We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lincoln Electric Holdings Inc | NASDAQ:LECO | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.20 | -0.09% | 219.33 | 215.00 | 227.24 | 222.60 | 217.49 | 219.25 | 403,850 | 23:38:04 |
Ohio | 34-1860551 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
Item 2.02 | Results of Operations and Financial Condition. | |
On February 23, 2016, Lincoln Electric Holdings, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended December 31, 2015. A copy of the Company’s press release issued on February 23, 2016 is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release is also available through the Company’s website at www.lincolnelectric.com. The information in this Current Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. | ||
Item 9.01 | Financial Statements and Exhibits. | |
(d) Exhibits | ||
99.1 The Company’s press release dated February 23, 2016. |
LINCOLN ELECTRIC HOLDINGS, INC. | ||
/s/ Vincent K. Petrella | ||
Vincent K. Petrella | ||
Executive Vice President, Chief Financial Officer and Treasurer | ||
(principal financial officer) | ||
February 23, 2016 |
Exhibit No. | Exhibit | ||
99.1 | The Company’s press release dated February 23, 2016. | ||
Fourth Quarter and Full Year 2015 Key Metric Highlights |
§ Q4 operating income margin: 13.8% of sales, 15.1% on an adjusted basis |
§ FY2015 operating income margin of 7.2% of sales, 14.7% on an adjusted basis |
§ Strong operational execution with a 21.1% ROIC and 17.1% average operating working capital ratio |
§ FY2015 cash flows from operations of $311 million with 100% cash conversion of adjusted net income (1) |
§ Returned a record $486 million to shareholders in FY2015 through share repurchases and dividends |
(1) | Cash conversion is defined as Net cash provided by operating activities less Capital expenditures divided by Adjusted net income. |
Three months ended December 31, | Fav (Unfav) to Prior Year | ||||||||||||||||||||
2015 | % of Sales | 2014 | % of Sales | $ | % | ||||||||||||||||
Net sales | $ | 567,985 | 100.0 | % | $ | 683,954 | 100.0 | % | $ | (115,969 | ) | (17.0 | %) | ||||||||
Cost of goods sold (1) | 371,906 | 65.5 | % | 452,869 | 66.2 | % | 80,963 | 17.9 | % | ||||||||||||
Gross profit | 196,079 | 34.5 | % | 231,085 | 33.8 | % | (35,006 | ) | (15.1 | %) | |||||||||||
Selling, general & administrative expenses | 110,803 | 19.5 | % | 126,002 | 18.4 | % | 15,199 | 12.1 | % | ||||||||||||
Rationalization and asset impairment charges | 434 | 0.1 | % | 166 | — | (268 | ) | (161.4 | %) | ||||||||||||
Pension settlement charges | 6,407 | 1.1 | % | — | — | (6,407 | ) | (100.0 | %) | ||||||||||||
Operating income | 78,435 | 13.8 | % | 104,917 | 15.3 | % | (26,482 | ) | (25.2 | %) | |||||||||||
Interest income | 691 | 0.1 | % | 628 | 0.1 | % | 63 | 10.0 | % | ||||||||||||
Equity earnings in affiliates | 877 | 0.2 | % | 1,104 | 0.2 | % | (227 | ) | (20.6 | %) | |||||||||||
Other income | 959 | 0.2 | % | 791 | 0.1 | % | 168 | 21.2 | % | ||||||||||||
Interest expense (2) | (9,790 | ) | (1.7 | %) | (6,704 | ) | (1.0 | %) | (3,086 | ) | (46.0 | %) | |||||||||
