Lincoln Electric Reports 3Q'12 Sales of $697.6 Million; 3Q Operating income increase of 18.5%; 3Q EPS of $0.77, $0.80 as

 Lincoln Electric Reports 3Q'12 Sales of $697.6 Million; 3Q Operating income
 increase of 18.5%; 3Q EPS of $0.77, $0.80 as adjusted, an increase of 16.7%,
                              21.2% as adjusted

PR Newswire

CLEVELAND, Oct. 31, 2012

CLEVELAND, Oct. 31, 2012 /PRNewswire/ --

Third Quarter and Nine Month Highlights

  oSales were $697.6 million in the Third Quarter 2012; Sales were $2.2
    billion for the nine months ended September 30, 2012, an increase of 8.4%
    from 2011
  oOperating income increased 18.5% to $88.7 million, or 12.7% of sales, from
    $74.8 million, or 10.7% of sales, in the Third Quarter 2011; Adjusted
    operating income increased 22.6% to $91.8 million or 13.2% of sales
  oOperating income increased 29.0% to $276.4 million, or 12.7% of sales,
    from $214.3 million, or 10.7% of sales, in the nine months ended September
    30, 2011; Adjusted operating income increased 31.4% to $282.1 million, or
    13.0% of sales
  oNet income increased 16.6% to $64.8 million, or $0.77 per diluted share,
    from $55.5 million, or $0.66 per diluted share, in the Third Quarter 2011;
    Adjusted net income increased 21.5% to $67.5 million, or $0.80 per diluted
    share, from $55.5 million, or $0.66 per diluted share, in the Third
    Quarter 2011
  oNet cash provided by operating activities was $82.5 million in the Third
    Quarter 2012; Net cash provided by operating activities in the nine months
    ended September 30, 2012 increased $112.9 million, or 86.6%, to $243.3
    million

Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported
third quarter 2012 net income of $64.8 million, or $0.77 per diluted share.
Adjusted net income was $67.5 million, or $0.80 per diluted share, compared
to adjusted net income of $55.5 million, or $0.66 per diluted share, in the
comparable 2011 period.

Sales were $697.6 million in the third quarter 2012 versus $701.6 million in
the comparable 2011 period, a decrease of 0.6%. Operating income for the
third quarter increased $13.9 million to $88.7 million, or 12.7% of sales,
from $74.8 million, or 10.7% of sales, in the comparable 2011 period. The
effective tax rate for the third quarter 2012 was 28.8% compared with 27.0% in
the same period of 2011.

Sales for the nine months ended September 30, 2012 were $2.2 billion versus
$2.0 billion in the comparable 2011 period, an increase of 8.4%. Operating
income for the nine months ended September 30, 2012 increased $62.1 million to
$276.4 million, or 12.7% of sales, from $214.3 million, or 10.7% of sales, in
the comparable 2011 period.

Net income for the nine months ended September 30, 2012 was $195.3 million, or
$2.32 per diluted share, compared with net income of $159.5 million, or $1.88
per diluted share, in the comparable 2011 period. Adjusted net income was
$199.9 million, or $2.37 per diluted share, compared to adjusted net income of
$154.8 million, or $1.83 per diluted share, in the comparable 2011 period.
The effective tax rate for the nine months ended September 30, 2012 was 30.8%
compared with 26.9% in 2011. The nine months ended September 30, 2011
included a favorable $4.8 million tax adjustment for tax audit settlements.

"The Company delivered excellent operating results this quarter," said John M.
Stropki, Chairman and Chief Executive Officer. "We expanded margins
significantly, drove our return on invested capital to almost 19% and
generated strong operating cash flows which we will continue to deploy to
increase shareholder value.

"Our strong operating performance was delivered in spite of the challenges
associated with a weaker macroeconomic environment in international markets
and the slowing growth rates in our North America Welding segment. Despite
these headwinds, we saw stabilization in orders and revenues. Although we
remain cautious for the near term, we are mildly optimistic that the global
economy could show moderate improvement in 2013.

"Our overall performance reflects the successful execution of our global
growth and operational improvement strategies. We will continue to explore
attractive acquisitions that will shape our product portfolio and grow our
global reach. We plan to continue our strong investment in new product
development and global commercial infrastructure. We remain well positioned
to execute our long-term strategic objectives, achieving significant earnings
growth and superior returns on invested capital."

