Business
Lincoln Electric Reports Fourth Quarter and Full Year 2019 Results
Fourth Quarter and Full Year 2019 Highlights• Q4 EPS decreases 23.7% to $1.03, Adjusted EPS decreases 10.9% to $1.15• Q4 Cash flow from operations increases
About this update from Lincoln Electric Holdings, Inc.
[{"type":"text","content":"\n Fourth Quarter and Full Year 2019 Highlights• Q4 EPS decreases 23.7% to $1.03, Adjusted EPS decreases 10.9% to $1.15• Q4 Cash flow from operations increases 23.3% to $123 million and achieved 150% cash conversion (1)• Record full year cash flow from operations increases 22.5% to $403 million• $411 million returned to shareholders through dividends and share repurchases for full year (1)Cash conversion is defined as Net cash provided by operating activities less Capital expenditures divided by Adjusted net income. CLEVELAND, Ohio, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported fourth quarter 2019 net income of $63.7 million, or diluted earnings per share (EPS) of $1.03, which includes special item after-tax net charges of $7.3 million, or $0.12 EPS. This compares with prior year net income of $86.8 million, or $1.35 EPS, which included special item after-tax benefits of $3.3 million, or $0.06 EPS. Excluding these items, fourth quarter 2019 adjusted net income was $71.0 million, or $1.15 EPS, as compared with $83.5 million, or $1.29 EPS in the prior year period. The effective tax rate was 20.6% in the fourth quarter 2019 as compared with 8.1% in the prior year period. Excluding special items, the adjusted effective tax rate was 20.4%, which compares to 14.7% in the comparable 2018 period. Fourth quarter 2019 sales decreased 1.0% to $736.3 million from a 6.5% decrease in organic sales, offset by a 5.9% benefit from acquisitions. Operating income for the fourth quarter 2019 was $82.7 million, or 11.2% of sales. This compares with operating income of $94.9 million, or 12.8% of sales, in the prior year period. Excluding special items, adjusted operating income was $91.6 million, or 12.4% of sales, as compared with $96.7 million, or 13.0% of sales, in the prior year period. “In 2019, we achieved solid returns, record cash flow generation and strong cash conversion as industrial demand decelerated through the year,” stated Christopher L. Mapes, Chairman, President & CEO. “Extensive product launches, new acquisitions and expansions across our network of global tech centers demonstrate our industry leadership and investments in innovative, value-added solutions. While we manage this challenging portion of the cycle, we are well-positioned to capture growth and generate lo...