Income before income taxes | 71,172 | 12.5 | % | 100,736 | 14.7 | % | (29,564 | ) | (29.3 | %) | |||||||||||
Income taxes | 22,473 | 4.0 | % | 25,401 | 3.7 | % | 2,928 | 11.5 | % | ||||||||||||
Effective tax rate | 31.6 | % | 25.2 | % | (6.4 | %) | |||||||||||||||
Net income including non-controlling interests | 48,699 | 8.6 | % | 75,335 | 11.0 | % | (26,636 | ) | (35.4 | %) | |||||||||||
Non-controlling interests in subsidiaries’ earnings (loss) | 7 | — | 123 | — | (116 | ) | (94.3 | %) | |||||||||||||
Net income | $ | 48,692 | 8.6 | % | $ | 75,212 | 11.0 | % | $ | (26,520 | ) | (35.3 | %) | ||||||||
Basic earnings per share | $ | 0.68 | $ | 0.97 | $ | (0.29 | ) | (29.9 | %) | ||||||||||||
Diluted earnings per share | $ | 0.68 | $ | 0.96 | $ | (0.28 | ) | (29.2 | %) | ||||||||||||
Weighted average shares (basic) | 71,446 | 77,403 | |||||||||||||||||||
Weighted average shares (diluted) | 72,121 | 78,280 | |||||||||||||||||||
(1) | Cost of goods sold during the three months ended December 31, 2015 includes a charge of $708 representing the impact of Venezuelan remeasurement losses related to the adoption of a new foreign exchange mechanism. |
(2) | Interest expense during the three months ended December 31, 2015 and December 31, 2014 includes adjustments to the consideration expected to be paid to acquire additional ownership interests of a majority-owned subsidiary of $6,436 and $5,952, respectively. |
Twelve months ended December 31, | Fav (Unfav) to Prior Year | ||||||||||||||||||||
2015 | % of Sales | 2014 | % of Sales | $ | % | ||||||||||||||||
Net sales | $ | 2,535,791 | 100.0 | % | $ | 2,813,324 | 100.0 | % | $ | (277,533 | ) | (9.9 | %) | ||||||||
Cost of goods sold (1) | 1,694,647 | 66.8 | % | 1,864,027 | 66.3 | % | 169,380 | 9.1 | % | ||||||||||||
Gross profit | 841,144 | 33.2 | % | 949,297 | 33.7 | % | (108,153 | ) | (11.4 | %) | |||||||||||
Selling, general & administrative expenses (2) | 496,748 | 19.6 | % | 545,497 | 19.4 | % | 48,749 | 8.9 | % | ||||||||||||
Rationalization and asset impairment charges | 19,958 | 0.8 | % | 30,053 | 1.1 | % | 10,095 | 33.6 | % | ||||||||||||
Pension settlement charges | 142,738 | 5.6 | % | — | — | (142,738 | ) | (100.0 | %) | ||||||||||||
Operating income | 181,700 | 7.2 | % | 373,747 | 13.3 | % | (192,047 | ) | (51.4 | %) | |||||||||||
Interest income | 2,714 | 0.1 | % | 3,093 | 0.1 | % | (379 | ) | (12.3 | %) | |||||||||||
Equity earnings in affiliates | 3,015 | 0.1 | % | 5,412 | 0.2 | % | (2,397 | ) | (44.3 | %) | |||||||||||
Other income | 4,182 | 0.2 | % | 3,995 | 0.1 | % | 187 | 4.7 | % | ||||||||||||
Interest expense (3) | (21,824 | ) | (0.9 | %) | (10,434 | ) | (0.4 | %) | (11,390 | ) | (109.2 | %) | |||||||||
Income before income taxes | 169,787 | 6.7 | % | 375,813 | 13.4 | % | (206,026 | ) | (54.8 | %) | |||||||||||
Income taxes | 42,375 | 1.7 | % | 121,933 | 4.3 | % | 79,558 | 65.2 | % | ||||||||||||
Effective tax rate | 25.0 | % | 32.4 | % | 7.4 | % | |||||||||||||||
Net income including non-controlling interests | 127,412 | 5.0 | % | 253,880 | 9.0 | % | (126,468 | ) | (49.8 | %) | |||||||||||
Non-controlling interests in subsidiaries’ earnings (loss) | (66 | ) | — | (806 | ) | — | 740 | 91.8 | % | ||||||||||||
