Business
Lincoln Electric Reports Second Quarter 2020 Results
Second Quarter 2020 Highlights Net sales decline 24.0% on lower organic salesOperating income margin of 6.7%; Adjusted operating income margin of 10.7%EPS of
About this update from Lincoln Electric Holdings, Inc.
[{"type":"text","content":"Second Quarter 2020 Highlights\n Net sales decline 24.0% on lower organic salesOperating income margin of 6.7%; Adjusted operating income margin of 10.7%EPS of $0.45; Adjusted EPS of $0.80Solid balance sheet profile and strong cash flow generation with 189% cash conversionCost reduction actions now estimated to provide $55 to $65 million of benefits in 2020 CLEVELAND, July 27, 2020 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported second quarter 2020 net income of $27.0 million, or diluted earnings per share (EPS) of $0.45, which includes special item after-tax net charges of $21.0 million, or $0.35 EPS. This compares with prior year period net income of $85.5 million, or $1.36 EPS, which included special item after-tax net benefits of $4.6 million, or $0.08 EPS. Excluding these items, second quarter 2020 adjusted net income was $48.0 million, or $0.80 EPS. This compares with $80.9 million, or $1.28 EPS in the prior year period. The effective tax rate was 19.8% in the second quarter 2020 as compared with 17.4% in the prior year period. Excluding special items, the adjusted effective tax rate was 20.3%, or 22.0% in the comparable 2019 period. Second quarter 2020 sales decreased 24.0% to $590.7 million from a 24.8% decrease in organic sales and 1.1% unfavorable foreign exchange, partially offset by a 2.0% benefit from acquisitions. Operating income for the second quarter 2020 was $39.8 million, or 6.7% of sales, including $23.2 million in rationalization and asset impairment charges, which are primarily non-cash charges. This compares with operating income of $105.2 million, or 13.5% of sales, in the prior year period. Excluding special items, adjusted operating income was $63.0 million, or 10.7% of sales, as compared with $105.9 million, or 13.6% of sales, in the prior year period. “As we navigate through the pandemic, I am proud of how effectively we are managing employee safety while serving our customers,” stated Christopher L. Mapes, Chairman, President and Chief Executive Officer. “We continued to generate strong cash flows and increased liquidity, while achieving solid second quarter profitability through aggressive cost management.\" Mapes commented, “As the pace of recovery remains uncertain, we have expanded our cost action initiatives and now expect to generate $55 to $65 ...