Lincoln Electric Reports Fourth Quarter and Full Year 2023 Results


Fourth Quarter 2023 Highlights

  • Net sales increase 13.7% to record $1.1 billion
     
  • Record operating income margin of 19.3% and adjusted operating income margin of 17.2%
     
  • Record EPS of $2.70 and adjusted EPS of $2.45
 
Full Year 2023 Highlights

  • Net sales increase 11.4% to record $4.2 billion
     
  • Record operating income margin and adjusted operating income margin of 17.1%
     
  • Record EPS of $9.37 and adjusted EPS of $9.41
     
  • Cash flows from operations increase 74% to record $668 million with 105% cash conversion(1)
     
  • Returned $347 million to shareholders through dividends and share repurchases


CLEVELAND, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported fourth quarter 2023 net income of $156.6 million, or diluted earnings per share (EPS) of $2.70, which includes special item after-tax net gains of $14.6 million, or $0.25 EPS.  This compares with prior year period net income of $109.1 million, or $1.87 EPS, which included special item after-tax net charges of $4.1 million.  Excluding special items, fourth quarter 2023 adjusted net income was $142 million, or $2.45 adjusted EPS.  This compares with adjusted net income of $113.2 million, or $1.94 adjusted EPS, in the prior year period.

Fourth quarter 2023 sales increased 13.7% to $1.1 billion reflecting a 2.6% increase in organic sales, a 9.8% benefit from acquisitions and 1.3% favorable foreign exchange.  Operating income for the fourth quarter 2023 was $204 million, or 19.3% of sales.  This compares with operating income of $141.5 million, or 15.2% of sales, in the prior year period.  Excluding special items, adjusted operating income was $182.1 million, or 17.2% of sales, as compared with $146.8 million, or 15.8% of sales, in the prior year period.

“I am pleased to report that we achieved record performance in 2023, reflecting strong demand for our solutions and effective execution of our Higher Standard strategy,” commented Steven B. Hedlund, President and Chief Executive Officer. “This achievement is a fitting capstone to Chris Mapes’ eleven-year tenure leading the company. We finished the year with good momentum across most end markets.” Hedlund concluded, “Looking ahead, we will continue to advance the business by focusing on our customers, bringing innovative products to market and driving operational excellence.”

Twelve Months 2023 Summary

Net income for the twelve months ended December 31, 2023 was $545.2 million, or $9.37 EPS, which includes special item after-tax net charges of $2.7 million, or $0.04 EPS. This compares with prior period net income of $472.2 million, or $8.04 EPS, which included special item after-tax net charges of $13.4 million, or $0.23 EPS. Excluding special items, adjusted net income for the twelve months ended December 31, 2023 increased 12.8% to $548 million, or $9.41 EPS, compared with $485.7 million, or $8.27 EPS, in the prior year period.

Sales increased 11.4% to $4.2 billion in the twelve months ended December 31, 2023 reflecting a 4% increase in organic sales, a 7.4% benefit from acquisitions and 0.1% favorable foreign exchange. Operating income for the twelve months ended December 31, 2023 was $717.8 million, or 17.1% of sales. This compares with operating income of $612.3 million, or 16.3% of sales, in the prior year period. Excluding special items, adjusted operating income was $718.8 million, or 17.1% of sales, as compared with $631.2 million, or 16.8% of sales, in the prior year period.

(1)Cash conversion is defined as net cash provided by operating activities less capital expenditures divided by adjusted net income.


Webcast Information

A conference call to discuss fourth quarter and full year 2023 financial results will be webcast live today, February 15, 2024, at 10:00 a.m., Eastern Time. Those interested in participating via webcast in listen-only mode can access the event here or on the Company's Investor Relations home page at https://ir.lincolnelectric.com. For participants who would like to participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available via webcast on the Company's website.

About Lincoln Electric

Lincoln Electric is the world leader in the engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment, and has a leading global position in brazing and soldering alloys. Lincoln is recognized as the Welding Expert™ for its leading materials science, software development, automation engineering, and application expertise, which advance customers’ fabrication capabilities to help them build a better world. Headquartered in Cleveland, Ohio, Lincoln operates 71 manufacturing and automation system integration locations across 21 countries and maintains a worldwide network of distributors and sales offices serving customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com.