Net income | $ | 127,478 | 5.0 | % | $ | 254,686 | 9.1 | % | $ | (127,208 | ) | (49.9 | %) | ||||||||
Basic earnings per share | $ | 1.72 | $ | 3.22 | $ | (1.50 | ) | (46.6 | %) | ||||||||||||
Diluted earnings per share | $ | 1.70 | $ | 3.18 | $ | (1.48 | ) | (46.5 | %) | ||||||||||||
Weighted average shares (basic) | 74,111 | 79,185 | |||||||||||||||||||
Weighted average shares (diluted) | 74,854 | 80,096 | |||||||||||||||||||
(1) | Cost of goods sold during 2015 and 2014 includes charges of $22,880 and $3,468, respectively, representing the impact of Venezuelan remeasurement losses related to the adoption of new foreign exchange mechanisms. |
(2) | Selling, general & administrative expenses during 2015 and 2014 include charges of $4,334 and $17,665, respectively, representing the impact of Venezuelan remeasurement losses related to the adoption of new foreign exchange mechanisms. |
(3) | Interest expense during the 2015 and 2014 includes adjustments to the consideration expected to be paid to acquire additional ownership interests of a majority-owned subsidiary of $12,142 and $8,244, respectively. |
Selected Consolidated Balance Sheet Data | December 31, 2015 | December 31, 2014 | ||||||
Cash and cash equivalents | $ | 304,183 | $ | 278,379 | ||||
Total current assets | 935,995 | 1,096,202 | ||||||
Property, plant and equipment, net | 411,323 | 438,746 | ||||||
Total assets | 1,784,171 | 1,939,215 | ||||||
Total current liabilities | 370,122 | 492,395 | ||||||
Short-term debt (1) | 4,278 | 68,166 | ||||||
Long-term debt | 350,347 | 2,488 | ||||||
Total equity | 932,448 | 1,285,781 | ||||||
Net Operating Working Capital | December 31, 2015 | December 31, 2014 | ||||||
Accounts receivable | $ | 264,715 | $ | 337,664 | ||||
Inventory | 275,930 | 341,057 | ||||||
Trade accounts payable | 152,620 | 209,745 | ||||||
Net operating working capital | $ | 388,025 | $ | 468,976 | ||||
Net operating working capital to net sales (2) | 17.1 | % | 17.1 | % | ||||
Invested Capital | December 31, 2015 | December 31, 2014 | ||||||
Short-term debt (1) | $ | 4,278 | $ | 68,166 | ||||
Long-term debt | 350,347 | 2,488 | ||||||
Total debt | 354,625 | 70,654 | ||||||
Total equity | 932,448 | 1,285,781 | ||||||
Invested capital | $ | 1,287,073 | $ | 1,356,435 | ||||
Total debt / invested capital | 27.6 | % | 5.2 | % |
(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. |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating income as reported | $ | 78,435 | $ | 104,917 | $ | 181,700 | $ | 373,747 | ||||||||
Special items (pre-tax): | ||||||||||||||||
Rationalization and asset impairment charges (1) | 434 | 166 | 19,958 | 30,053 | ||||||||||||
Venezuela foreign exchange losses (2) | 708 | — | 27,214 | 21,133 | ||||||||||||
Pension settlement charges (3) | 6,407 | — | 142,738 | — | ||||||||||||
Adjusted operating income (4) | $ | 85,984 | $ | 105,083 | $ | 371,610 | $ | 424,933 | ||||||||
As a percent of total sales | 15.1 | % | 15.4 | % | 14.7 | % | 15.1 | % | ||||||||
Net income as reported | $ | 48,692 | $ | 75,212 | $ | 127,478 | $ | 254,686 | ||||||||
Special items (after-tax): | ||||||||||||||||
