Business
Lincoln Electric Reports First Quarter 2020 Results
First Quarter 2020 Highlights • Operating as an “essential business” (1) in substantially all locations to serve customers • Implemented best practice hygiene
About this update from Lincoln Electric Holdings, Inc.
[{"type":"text","content":"First Quarter 2020 Highlights • Operating as an “essential business” (1) in substantially all locations to serve customers • Implemented best practice hygiene and safety measures to protect employees • Net sales declined 7.5%; Organic sales declined 9.5% • Operating income margin declined 90 basis points to 11.5%; Adjusted operating income margin declined 40 basis points to 12.6% • Q1 EPS decreases 18.8% to $0.91; Adjusted EPS decreases 14.5% to $1.00 • $140 million returned to shareholders through dividends and share repurchases • Solid balance sheet with 1.85 Total debt/EBITDA ratio, $163 million in cash and $314 million in available credit under existing borrowing facilities (1) \"Essential business\" defined as business that continues to operate within a critical infrastructure sector established by the Cybersecurity & Infrastructure Security Agency of the U.S. Department of Homeland Security, as well as other governments worldwide. CLEVELAND, April 27, 2020 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported first quarter 2020 net income of $55.6 million, or diluted earnings per share (EPS) of $0.91, which includes special item after-tax net charges of $5.4 million, or $0.09 EPS. This compares with prior year period net income of $71.5 million, or $1.12 EPS, which included special item after-tax charges of $3.5 million, or $0.05 EPS. Excluding these items, first quarter 2020 adjusted net income was $60.9 million, or $1.00 EPS, as compared with $75.0 million, or $1.17 EPS in the prior year period. The reported and adjusted effective tax rate was 26.8% in the first quarter 2020 as compared with a reported 23.1% tax rate in the prior year period, or 22.9% on an adjusted basis.\n First quarter 2020 sales decreased 7.5% to $702.0 million from a 9.5% decrease in organic sales and 1.3% unfavorable foreign exchange, partially offset by a 3.2% benefit from acquisitions. Operating income for the first quarter 2020 was $81.1 million, or 11.5% of sales. This compares with operating income of $94.5 million, or 12.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $88.4 million, or 12.6% of sales, as compared with $98.8 million, or 13.0% of sales, in the prior year period. “We executed well in an increasingly challenging environment,” said Christophe...