Non-GAAP Information

Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) are non-GAAP financial measures.  Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business.  Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully.  Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly.  Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.

Forward-Looking Statements

The Company’s expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements reflect management’s current expectations and involve a number of risks and uncertainties.  Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning.  Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results.  The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; possible acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, such as the impact of the Russia-Ukraine conflict, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general.  For additional discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)        
                 
Consolidated Statements of Income 
               Fav (Unfav) to 
 Three Months Ended December 31,  Prior Year 
 2023  % of Sales    2022    % of Sales $ % 
Net sales$ 1,058,514    100.0 %$ 930,934  100.0%$ 127,580   13.7 %
Cost of goods sold  687,484    64.9 %  622,950  66.9%  (64,534)  (10.4)%
Gross profit  371,030    35.1 %  307,984  33.1%  63,046   20.5 %
Selling, general & administrative expenses  188,931    17.8 %  164,113  17.6%  (24,818)  (15.1)%
Rationalization and asset impairment charges  (21,932)   (2.1)%  2,383  0.3%  24,315   1,020.4 %
Operating income  204,031    19.3 %  141,488  15.2%  62,543   44.2 %
Interest expense, net  8,663    0.8 %  8,633  0.9%  (30)  (0.3)%
Other income  1,662    0.2 %  2,903  0.3%  (1,241)  (42.7)%
Income before income taxes  197,030    18.6 %  135,758  14.6%  61,272   45.1 %
Income taxes  40,386    3.8 %  26,612  2.9%  (13,774)  (51.8)%
Effective tax rate  20.5 %     19.6%     (0.9)%  
Net income$ 156,644    14.8 %$ 109,146  11.7%$ 47,498   43.5 %
                 
Basic earnings per share$ 2.75     $ 1.89   $ 0.86   45.5 %
Diluted earnings per share$ 2.70     $ 1.87   $ 0.83   44.4 %
Weighted average shares (basic)  57,063       57,676           
Weighted average shares (diluted)  57,911       58,459          


              Fav (Unfav) to 
 Twelve Months Ended December 31, Prior Year 
 2023  % of Sales    2022 % of Sales    $ % 
Net sales$ 4,191,636   100.0 $ 3,761,211  100.0$ 430,425   11.4 
Cost of goods sold  2,726,191   65.0   2,480,451  65.9  (245,740)  (9.9)
Gross profit  1,465,445   35.0   1,280,760  34.1  184,685   14.4 
Selling, general & administrative expenses  758,910   18.1   656,636  17.5  (102,274)  (15.6)
Rationalization and asset impairment charges  (11,314)  (0.3)  11,788  0.3  23,102   196.0 
Operating income  717,849   17.1   612,336  16.3  105,513   17.2 
Interest expense, net  44,371   1.1   29,500  0.8  (14,871)  (50.4)
Other income  13,388   0.3   9,991  0.3  3,397   34.0 
Income before income taxes  686,866   16.4   592,827  15.8  94,039   15.9 
Income taxes  141,618   3.4   120,603  3.2  (21,015)  (17.4)
Effective tax rate  20.6 %    20.3%     (0.3)%   
Net income$ 545,248   13.0 $ 472,224  12.6$ 73,024   15.5 
                
Basic earnings per share$ 9.50    $ 8.14   $ 1.36   16.7 
Diluted earnings per share$ 9.37    $ 8.04   $ 1.33   16.5 
Weighted average shares (basic)  57,364      58,030           
Weighted average shares (diluted)  58,221      58,749           


Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)    
       
Balance Sheet Highlights      
       
Selected Consolidated Balance Sheet DataDecember 31, 2023    December 31, 2022 
Cash and cash equivalents$ 393,787 $ 197,150 
Accounts receivable, net  538,830   541,529 
Inventories  562,864   665,451 
Total current assets  1,693,111   1,557,790 
Property, plant and equipment, net  575,316   544,871 
Total assets  3,377,297   3,180,546 
Trade accounts payable  325,435   352,079 
Total current liabilities  754,610   852,897 
Short-term debt (1)  2,439   93,483 
Long-term debt, less current portion  1,102,771   1,110,396 
Total equity  1,308,852   1,034,041 
       
Operating Working CapitalDecember 31, 2023 December 31, 2022 
Average operating working capital to Net sales (2)  17.1%    20.9%
       
Invested CapitalDecember 31, 2023 December 31, 2022 
Short-term debt (1)$ 2,439 $ 93,483 
Long-term debt, less current portion  1,102,771   1,110,396 
Total debt  1,105,210   1,203,879 
Total equity  1,308,852   1,034,041 
Invested capital$ 2,414,062 $ 2,237,920 
       
Total debt / invested capital  45.8%    53.8%


(1)Includes current portion of long-term debt.
(2)Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.


Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
              
Non-GAAP Financial Measures             
              
 Three Months Ended December 31,   Twelve Months Ended December 31, 
 2023  2022   2023  2022  
Operating income as reported$ 204,031  $ 141,488   $ 717,849  $ 612,336  
Special items (pre-tax):                 
Rationalization and asset impairment charges (2)  (21,932)   2,383     (11,314)   11,788  
Acquisition transaction costs (3)  —    2,935     —    6,003  
Amortization of step up in value of acquired inventories (4)  —    —     12,252    1,106  
Adjusted operating income (1)$ 182,099  $ 146,806   $ 718,787  $ 631,233  
As a percent of total sales  17.2 %  15.8 %   17.1 %  16.8 %
              
Net income as reported$ 156,644  $ 109,146   $ 545,248  $ 472,224  
Special items:                 
Rationalization and asset impairment charges (2)  (21,932)   2,383     (11,314)   11,788  
Acquisition transaction costs (3)  —    2,935     —    6,003  
Pension settlement net charges (5)  845    —     845    (4,273) 
Amortization of step up in value of acquired inventories (4)  —    —     12,252    1,106  
Gain on asset disposal (6)  —    —     (1,646)   —  
Tax effect of Special items (7)  6,445    (1,250)    2,537    (1,192) 
Adjusted net income (1)  142,002    113,214     547,922    485,656  
Interest expense, net  8,663    8,633     44,371    29,500  
Income taxes as reported  40,386    26,612     141,618    120,603  
Tax effect of Special items (7)  (6,445)   1,250     (2,537)   1,192  
Adjusted EBIT (1)$ 184,606  $ 149,709   $ 731,374  $ 636,951  
              
Effective tax rate as reported  20.5 %  19.6 %   20.6 %  20.3 %
Net special item tax impact  (1.2)%  0.1 %   (0.4)%  (0.2)%
Adjusted effective tax rate (1)  19.3 %  19.7 %   20.2 %  20.1 %
              
Diluted earnings per share as reported$ 2.70  $ 1.87   $ 9.37  $ 8.04  
Special items per share  (0.25)   0.07     0.04    0.23  
Adjusted diluted earnings per share (1)$ 2.45  $ 1.94   $ 9.41  $ 8.27  
              
Weighted average shares (diluted)  57,911    58,459     58,221    58,749  


(1)Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures.  Refer to Non-GAAP Information section.
(2)2023 gain is primarily related to the sale of a property partially offset by rationalization and asset impairment charges within International Welding. 2022 charges are primarily related to employee severance, gains or losses on the disposal of assets and other related costs and non-cash asset impairment charges.
(3)Related to acquisitions and are included in Selling, general & administrative expenses.
(4)Related to acquisitions and are included in Cost of goods sold.
(5)2023 charges related to pension settlements included in Other income. 2022 net gains primarily due to the final settlement associated with the termination of a pension plan and are included in Other income.
(6)Gain on asset disposal and included in Other income.
(7)Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate.  The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.

Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
       
Non-GAAP Financial Measures      
       
 Twelve Months Ended December 31,  
Return on Invested Capital2023     2022  
Net income as reported$ 545,248  $ 472,224  
Plus: Interest expense (after-tax)  38,050    23,276  
Less: Interest income (after-tax)  5,033    1,202  
Net operating profit after taxes$ 578,265  $ 494,298  
Special items:      
Rationalization and asset impairment charges  (11,314)   11,788  
Acquisition transaction costs  —    6,003  
Pension settlement net charges  845    (4,273) 
Amortization of step up in value of acquired inventories  12,252    1,106  
Gain on asset disposal  (1,646)   —  
Tax effect of Special items (2)  2,537    (1,192) 
Adjusted net operating profit after taxes (1)$ 580,939  $ 507,730  
       