Rationalization and asset impairment charges (1) | 450 | 167 | 18,182 | 30,914 | ||||||||||||
Venezuela foreign exchange losses (2) | 708 | — | 27,214 | 21,133 | ||||||||||||
Pension settlement charges (3) | 3,969 | — | 87,310 | — | ||||||||||||
Special items attributable to non-controlling interests | — | — | — | (805 | ) | |||||||||||
Adjusted net income (4) | $ | 53,819 | $ | 75,379 | $ | 260,184 | $ | 305,928 | ||||||||
Diluted earnings per share as reported | $ | 0.68 | $ | 0.96 | $ | 1.70 | $ | 3.18 | ||||||||
Special items | 0.07 | — | 1.78 | 0.64 | ||||||||||||
Adjusted diluted earnings per share (4) | $ | 0.75 | $ | 0.96 | $ | 3.48 | $ | 3.82 | ||||||||
Weighted average shares (diluted) | 72,121 | 78,280 | 74,854 | 80,096 | ||||||||||||
Return on Invested Capital | 2015 | 2014 | ||||||||||||||
Adjusted net income | $ | 260,184 | $ | 305,928 | ||||||||||||
Plus: Interest expense (after-tax) | 13,469 | 6,439 | ||||||||||||||
Less: Interest income (after-tax) | 1,675 | 1,909 | ||||||||||||||
Net operating profit after taxes | 271,978 | 310,458 | ||||||||||||||
Invested capital | 1,287,073 | 1,356,435 | ||||||||||||||
Return on invested capital (4)(5) | 21.1 | % | 22.9 | % |
(1) | The three and twelve months ended December 31, 2015 and 2014 include net charges primarily related to severance and other related costs. The twelve months ended December 31, 2015 also include long-lived asset and goodwill impairment charges. Rationalization charges in 2014 are partially offset by gains related to the sale of assets at rationalized operations. |
(2) | The three and twelve months ended December 31, 2015 and twelve months ended December 31, 2014 represent the impacts of Venezuelan remeasurement losses related to the adoption of new foreign exchange mechanisms. |
(3) | The three and twelve months ended December 31, 2015 include pension settlement charges primarily related to the purchase of a group annuity contract. |
(4) | Adjusted operating income, Adjusted net income, Adjusted diluted earnings per share and Return on invested capital 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. |
(5) | Return on invested capital is defined as rolling 12 months of Adjusted net income excluding tax-effected interest income and expense divided by invested capital. |
Three months ended December 31, | ||||||||
2015 | 2014 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 48,692 | $ | 75,212 | ||||
Non-controlling interests in subsidiaries’ income | 7 | 123 | ||||||
Net income including non-controlling interests | 48,699 | 75,335 | ||||||
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ||||||||
Rationalization and asset impairment charges | 149 | 127 | ||||||
Depreciation and amortization | 16,110 | 16,590 | ||||||
Equity (earnings) loss in affiliates, net | (278 | ) | 53 | |||||
Pension expense and settlement charges | 10,967 | 2,761 | ||||||
Pension contributions and payments | (1,426 | ) | (1,429 | ) | ||||
Other non-cash items, net | 5,469 | 14,357 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Decrease in accounts receivable | 42,080 | 28,264 | ||||||
Decrease in inventories | 28,243 | 5,435 | ||||||
