13.6 %
International Welding    2.9 % 4.9% 0.2% 3.8% 11.8 %
The Harris Products Group    (11.2)%   4.7% 1.2% (5.4)%
Consolidated     (0.7)%  8.8%  1.1%  1.2%  10.5 %
                     

Nine Months Ended September 30th 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 $1,715,342 $95,106  $161,355 $34,161 $(5,125) $2,000,839  
International Welding  711,167  645   23,929  16,345  (4,257)  747,829  
The Harris Products Group  403,768  (28,789)    8,204  1,271   384,454  
Consolidated $ 2,830,277 $ 66,962  $ 185,284 $ 58,710 $ (8,111) $ 3,133,122  
                    
% Change                   
Americas Welding     5.5 % 9.4% 2.0% (0.3)% 16.6 %
International Welding     0.1 % 3.4% 2.3% (0.6)% 5.2 %
The Harris Products Group     (7.1)%   2.0% 0.3 % (4.8)%
Consolidated      2.4 %  6.5%  2.1%  (0.3)%  10.7 %

 

Coordonnées