Invested CapitalDecember 31, 2023 December 31, 2022 
Short-term debt$ 2,439  $ 93,483  
Long-term debt, less current portion  1,102,771    1,110,396  
Total debt  1,105,210    1,203,879  
Total equity  1,308,852    1,034,041  
Invested capital$ 2,414,062  $ 2,237,920  
       
Return on invested capital as reported 24.0 %   22.1 %  
Adjusted return on invested capital (1) 24.1 %   22.7 %  

             

(1)Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures.  Refer to Non-GAAP Information section.
(2)Includes the net tax impact of Special items recorded during the respective periods.
The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate.  The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.


Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
      
Condensed Consolidated Statements of Cash Flows     
      
 Three Months Ended December 31, 
 2023  2022 
OPERATING ACTIVITIES:       
Net income$ 156,644  $ 109,146 
Adjustments to reconcile Net income to Net cash provided by operating activities:       
Rationalization and asset impairment net charges  3,651    324 
Depreciation and amortization  21,969    19,050 
Gain on sale of property  (36,187)   — 
Other non-cash items, net  (33,586)   (13,624)
Changes in operating assets and liabilities, net of effects from acquisitions:       
Decrease (increase) in accounts receivable  8,285    (441)
Decrease in inventories  64,313    54,390 
(Decrease) in trade accounts payable  (7,356)   (2,720)
Net change in other current assets and liabilities  (68,798)   (58,966)
Net change in other long-term assets and liabilities  12,727    4,644 
NET CASH PROVIDED BY OPERATING ACTIVITIES  121,662    111,803 
      
INVESTING ACTIVITIES:       
Capital expenditures  (24,528)   (19,582)
Acquisition of businesses, net of cash acquired  —    (414,004)
Proceeds from sale of property, plant and equipment  44,898    994 
Other investing activities  6,010    159 
NET CASH PROVIDED BY (USED BY) INVESTING ACTIVITIES  26,380    (432,433)
      
FINANCING ACTIVITIES:       
(Payments on) proceeds from short-term borrowings  (5,057)   24,955 
(Payments on) proceeds from long-term borrowings  (112)   399,843 
Proceeds from exercise of stock options  9,068    4,217 
Purchase of shares for treasury  (68,176)   (25,077)
Cash dividends paid to shareholders  (36,733)   (32,347)
Other financing activities  —    (441)
NET CASH (USED BY) PROVIDED BY FINANCING ACTIVITIES  (101,010)   371,150 
      
Effect of exchange rate changes on Cash and cash equivalents  4,088    5,323 
INCREASE IN CASH AND CASH EQUIVALENTS  51,120    55,843 
Cash and cash equivalents at beginning of period  342,667    141,307 
Cash and cash equivalents at end of period$ 393,787  $ 197,150 
      
Cash dividends paid per share$ 0.64  $ 0.56 


Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
      
Condensed Consolidated Statements of Cash Flows     
      
 Year Ended December 31, 
 2023  2022 
OPERATING ACTIVITIES:       
Net income$ 545,248  $ 472,224 
Adjustments to reconcile Net income to Net cash provided by operating activities:       
Rationalization and asset impairment net charges  4,779    8,100 
Depreciation and amortization  86,670    78,059 
Gain on sale of property  (36,187)   — 
Other non-cash items, net  (12,159)   (10,958)
Changes in operating assets and liabilities, net of effects from acquisitions:       
Decrease (increase) in accounts receivable  14,980    (65,010)
Decrease (increase) in inventories  122,094    (81,188)
(Decrease) increase in trade accounts payable  (32,028)   16,852 
Net change in other current assets and liabilities  (25,552)   (26,496)
Net change in other long-term assets and liabilities  (303)   (8,197)
NET CASH PROVIDED BY OPERATING ACTIVITIES  667,542    383,386 
      
INVESTING ACTIVITIES:       
Capital expenditures  (90,987)   (71,883)
Acquisition of businesses, net of cash acquired  (32,685)   (436,298)
Proceeds from sale of property, plant and equipment  49,494    3,331 
Other investing activities  (551)   159 
NET CASH USED BY INVESTING ACTIVITIES  (74,729)   (504,691)
      