(Decrease) increase in trade accounts payable | (12,282 | ) | 13,669 | |||||
Net change in other current assets and liabilities 1 | (67,467 | ) | (24,954 | ) | ||||
Net change in other long-term assets and liabilities | 5,158 | 3,441 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 75,422 | 133,649 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (10,320 | ) | (17,560 | ) | ||||
Acquisition of businesses, net of cash acquired | (3,194 | ) | (23,338 | ) | ||||
Proceeds from sale of property, plant and equipment | 137 | 411 | ||||||
NET CASH USED BY INVESTING ACTIVITIES | (13,377 | ) | (40,487 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Net change in borrowings | 2,186 | (17,783 | ) | |||||
Proceeds from exercise of stock options | 1,396 | 3,171 | ||||||
Excess tax benefits from stock-based compensation | 487 | 2,606 | ||||||
Purchase of shares for treasury | (101,690 | ) | (57,775 | ) | ||||
Cash dividends paid to shareholders | (21,026 | ) | (17,866 | ) | ||||
Other financing activities | 18 | — | ||||||
NET CASH USED BY FINANCING ACTIVITIES | (118,629 | ) | (87,647 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (3,578 | ) | (6,659 | ) | ||||
DECREASE IN CASH AND CASH EQUIVALENTS | (60,162 | ) | (1,144 | ) | ||||
Cash and cash equivalents at beginning of period | 364,345 | 279,523 | ||||||
Cash and cash equivalents at end of period | $ | 304,183 | $ | 278,379 | ||||
Cash dividends paid per share | $ | 0.29 | $ | 0.23 |
Twelve months ended December 31, | ||||||||
2015 | 2014 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 127,478 | $ | 254,686 | ||||
Non-controlling interests in subsidiaries’ loss | (66 | ) | (806 | ) | ||||
Net income including non-controlling interests | 127,412 | 253,880 | ||||||
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ||||||||
Rationalization and asset impairment charges | 6,269 | 29,574 | ||||||
Depreciation and amortization | 64,007 | 69,607 | ||||||
Equity earnings in affiliates, net | (530 | ) | (1,848 | ) | ||||
Pension expense and settlement charges | 162,815 | 12,395 | ||||||
Pension contributions and payments 1 | (53,547 | ) | (36,072 | ) | ||||
Other non-cash items, net | (46,838 | ) | 44,398 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Decrease in accounts receivable | 56,741 | 5,876 | ||||||
Decrease (increase) in inventories | 56,067 | (5,718 | ) | |||||
(Decrease) increase in trade accounts payable | (46,911 | ) | 2,135 | |||||
Net change in other current assets and liabilities 2 | (20,435 | ) | 28,345 | |||||
Net change in other long-term assets and liabilities | 5,808 | (870 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 310,858 | 401,702 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (50,507 | ) | (72,990 | ) | ||||
Acquisition of businesses, net of cash acquired | (37,076 | ) | (24,230 | ) | ||||
Proceeds from sale of property, plant and equipment | 2,310 | 17,457 | ||||||
Other investing activities | (79 | ) | 778 | |||||
NET CASH USED BY INVESTING ACTIVITIES | (85,352 | ) | (78,985 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Net change in borrowings | 316,606 | 53,331 | ||||||
Proceeds from exercise of stock options | 5,996 | 9,116 | ||||||
