Business
Lincoln Electric Reports Third Quarter 2020 Results
Third Quarter 2020 Highlights• Net sales decline narrows to 8.5% on 8.3% lower organic sales• Operating income margin of 11.6%; Adjusted operating income
About this update from Lincoln Electric Holdings, Inc.
[{"type":"text","content":"Third Quarter 2020 Highlights• Net sales decline narrows to 8.5% on 8.3% lower organic sales• Operating income margin of 11.6%; Adjusted operating income margin of 12.6%• EPS of $0.97; Adjusted EPS of $1.10• Solid balance sheet profile and strong cash flow generation with 117% cash conversion• Cost reduction actions now estimated to provide $80 to $85 million of benefits in 2020 CLEVELAND, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported third quarter 2020 net income of $58.5 million, or diluted earnings per share (EPS) of $0.97, which includes special item after-tax charges of $7.5 million, or $0.13 EPS. This compares with prior year period net income of $72.5 million, or $1.17 EPS, which included special item after-tax net benefits of $4.8 million, or $0.08 EPS. Excluding these items, third quarter 2020 Adjusted net income was $66.0 million, or $1.10 Adjusted EPS. This compares with Adjusted net income of $67.7 million, or $1.09 Adjusted EPS in the prior year period.\n Third quarter 2020 sales decreased 8.5% to $668.9 million from an 8.3% decrease in organic sales and 0.2% unfavorable foreign exchange. Operating income for the third quarter 2020 was $77.8 million, or 11.6% of sales, including $6.3 million in rationalization and asset impairment charges. This compares with operating income of $88.5 million, or 12.1% of sales, in the prior year period. Excluding special items, Adjusted operating income was $84.1 million, or 12.6% of sales, as compared with $91.6 million, or 12.5% of sales, in the prior year period. “We operated safely while supporting a rebound in demand across all of our regions and reportable segments in the third quarter,\" stated Christopher L. Mapes, Chairman, President and Chief Executive Officer. “Improved demand and diligent cost management generated solid profitability and earnings performance in the quarter.” Mapes continued, “Looking ahead, we are well-positioned to maximize growth and are focused on increasing profitability and returns to generate long-term value for our shareholders.” Nine Months 2020 Summary Net income for the nine months ended September 30, 2020 was $141.0 million, or $2.34 EPS, which includes special item after-tax charges of $33.9 million, or $0.57 EPS. This compares with prior year period net income of $229.4 millio...