FINANCING ACTIVITIES:       
(Payments on) proceeds from short-term borrowings  (79,873)   34,351 
(Payments on) proceeds from long-term borrowings  (8,109)   405,444 
Proceeds from exercise of stock options  22,365    6,385 
Purchase of shares for treasury  (198,765)   (181,293)
Cash dividends paid to shareholders  (148,010)   (130,724)
Other financing activities  —    (438)
NET CASH (USED BY) PROVIDED BY FINANCING ACTIVITIES  (412,392)   133,725 
      
Effect of exchange rate changes on Cash and cash equivalents  16,216    (8,228)
INCREASE IN CASH AND CASH EQUIVALENTS  196,637    4,192 
Cash and cash equivalents at beginning of period  197,150    192,958 
Cash and cash equivalents at end of period$ 393,787  $ 197,150 
      
Cash dividends paid per share$ 2.56  $ 2.24 

Lincoln Electric Holdings, Inc.
Segment Highlights (1)
(In thousands)
(Unaudited)
                
 Americas    International     The Harris    Corporate /       
 Welding Welding Products Group Eliminations Consolidated 
Three months ended December 31, 2023                    
Net sales$ 654,707 $ 292,177  $ 111,630 $ —  $ 1,058,514  
Inter-segment sales  35,493   11,557    2,578   (49,628)   —  
Total sales$ 690,200 $ 303,734  $ 114,208 $ (49,628) $ 1,058,514  
                
Net income               $ 156,644  
As a percent of total sales                 14.8 %
                
EBIT (1)$ 129,409 $ 64,035  $ 15,246 $ (2,997) $ 205,693  
As a percent of total sales  18.7%    21.1 %    13.3%       19.4 %
Special items charges (gain) (3)  60   (21,147)   —   —    (21,087) 
Adjusted EBIT (2)$ 129,469 $ 42,888  $ 15,246 $ (2,997) $ 184,606  
As a percent of total sales  18.8%    14.1 %    13.3%       17.4 %
                
Three months ended December 31, 2022                    
Net sales$ 573,592 $ 243,114  $ 114,228 $ —  $ 930,934  
Inter-segment sales  29,479   5,754    2,470   (37,703)   —  
Total sales$ 603,071 $ 248,868  $ 116,698 $ (37,703) $ 930,934  
                
Net income               $ 109,146  
As a percent of total sales                 11.7 %
                
EBIT (1)$ 113,813 $ 21,020  $ 12,056 $ (2,498) $ 144,391  
As a percent of total sales  18.9%    8.4 %    10.3%       15.5 %
Special items charges (4)  567   1,816    —   2,935    5,318  
Adjusted EBIT (2)$ 114,380 $ 22,836  $ 12,056 $ 437  $ 149,709  
As a percent of total sales  19.0%    9.2 %    10.3%       16.1 %


(1)EBIT is defined as Operating income plus Other income.
(2)The primary profit measure used by management to assess segment performance is adjusted EBIT.  EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.
(3)Special items in 2023 primarily reflect a net gain of $21,992 related to the sale of a property, partially offset by rationalization and asset impairment charges, and pension settlement charges of $845 in International Welding.
(4)Special items in 2022 primarily reflect Rationalization and asset impairment charges of $1,816 and $567 in International Welding and Americas Welding, respectively, and acquisition transaction costs of $2,935 in Corporate/Eliminations.

 Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
          
                
 Americas    International    The Harris    Corporate /       
 Welding Welding Products Group Eliminations Consolidated 
Year ended December 31, 2023                    
Net sales$ 2,655,546  $ 1,040,006  $ 496,084 $ —  $ 4,191,636 
Inter-segment sales  127,536    31,498    10,641   (169,675)   — 
Total sales$ 2,783,082  $ 1,071,504  $ 506,725 $ (169,675) $ 4,191,636 
                
Net income               $ 545,248 
As a percent of total sales                 13.0%
                