Excess tax benefits from stock-based compensation | 1,974 | 5,967 | ||||||
Purchase of shares for treasury | (399,494 | ) | (307,178 | ) | ||||
Cash dividends paid to shareholders | (86,968 | ) | (73,261 | ) | ||||
Transactions with non-controlling interests | (8,022 | ) | (2,330 | ) | ||||
NET CASH USED BY FINANCING ACTIVITIES | (169,908 | ) | (314,355 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (29,794 | ) | (29,808 | ) | ||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 25,804 | (21,446 | ) | |||||
Cash and cash equivalents at beginning of period | 278,379 | 299,825 | ||||||
Cash and cash equivalents at end of period | $ | 304,183 | $ | 278,379 | ||||
Cash dividends paid per share | $ | 1.16 | $ | 0.92 |
North America Welding | Europe Welding | Asia Pacific Welding | South America Welding | The Harris Products Group | Corporate / Eliminations | Consolidated | ||||||||||||||||||||||
Three months ended December 31, 2015 | ||||||||||||||||||||||||||||
Net sales | $ | 373,878 | $ | 76,909 | $ | 42,817 | $ | 14,950 | $ | 59,431 | $ | — | $ | 567,985 | ||||||||||||||
Inter-segment sales | 20,973 | 3,235 | 1,482 | 20 | 2,278 | (27,988 | ) | — | ||||||||||||||||||||
Total | $ | 394,851 | $ | 80,144 | $ | 44,299 | $ | 14,970 | $ | 61,709 | $ | (27,988 | ) | $ | 567,985 | |||||||||||||
EBIT (1) | $ | 71,972 | $ | 4,751 | $ | (474 | ) | $ | (1,512 | ) | $ | 5,661 | $ | (127 | ) | $ | 80,271 | |||||||||||
As a percent of total sales | 18.2 | % | 5.9 | % | (1.1 | %) | (10.1 | %) | 9.2 | % | 14.1 | % | ||||||||||||||||
Special items charge (gain) (2) | $ | 6,353 | $ | — | $ | 488 | $ | 708 | $ | — | $ | — | $ | 7,549 | ||||||||||||||
EBIT, as adjusted (4) | $ | 78,325 | $ | 4,751 | $ | 14 | $ | (804 | ) | $ | 5,661 | $ | (127 | ) | $ | 87,820 | ||||||||||||
As a percent of total sales | 19.8 | % | 5.9 | % | — | (5.4 | %) | 9.2 | % | 15.5 | % | |||||||||||||||||
Three months ended December 31, 2014 | ||||||||||||||||||||||||||||
Net sales | $ | 429,907 | $ | 97,288 | $ | 58,113 | $ | 32,689 | $ | 65,957 | $ | — | $ | 683,954 | ||||||||||||||
Inter-segment sales | 28,064 | 3,699 | 3,176 | 71 | 1,821 | (36,831 | ) | — | ||||||||||||||||||||
Total | $ | 457,971 | $ | 100,987 | $ | 61,289 | $ | 32,760 | $ | 67,778 | $ | (36,831 | ) | $ | 683,954 | |||||||||||||
EBIT (1) | $ | 88,456 | $ | 9,429 | $ | 1,715 | $ | (217 | ) | $ | 6,380 | $ | 1,049 | $ | 106,812 | |||||||||||||
As a percent of total sales | 19.3 | % | 9.3 | % | 2.8 | % | (0.7 | %) | 9.4 | % | 15.6 | % | ||||||||||||||||
Special items charge (gain) (3) | $ | — | $ | (19 | ) | $ | 185 | $ | — | $ | — | $ | — | $ | 166 | |||||||||||||
EBIT, as adjusted (4) | $ | 88,456 | $ | 9,410 | $ | 1,900 | $ | (217 | ) | $ | 6,380 | $ | 1,049 | $ | 106,978 | |||||||||||||
As a percent of total sales | 19.3 | % | 9.3 | % | 3.1 | % | (0.7 | %) | 9.4 | % | 15.6 | % | ||||||||||||||||
Twelve months ended December 31, 2015 | ||||||||||||||||||||||||||||
Net sales | $ | 1,610,357 | $ | 336,824 | $ | 186,615 | $ | 138,014 | $ | 263,981 | $ | — | $ | 2,535,791 | ||||||||||||||
Inter-segment sales | 100,770 | 15,922 | 10,510 | 174 | 9,312 | (136,688 | ) | — | ||||||||||||||||||||
