Business
Lincoln Electric Reports Third Quarter 2021 Results
Third Quarter 2021 Highlights Net sales increase 20.6% to record $806.5 million on 18.3% higher organic sales Operating income margin of 14.3%; Adjusted
About this update from Lincoln Electric Holdings, Inc.
[{"type":"text","content":"Third Quarter 2021 Highlights Net sales increase 20.6% to record $806.5 million on 18.3% higher organic sales Operating income margin of 14.3%; Adjusted operating income margin of 15.2% EPS decreases 45.4% to $0.53; Adjusted EPS increases 41.8% to record $1.56 Cash flow from operations increase 23% to $109.9 million ROIC increases 440 basis points to 22.8% Pension plan termination resulted in pre-tax non-cash charges of $73.6 million CLEVELAND, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported third quarter 2021 net income of $31.8 million, or diluted earnings per share (EPS) of $0.53, which includes special item after-tax charges of $62.0 million, or $1.03 EPS. Special item charges primarily relate to the termination of a pension plan. This compares with prior year period net income of $58.5 million, or $0.97 EPS, which included special item after-tax charges of $7.5 million, or $0.13 EPS. Excluding these items, third quarter 2021 adjusted net income was $93.8 million, or $1.56 Adjusted EPS. This compares with Adjusted net income of $66.0 million, or $1.10 Adjusted EPS in the prior year period. Third quarter 2021 sales increased 20.6% to $806.5 million from an 18.3% increase in organic sales, 2.0% benefit from acquisitions and 0.3% favorable foreign exchange. Operating income for the third quarter 2021 was $115.6 million, or 14.3% of sales, including special item charges of $7.2 million. This compares with operating income of $77.8 million, or 11.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $122.7 million, or 15.2% of sales, as compared with $84.1 million, or 12.6% of sales, in the prior year period. “I am pleased to report that strong execution of our 2025 Higher Standard Strategy initiatives delivered record third quarter adjusted earnings performance,” said Christopher L. Mapes, Chairman, President and Chief Executive Officer. “We are serving strong demand and are effectively managing inflationary headwinds and supply chain constraints, which generated solid cash flows, cash conversion and superior returns.” Pension Plan Termination During the third quarter 2021, the Company recognized $73.6 million of non-cash pension settlement charges associated with lump sum distributions related to the termination of a pension ...