EBIT (1)$ 528,411  $ 146,218  $ 74,144 $ (17,536) $ 731,237 
As a percent of total sales  19.0 %    13.6 %    14.6%       17.4%
Special items charges (gain) (3)  9,858    (9,721)   —   —    137 
Adjusted EBIT (2)$ 538,269  $ 136,497  $ 74,144 $ (17,536) $ 731,374 
As a percent of total sales  19.3 %    12.7 %    14.6%       17.4%
                
Year ended December 31, 2022                    
Net sales$ 2,288,934  $ 954,281  $ 517,996 $ —  $ 3,761,211 
Inter-segment sales  122,019    31,503    11,040   (164,562)   — 
Total sales$ 2,410,953  $ 985,784  $ 529,036 $ (164,562) $ 3,761,211 
                
Net income               $ 472,224 
As a percent of total sales                 12.6%
                
EBIT (1)$ 465,879  $ 108,476  $ 64,008 $ (16,036) $ 622,327 
As a percent of total sales  19.3 %    11.0 %    12.1%       16.5%
Special items (gain) charges (4)  (3,060)   11,681    —   6,003    14,624 
Adjusted EBIT (2)$ 462,819  $ 120,157  $ 64,008 $ (10,033) $ 636,951 
As a percent of total sales  19.2 %    12.2 %    12.1%       16.9%


(1)EBIT is defined as Operating income plus Other income (expense).
(2)The primary profit measure used by management to assess segment performance is adjusted EBIT.  EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.
(3)Special items in 2023 primarily reflect amortization of step up in value of acquired inventories of $9,390 and $2,862 in Americas and International Welding, respectively, Rationalization and asset impairment net charges of $468 and net gains of $11,782 in Americas and International Welding, respectively, pension settlement charges of $845 in International Welding and gain on asset disposal of $1,646 in International Welding.
(4)Special items in 2022 primarily reflect amortization of step up in value of acquired inventories of $1,106 in Americas Welding, acquisition transaction costs of $6,003 in Corporate/Eliminations and a $3,735 net gain related to the final settlement associated with the termination of a pension plan in Americas Welding. Special items in 2022 also include Rationalization and asset impairment charges of $11,681 in International Welding and net gains of $431 in Americas Welding.


Lincoln Electric Holdings, Inc.
Change in Net Sales by Segment
(In thousands)
(Unaudited)
                   
 Three Months Ended December 31st Change in Net Sales by Segment                  
       Change in Net Sales due to:          
 Net Sales          Foreign Net Sales 
 2022 Volume Acquisitions Price Exchange 2023  
Operating Segments                        
Americas Welding$          573,592 $ 14,754  $ 61,138 $ 2,964  $ 2,259 $          654,707  
International Welding  243,114   11,874    30,149   (1,654)   8,694      292,177  
The Harris Products Group  114,228   (7,904)   —   4,126    1,180   111,630  
Consolidated$ 930,934 $ 18,724  $ 91,287 $ 5,436  $ 12,133 $ 1,058,514  
                   
% Change                        
Americas Welding     2.6 %  10.7%  0.5 %  0.4%  14.1 %
International Welding     4.9 %  12.4%  (0.7)%  3.6%  20.2 %
The Harris Products Group     (6.9)%  —   3.6 %  1.0%  (2.3)%
Consolidated     2.0 %  9.8%  0.6 %  1.3%  13.7 %


Twelve Months Ended December 31st Change in Net Sales by Segment
                   
       Change in Net Sales due to:          
 Net Sales          Foreign Net Sales 
 2022 Volume Acquisitions Price Exchange 2023  
Operating Segments                        
Americas Welding$ 2,288,934 $ 109,860  $ 222,493 $ 37,125 $ (2,866) $ 2,655,546  
International Welding  954,281   12,519    54,078   14,691   4,437    1,040,006  
The Harris Products Group  517,996   (36,693)   —   12,330   2,451    496,084  
Consolidated$ 3,761,211 $ 85,686  $ 276,571 $ 64,146 $ 4,022  $ 4,191,636  
                   
% Change                        
Americas Welding     4.8 %  9.7%  1.6%  (0.1)%  16.0 %
International Welding     1.3 %  5.7%  1.5%  0.5 %  9.0 %
The Harris Products Group     (7.1)%  —   2.4%  0.5 %  (4.2)%
Consolidated     2.3 %  7.4%  1.7%  0.1 %  11.4 %

 

Coordonnées