Total | $ | 1,711,127 | $ | 352,746 | $ | 197,125 | $ | 138,188 | $ | 273,293 | $ | (136,688 | ) | $ | 2,535,791 | |||||||||||||
EBIT (1) | $ | 150,989 | $ | 29,810 | $ | 1,960 | $ | (21,645 | ) | $ | 27,882 | $ | (99 | ) | $ | 188,897 | ||||||||||||
As a percent of total sales | 8.8 | % | 8.5 | % | 1.0 | % | (15.7 | %) | 10.2 | % | 7.4 | % | ||||||||||||||||
Special items charge (gain) (2) | $ | 155,757 | $ | 1,507 | $ | 5,432 | $ | 27,214 | $ | — | $ | — | $ | 189,910 | ||||||||||||||
EBIT, as adjusted (4) | $ | 306,746 | $ | 31,317 | $ | 7,392 | $ | 5,569 | $ | 27,882 | $ | (99 | ) | $ | 378,807 | |||||||||||||
As a percent of total sales | 17.9 | % | 8.9 | % | 3.7 | % | 4.0 | % | 10.2 | % | 14.9 | % | ||||||||||||||||
Twelve months ended December 31, 2014 | ||||||||||||||||||||||||||||
Net sales | $ | 1,700,924 | $ | 425,775 | $ | 243,800 | $ | 148,595 | $ | 294,230 | $ | — | $ | 2,813,324 | ||||||||||||||
Inter-segment sales | 124,732 | 19,586 | 14,820 | 144 | 8,210 | (167,492 | ) | — | ||||||||||||||||||||
Total | $ | 1,825,656 | $ | 445,361 | $ | 258,620 | $ | 148,739 | $ | 302,440 | $ | (167,492 | ) | $ | 2,813,324 | |||||||||||||
EBIT (1) | $ | 335,533 | $ | 47,918 | $ | (27,314 | ) | $ | (5,762 | ) | $ | 28,563 | $ | 4,216 | $ | 383,154 | ||||||||||||
As a percent of total sales | 18.4 | % | 10.8 | % | (10.6 | %) | (3.9 | %) | 9.4 | % | 13.6 | % | ||||||||||||||||
Special items charge (gain) (3) | $ | (68 | ) | $ | 904 | $ | 28,635 | $ | 21,715 | $ | — | $ | — | $ | 51,186 | |||||||||||||
EBIT, as adjusted (4) | $ | 335,465 | $ | 48,822 | $ | 1,321 | $ | 15,953 | $ | 28,563 | $ | 4,216 | $ | 434,340 | ||||||||||||||
As a percent of total sales | 18.4 | % | 11.0 | % | 0.5 | % | 10.7 | % | 9.4 | % | 15.4 | % |
(1) | EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. |
(2) | Special items in the three and twelve months ended December 31, 2015 represent rationalization charges primarily related to employee severance, pension settlement charges and charges relating to a Venezuelan remeasurement loss resulting from the adoption of a new foreign exchange mechanism. Special items in the year ended December 31, 2015 also include charges related to the impairment of long-lived assets and goodwill. |
(3) | Special items in the three and twelve months ended December 31, 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 twelve months ended December 31, 2014 also include the impact of the Venezuelan remeasurement losses related to the adoption of a new foreign exchange mechanism in the first quarter. |
(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. |
Three Months Ended December 31st Change in Net Sales by Segment | ||||||||||||||||||||||||
Change in Net Sales due to: | ||||||||||||||||||||||||
Net Sales 2014 | Volume | Acquisitions | Price | Foreign Exchange | Net Sales 2015 | |||||||||||||||||||
Operating Segments | ||||||||||||||||||||||||
North America Welding | $ | 429,907 | $ | (64,157 | ) | $ | 10,975 | $ | 5,307 | $ | (8,154 | ) | $ | 373,878 | ||||||||||
Europe Welding | 97,288 | (7,770 | ) | — | (528 | ) | (12,081 | ) | 76,909 | |||||||||||||||