Net cash provided by operating activities decreased $2.3 million to $82.5
million in the third quarter from $84.8 million for the comparable period in
2011. Third quarter cash flows from operations was reduced by a $56.0 million
deposit related to a Canadian income tax dispute. During the quarter, the
Company returned $34.2 million to shareholders through the payment of $14.2
million in dividends and the repurchase of $20.0 million, or 481,300 of the
Company's common shares, for treasury. The Company also invested $3.5 million
in acquisitions and voluntarily contributed $17.3 million to its U.S. pension
plans during the quarter.

Net cash provided by operating activities increased $112.9 million to $243.3
million in the nine months ended September 30, 2012 from $130.4 million for
the comparable period in 2011. The 2012 cash flows from operations was
reduced by a $56.0 million deposit related to a Canadian income tax dispute.
During the period, the Company repaid its $80.0 million senior unsecured
note. The Company also returned $102.7 million to shareholders through the
payment of $42.5 million in dividends and the repurchase of $60.2 million, or
1,341,984 of the Company's common shares, for treasury during the period. The
Company also invested $52.9 million in acquisitions and voluntarily
contributed $53.3 million to its U.S. pension plans.

The Company's Board of Directors declared a quarterly cash dividend of $0.17
per share, which was paid on October 15, 2012 to holders of record on
September 28, 2012.

Financial results for the third quarter 2012 can also be obtained at
http://www.lincolnelectric.com/InvestorNews.

A conference call to discuss the third quarter 2012 financial results is
scheduled for today, Wednesday, October 31, 2012, at 10:00 a.m., Eastern
Time. An audio webcast of the call is accessible through the Company's
website at http://www.lincolnelectric.com/InvestorWebcasts/.

Adjusted operating income, adjusted net income and adjusted diluted earnings
per share are non-GAAP financial measures that management believes are
important to investors to evaluate and compare the Company's financial
performance from period to period. Management uses this information in
assessing and evaluating the Company's underlying operating performance.
Non-GAAP financial measures should be read in conjunction with the GAAP
financial measures, as non-GAAP measures are a supplement to, and not a
replacement for, GAAP financial measures. Please refer to the attached
schedule for a reconciliation of non-GAAP financial measures to the related
GAAP financial measures.

Lincoln Electric is the world leader in the design, development and
manufacture of arc welding products, robotic arc welding systems, plasma and
oxyfuel cutting equipment and has a leading global position in the brazing and
soldering alloys market. Headquartered in Cleveland, Ohio, Lincoln has 45
manufacturing locations, including operations and joint ventures in 20
countries and a worldwide network of distributors and sales offices covering
more than 160 countries. For more information about Lincoln Electric and its
products and services, visit the Company's website at
http://www.lincolnelectric.com.

The Company's expectations and beliefs concerning the future contained in this
news release are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements reflect
management's current expectations and involve a number of risks and
uncertainties. Forward-looking statements generally can be identified by the
use of words such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "believe," "forecast," "guidance" or words of similar meaning.
Actual results may differ materially from such statements due to a variety of
factors that could adversely affect the Company's operating results. The
factors include, but are not limited to: general economic and market
conditions; the effectiveness of operating initiatives; currency exchange and
interest rates; adverse outcome of pending or potential litigation; possible
acquisitions; market risks and price fluctuations related to the purchase of
commodities and energy; global regulatory complexity; and the possible effects
of events beyond our control, such as political unrest, acts of terror and
natural disasters, on the Company or its customers, suppliers and the economy
in general. For additional discussion, see "Item 1A. Risk Factors" in the
Company's Annual Report on Form 10-K.

 Lincoln Electric Holdings, Inc.
 Financial Highlights
 (In thousands, except per share amounts)
 (Unaudited)
 Consolidated
 Statements of
 Income
                  Three Months Ended September 30,        Fav (Unfav) to
                                                          Prior Year
                  2012        % of   2011        % of   $         %
                              Sales              Sales
 Net sales        $         100.0%  $         100.0%  $      (0.6%)
                  697,552             701,624             (4,072)
 Cost of goods    484,190     69.4%   516,172     73.6%   31,982    6.2%
 sold
 Gross profit     213,362     30.6%   185,452     26.4%   27,910    15.0%
 Selling, general
 & administrative 121,602     17.4%   110,629     15.8%   (10,973)  (9.9%)
 expenses
 Rationalization
 and asset        3,059       0.4%    -           -       (3,059)   (100.0%)
 impairment
 charges (gains)
 Operating income 88,701      12.7%   74,823      10.7%   13,878    18.5%
 Interest income  916         0.1%    1,167       0.2%    (251)     (21.5%)
 Equity earnings  1,566       0.2%    1,488       0.2%    78        5.2%
 in affiliates
 Other income    746         0.1%    147         -       599       407.5%
 Interest expense (1,040)     (0.1%)  (1,752)     (0.2%)  712       40.6%
 Income before    90,889      13.0%   75,873      10.8%   15,016    19.8%
 income taxes
 Income taxes     26,153      3.7%    20,515      2.9%    (5,638)   (27.5%)
 Effective tax    28.8%               27.0%               (1.7%)
 rate
 Net income
 including        64,736      9.3%    55,358      7.9%    9,378     16.9%
 noncontrolling
 interests
 Noncontrolling
 interests in     (29)        -       (172)       -       143       83.1%
 subsidiaries'
 loss
 Net income       $        9.3%    $        7.9%    $      16.6%
                  64,765              55,530               9,235
 Basic earnings   $               $               $      18.2%
 per share        0.78               0.66                0.12
 Diluted earnings $               $               $      16.7%
 per share        0.77               0.66                0.11
 Weighted average 82,918              83,613
 shares (basic)
 Weighted average 83,916              84,549
 shares (diluted)
                  Nine Months Ended September 30,         Fav (Unfav) to
                                                          Prior Year
                  2012        % of   2011        % of   $         %
                              Sales              Sales
 Net sales        $           100.0%  $           100.0%  $       8.4%
                  2,168,719          2,000,096          168,623
 Cost of goods    1,515,095   69.9%   1,457,702   72.9%   (57,393)  (3.9%)
 sold
 Gross profit     653,624     30.1%   542,394     27.1%   111,230   20.5%
 Selling, general
 & administrative 372,931     17.2%   327,794     16.4%   (45,137)  (13.8%)
 expenses
 Rationalization
 and asset        4,317       0.2%    282         -       (4,035)   (1430.9%)
 impairment
 charges (gains)
 Operating income 276,376     12.7%   214,318     10.7%   62,058    29.0%
 Interest income  2,648       0.1%    2,436       0.1%    212       8.7%
 Equity earnings  4,264       0.2%    4,033       0.2%    231       5.7%
 in affiliates
 Other income    2,015       0.1%    2,154       0.1%    (139)     (6.5%)
 Interest expense (3,338)     (0.2%)  (5,037)     (0.3%)  1,699     33.7%
 Income before    281,965     13.0%   217,904     10.9%   64,061    29.4%
 income taxes
 Income taxes     86,715      4.0%    58,582      2.9%    (28,133)  (48.0%)
 Effective tax    30.8%               26.9%               (3.9%)
 rate
 Net income
 including        195,250     9.0%    159,322     8.0%    35,928    22.6%
 noncontrolling
 interests
 Noncontrolling
 interests in     (77)        -       (131)       -       54        41.2%
 subsidiaries'
 loss
 Net income       $         9.0%    $         8.0%    $      22.5%
                  195,327             159,453             35,874
 Basic earnings   $               $               $      23.7%
 per share        2.35               1.90                0.45
 Diluted earnings $               $               $      23.4%
 per share        2.32               1.88                0.44
 Weighted average 83,233              83,781
 shares (basic)
 Weighted average 84,326              84,826
 shares (diluted)



 Lincoln Electric Holdings, Inc.
 Financial Highlights
 (In thousands, except per share amounts)
 (Unaudited)
 Non-GAAP Financial
 Measures
                           Three Months Ended        Nine Months Ended
                           September 30,             September 30,
                           2012         2011         2012          2011
 Operating income as       $        $        $         $    
 reported                                         276,376      214,318
                           88,701       74,823
  Special items
 (pre-tax):
  Rationalization and
 asset impairment charges  3,059        -            4,317         282
 (gains) ^(1)
  Venezuelan
 statutory severance       -            -            1,381         -
 obligation ^(2)
 Adjusted operating income $        $        $         $    
 ^(4)                                             282,074      214,600
                           91,760       74,823
                           $        $        $         $    
 Net income as reported                           195,327      159,453
                           64,765       55,530
  Special items
 (after-tax):
  Rationalization and
 asset impairment charges  2,704        -            3,619         237
 (gains) ^(1)
  Venezuelan
 statutory severance       -            -            906           -
 obligation ^(2)
  Adjustment for tax  -            -            -             (4,844)
 audit settlements ^(3)
                           $        $        $         $    
 Adjusted net income ^(4)                         199,852      154,846
                           67,469       55,530
 Diluted earnings per      $        $        $         $    
 share as reported                                        
                           0.77         0.66         2.32          1.88
 Special items             0.03         -            0.05          (0.05)
 Adjusted diluted earnings $        $        $         $    
 per share ^(4)                                           
                           0.80         0.66         2.37          1.83
 Weighted average shares   83,916       84,549       84,326        84,826
 (diluted)
            The three and nine month periods ended September 30, 2012 include
            net charges associated with severance, impairment and other costs
            from the consolidation of manufacturing operations initiated in
            2012 partially offset by gains related to the sale of assets at
 ^(1)       rationalized operations. The nine month period ended Septembr
            30, 2011 includes charges associated with severance and other
            costs from the consolidation of manufacturing operations
            initiated in 2009 partially offset by gains related to the sale
            of assets at rationalized operations.
            Represents an unfavorable adjustment due to a change in
 ^(2)       Venezuelan labor law which provides for increased employee
            severance obligations.
 ^(3)       Represents a favorable adjustment for tax audit settlements.
            Adjusted operating income, Adjusted net income and Adjusted
            diluted earnings per share are non-GAAP financial measures that
            management believes are important to investors to evaluate and
            compare the Company's financial performance from period to
 ^(4)       period. Management uses this information in assessing and
            evaluating the Company's underlying operating performance.
            Non-GAAP financial measures should be read in conjunction with
            the GAAP financial measures, as non-GAAP measures are a
            supplement to, and not a replacement for, GAAP financial
            measures.



 Lincoln Electric Holdings, Inc.
 Financial Highlights
 (In thousands)
 (Unaudited)
 Balance Sheet Highlights
                                        September 30,        December 31,
 Selected Consolidated Balance Sheet    2012                 2011
 Data
 Cash and cash equivalents              $    340,675      $    361,101
 Total current assets                   1,239,631            1,219,270
 Property, plant and equipment, net     479,024              470,451
 Total assets                           2,091,522            1,976,776
 Total current liabilities              492,702              471,042
 Short-term debt ^(1)                   19,494               101,418
 Long-term debt                         1,680                1,960
 Total equity                           1,336,191            1,193,242
                                        September 30,        December 31,
 Net Operating Working Capital          2012                 2011
 Accounts receivable                    $    391,360      $    386,197
 Inventory                              390,948              373,238
 Trade accounts payable                 186,545              176,312
 Net operating working capital          $    595,763      $    583,123
 Net operating working capital to net   21.4%                21.0%
 sales^(2)
                                        September 30,        December 31,
 Invested Capital                       2012                 2011
 Short-term debt ^(1)                   $     19,494     $    101,418
 Long-term debt                         1,680                1,960
 Total debt                             21,174               103,378
 Total equity                           1,336,191            1,193,242
 Invested capital                       $  1,357,365       $  1,296,620
 Total debt / invested capital          1.6%                 8.0%
 Return on invested capital ^(3)        18.7%                16.9%
 ^(1)           Includes current portion of long-term debt.
                Net operating working capital to net sales is defined as net
 ^(2)           operating working capital divided by annualized rolling three
                months of sales.
                Return on invested capital is defined as rolling 12 months of
 ^(3)           earnings excluding tax-effected interest divided by invested
                capital.



 Lincoln Electric Holdings, Inc.
 Financial Highlights
 (In thousands, except per share amounts)
 (Unaudited)
 Consolidated Statements of Cash Flows
                                           Three Months Ended September 30,
                                           2012               2011
 OPERATING ACTIVITIES:
 Net income                                $            $      
                                           64,765            55,530
 Noncontrolling interests in               (29)               (172)
 subsidiaries' loss
 Net income including noncontrolling       64,736             55,358
 interests
 Adjustments to reconcile Net income
 including noncontrolling interests to
 Net
  cash provided by operating
 activities:
 Rationalization and asset impairment      357                -
 charges
 Depreciation and amortization             16,435             15,740
 Equity earnings in affiliates, net       (738)              (758)
 Other non-cash items, net                 (6,515)            3,624
 Changes in operating assets and
 liabilities, net of effects from
 acquisitions:
 Decrease in accounts receivable           35,299             3,436
 Decrease in inventories                   13,870             13,000
 Decrease in trade accounts payable        (17,565)           (31,049)
 Decrease in accrued pensions              (17,615)           (13,946)
 Net change in other current assets and    50,929             39,699
 liabilities
 Net change in other long-term assets      (56,738)           (302)
 and liabilities
 NET CASH PROVIDED BY OPERATING            82,455             84,802
 ACTIVITIES
 INVESTING ACTIVITIES:
 Capital expenditures                      (13,060)           (21,380)
 Acquisition of businesses, net of cash    (3,516)            (44,459)
 acquired
 Proceeds from sale of property, plant     200                154
 and equipment
 NET CASH USED BY INVESTING ACTIVITIES     (16,376)           (65,685)
 FINANCING ACTIVITIES:
 Net change in borrowings                  (2,632)            (1,392)
 Proceeds from exercise of stock options   483                1,012
 Tax benefit from exercise of stock        140                300
 options
 Purchase of shares for treasury           (20,017)           (14,321)
 Cash dividends paid to shareholders       (14,147)           (12,996)
 NET CASH USED BY FINANCING ACTIVITIES     (36,173)           (27,397)
 Effect of exchange rate changes on Cash   2,806              (8,175)
 and cash equivalents
 INCREASE (DECREASE) IN CASH AND CASH      32,712             (16,455)
 EQUIVALENTS
 Cash and cash equivalents at beginning    307,963            337,915
 of period
 Cash and cash equivalents at end of       $             $     
 period                                    340,675           321,460
 Cash dividends paid per share             $          $       
                                           0.17              0.155



 Lincoln Electric Holdings, Inc.
 Financial Highlights
 (In thousands, except per share amounts)
 (Unaudited)
 Consolidated Statements of Cash Flows
                                           Nine Months Ended September 30,
                                           2012               2011
 OPERATING ACTIVITIES:
 Net income                                $             $     
                                           195,327           159,453
 Noncontrolling interests in               (77)               (131)
 subsidiaries' loss
 Net income including noncontrolling       195,250            159,322
 interests
 Adjustments to reconcile Net income
 including noncontrolling interests to
 Net
  cash provided by operating
 activities:
 Rationalization and asset impairment      357                23
 charges
 Depreciation and amortization             48,220             47,089
 Equity earnings in affiliates, net       (1,449)            (1,316)
 Other non-cash items, net                 29,159             28,056
 Changes in operating assets and
 liabilities, net of effects from
 acquisitions:
 Decrease (increase) in accounts           13,750             (72,287)
 receivable
 Increase in inventories                   (6,832)            (98,727)
 (Decrease) increase in trade accounts     (1,182)            34,988
 payable
 Decrease in accrued pensions              (54,472)           (30,490)
 Net change in other current assets and    73,413             67,084
 liabilities
 Net change in other long-term assets      (52,873)           (3,364)
 and liabilities
 NET CASH PROVIDED BY OPERATING            243,341            130,378
 ACTIVITIES
 INVESTING ACTIVITIES:
 Capital expenditures                      (39,307)           (50,750)
 Acquisition of businesses, net of cash    (52,851)           (62,340)
 acquired
 Proceeds from sale of property, plant     538                1,003
 and equipment
 Other investing activities                (1,541)            -
 NET CASH USED BY INVESTING ACTIVITIES     (93,161)           (112,087)
 FINANCING ACTIVITIES:
 Net change in borrowings                  (88,001)           (2,878)
 Proceeds from exercise of stock options   12,695             7,211
 Tax benefit from exercise of stock        5,594              2,327
 options
 Purchase of shares for treasury           (60,155)           (27,630)
 Cash dividends paid to shareholders       (42,510)           (39,001)
 NET CASH USED BY FINANCING ACTIVITIES     (172,377)          (59,971)
 Effect of exchange rate changes on Cash   1,771              (3,053)
 and cash equivalents
 DECREASE IN CASH AND CASH EQUIVALENTS     (20,426)           (44,733)
 Cash and cash equivalents at beginning    361,101            366,193
 of period
 Cash and cash equivalents at end of       $             $     
 period                                    340,675           321,460
 Cash dividends paid per share             $          $       
                                           0.51              0.465



 Lincoln Electric Holdings, Inc.
 Segment Highlights
 (In thousands)
 (Unaudited)
                North                           South     The
                                                          Harris
                America     Europe   Asia      America   Products  Corporate /
                                      Pacific
                Welding     Welding   Welding   Welding   Group     Eliminations  Consolidated
 Three months
 ended
 September 30,
 2012
                $       $      $      $      $      $        $     
 Net sales       390,327   104,480                                 -    697,552
                                      76,263   44,545   81,937
 Inter-segment  28,186      3,261     2,748     27        1,869     (36,091)      -
 sales
                $       $      $      $      $      $         $     
  Total      418,513   107,741                             (36,091)      697,552
                                      79,011   44,572   83,806
                $       $      $      $      $      $        $     
 EBIT^(1)         70,320                                  (2,620)        91,013
                            6,641    1,346    7,587    7,739
  As a
 percent of     16.8%       6.2%      1.7%      17.0%     9.2%                    13.0%
 total sales
 Special items
 charge         477         1,874     708       -         -         -             3,059
 (gain)^(2)
 EBIT, as       $       $      $      $      $      $        $     
 adjusted^(4)     70,797                                  (2,620)        94,072
                            8,515    2,054    7,587    7,739
  As a
 percent of     16.9%       7.9%      2.6%      17.0%     9.2%                    13.5%
 total sales
 Three months
 ended
 September 30,
 2011
                $       $      $      $      $      $        $     
 Net sales       345,182   128,294                                 -    701,624
                                      97,790   44,169   86,189
 Inter-segment  33,070      3,238     4,111     254       2,485     (43,158)      -
 sales
                $       $      $      $      $      $         $     
  Total      378,252   131,532  101,901                    (43,158)      701,624
                                                44,423   88,674
                $       $      $      $      $      $        $     
 EBIT^(1)         53,436                                   1,806         76,458
                            10,282   1,899    4,025    5,010
  As a
 percent of     14.1%       7.8%      1.9%      9.1%      5.6%                    10.9%
 total sales
 Special items
 charge         -           -         -         -         -         -             -
 (gain)^(3)
 EBIT, as       $       $      $      $      $      $        $     
 adjusted^(4)     53,436                                   1,806         76,458
                            10,282   1,899    4,025    5,010
  As a
 percent of     14.1%       7.8%      1.9%      9.1%      5.6%                    10.9%
 total sales
 Nine months
 ended
 September 30,
 2012
 Net sales      $        $      $      $      $      $        $   
                1,187,879  344,720  254,259  121,552  260,309      -    2,168,719
 Inter-segment  101,386     12,178    11,641    38        6,605     (131,848)     -
 sales
  Total     $        $      $      $      $      $          $   
                1,289,265  356,898  265,900  121,590  266,914  (131,848)     2,168,719
                $       $      $      $      $      $        $     
 EBIT^(1)        216,318                                      (6,882)       282,655
                            29,851   7,344    12,091   23,933
  As a
 percent of     16.8%       8.4%      2.8%      9.9%      9.0%                    13.0%
 total sales
 Special items
 charge         554         2,466     1,297     1,381     -         -             5,698
 (gain)^(2)
 EBIT, as       $       $      $      $      $      $        $     
 adjusted^(4)    216,872                                      (6,882)       288,353
                            32,317   8,641    13,472   23,933
  As a
 percent of     16.8%       9.1%      3.2%      11.1%     9.0%                    13.3%
 total sales
 Nine months
 ended
 September 30,
 2011
 Net sales      $       $      $      $      $      $        $   
                 947,594   381,750  288,072  116,011  266,669     -      2,000,096
 Inter-segment  105,419     13,375    10,721    374       6,735     (136,624)     -
 sales
  Total     $        $      $      $      $      $          $   
                1,053,013  395,125  298,793  116,385  273,404  (136,624)     2,000,096
                $       $      $      $      $      $        $     
 EBIT^(1)        158,192                                     1,697        220,505
                            26,875   3,391    9,600    20,750
  As a
 percent of     15.0%       6.8%      1.1%      8.2%      7.6%                    11.0%
 total sales
 Special items
 charge         -           392       (110)     -         -         -             282
 (gain)^(3)
 EBIT, as       $       $      $      $      $      $        $     
 adjusted^(4)    158,192                                     1,697        220,787
                            27,267   3,281    9,600    20,750
  As a
 percent of     15.0%       6.9%      1.1%      8.2%      7.6%                    11.0%
 total sales
 ^(1)    EBIT is defined as Operating income plus Equity earnings in affiliates and Other
         income.
           Special items in the three and nine month periods ended September 30, 2012 include
           rationalization and asset impairment charges (gains). Special items in the nine
 ^(2)      months ended September 30, 2012 also include an unfavorable adjustment due to a
           change in Venezuelan labor law which provides for increased employee severance
           obligations.
 ^(3)      Special items include rationalization and asset impairment charges (gains).
           The primary profit measure used by management to assess segment performance is
 ^(4)      EBIT, as adjusted. EBIT for each operating segment is adjusted for special items
           to derive EBIT, as adjusted.



 Lincoln Electric Holdings, Inc.
 Change in Net Sales by Segment
 (In thousands)
 (Unaudited)
 Three Months Ended September 30th Change in Net
 Sales by Segment
                          Change in Net Sales due to:
               Net Sales                                     Foreign    Net Sales
               2011       Volume     Acquisitions  Price     Exchange   2012
 Operating
 Segments
 North America $         $       $           $      $      $ 
 Welding       345,182   9,479     26,804       9,267    (405)      390,327
 Europe        128,294    (11,366)   -             (630)     (11,818)   104,480
 Welding
 Asia Pacific  97,790     (18,989)   -             (1,035)   (1,503)    76,263
 Welding
 South America 44,169     (1,237)    -             5,114     (3,501)    44,545
 Welding
 The Harris
 Products      86,189     6,440      -             (7,220)   (3,472)    81,937
 Group
 Consolidated  $         $         $           $      $         $ 
               701,624   (15,673)  26,804       5,496    (20,699)  697,552
 % Change
 North America            2.7%       7.8%          2.7%      (0.1%)     13.1%
 Welding
 Europe                   (8.9%)     -             (0.5%)    (9.2%)     (18.6%)
 Welding
 Asia Pacific             (19.4%)    -             (1.1%)    (1.5%)     (22.0%)
 Welding
 South America            (2.8%)     -             11.6%     (7.9%)     0.9%
 Welding
 The Harris
 Products                 7.5%       -             (8.4%)    (4.0%)     (4.9%)
 Group
 Consolidated             (2.2%)     3.8%          0.8%      (3.0%)     (0.6%)
 Nine Months Ended September 30th Change in Net
 Sales by Segment
                          Change in Net Sales due to:
               Net Sales                                     Foreign    Net Sales
               2011       Volume     Acquisitions  Price     Exchange   2012
 Operating
 Segments
 North America $         $         $           $       $        $
 Welding       947,594   115,620   98,361       31,052   (4,748)   1,187,879
 Europe        381,750    (20,247)   8,322         7,126     (32,231)   344,720
 Welding
 Asia Pacific  288,072    (36,151)   -             2,075     263        254,259
 Welding
 South America 116,011    416        -             12,690    (7,565)    121,552
 Welding
 The Harris
 Products      266,669    15,741     -             (14,131)  (7,970)    260,309
 Group
 Consolidated  $          $        $  106,683  $       $         $
               2,000,096  75,379                  38,812   (52,251)  2,168,719
 % Change
 North America            12.2%      10.4%         3.3%      (0.5%)     25.4%
 Welding
 Europe                   (5.3%)     2.2%          1.9%      (8.4%)     (9.7%)
 Welding
 Asia Pacific             (12.5%)    -             0.7%      0.1%       (11.7%)
 Welding
 South America            0.4%       -             10.9%     (6.5%)     4.8%
 Welding
 The Harris
 Products                 5.9%       -             (5.3%)    (3.0%)     (2.4%)
 Group
 Consolidated             3.8%       5.3%          1.9%      (2.6%)     8.4%



SOURCE Lincoln Electric Holdings, Inc.

Website: http://www.lincolnelectric.com
Contact: Roy L. Morrow, +1-216-383-4893, Roy_Morrow@lincolnelectric.com
 
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