Asia Pacific Welding | 58,113 | (15,531 | ) | 3,494 | (655 | ) | (2,604 | ) | 42,817 | |||||||||||||||
South America Welding | 32,689 | (8,889 | ) | — | 53,455 | (62,305 | ) | 14,950 | ||||||||||||||||
The Harris Products Group | 65,957 | (1,822 | ) | — | (1,758 | ) | (2,946 | ) | 59,431 | |||||||||||||||
Consolidated | $ | 683,954 | $ | (98,169 | ) | $ | 14,469 | $ | 55,821 | $ | (88,090 | ) | $ | 567,985 | ||||||||||
Consolidated (excluding Venezuela) | $ | 668,130 | $ | (91,693 | ) | $ | 14,469 | $ | 3,032 | $ | (29,696 | ) | $ | 564,242 | ||||||||||
% Change | ||||||||||||||||||||||||
North America Welding | (14.9 | %) | 2.6 | % | 1.2 | % | (1.9 | %) | (13.0 | %) | ||||||||||||||
Europe Welding | (8.0 | %) | — | (0.5 | %) | (12.4 | %) | (20.9 | %) | |||||||||||||||
Asia Pacific Welding | (26.7 | %) | 6.0 | % | (1.1 | %) | (4.5 | %) | (26.3 | %) | ||||||||||||||
South America Welding | (27.2 | %) | — | 163.5 | % | (190.6 | %) | (54.3 | %) | |||||||||||||||
The Harris Products Group | (2.8 | %) | — | (2.7 | %) | (4.5 | %) | (9.9 | %) | |||||||||||||||
Consolidated | (14.4 | %) | 2.1 | % | 8.2 | % | (12.9 | %) | (17.0 | %) | ||||||||||||||
Consolidated (excluding Venezuela) | (13.7 | %) | 2.2 | % | 0.5 | % | (4.4 | %) | (15.5 | %) | ||||||||||||||
Twelve Months Ended December 31st Change in Net Sales by Segment | ||||||||||||||||||||||||
Change in Net Sales due to: | ||||||||||||||||||||||||
Net Sales 2014 | Volume | Acquisitions | Price | Foreign Exchange | Net Sales 2015 | |||||||||||||||||||
Operating Segments | ||||||||||||||||||||||||
North America Welding | $ | 1,700,924 | $ | (129,921 | ) | $ | 57,333 | $ | 14,944 | $ | (32,923 | ) | $ | 1,610,357 | ||||||||||
Europe Welding | 425,775 | (18,179 | ) | — | (2,285 | ) | (68,487 | ) | 336,824 | |||||||||||||||
Asia Pacific Welding | 243,800 | (49,501 | ) | 5,295 | (2,511 | ) | (10,468 | ) | 186,615 | |||||||||||||||
South America Welding | 148,595 | (24,240 | ) | — | 116,765 | (103,106 | ) | 138,014 | ||||||||||||||||
The Harris Products Group | 294,230 | (2,168 | ) | — | (15,746 | ) | (12,335 | ) | 263,981 | |||||||||||||||
Consolidated | $ | 2,813,324 | $ | (224,009 | ) | $ | 62,628 | $ | 111,167 | $ | (227,319 | ) | $ | 2,535,791 | ||||||||||
Consolidated (excluding Venezuela) | $ | 2,741,531 | $ | (211,098 | ) | $ | 62,628 | $ | (2,598 | ) | $ | (139,334 | ) | $ | 2,451,129 | |||||||||
% Change | ||||||||||||||||||||||||
North America Welding | (7.6 | %) | 3.4 | % | 0.9 | % | (1.9 | %) | (5.3 | %) | ||||||||||||||
Europe Welding | (4.3 | %) | — | (0.5 | %) | (16.1 | %) | (20.9 | %) | |||||||||||||||
Asia Pacific Welding | (20.3 | %) | 2.2 | % | (1.0 | %) | (4.3 | %) | (23.5 | %) | ||||||||||||||
South America Welding | (16.3 | %) | — | 78.6 | % | (69.4 | %) | (7.1 | %) | |||||||||||||||
The Harris Products Group | (0.7 | %) | — | (5.4 | %) | (4.2 | %) | (10.3 | %) | |||||||||||||||
Consolidated | (8.0 | %) | 2.2 | % | 4.0 | % | (8.1 | %) | (9.9 | %) | ||||||||||||||
Consolidated (excluding Venezuela) | (7.7 | %) | 2.3 | % | (0.1 | %) | (5.1 | %) | (10.6 | %) |
1 Year Lincoln Electric Chart |
1 Month Lincoln Electric Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions