Lincoln Electric Reports Record 2012 Sales and EPS; 4Q Sales of $684.6 million; Full Year Sales of $2.9 billion; 4Q Operating

    Lincoln Electric Reports Record 2012 Sales and EPS; 4Q Sales of $684.6
  million; Full Year Sales of $2.9 billion; 4Q Operating income increase of
 4.1%; Adjusted operating income increase of 10.2%; 4Q EPS of $0.74, $0.79 as
             adjusted; Full Year EPS of $3.06, $3.16 as adjusted

PR Newswire

CLEVELAND, Feb. 15, 2013

CLEVELAND, Feb. 15, 2013 /PRNewswire/ --

Fourth Quarter and Full Year 2012 Highlights
  oSales were $684.6 million in the Fourth Quarter 2012; Sales were $2.9
    billion for the Full year 2012, an increase of 5.9% from 2011
  oOperating income increased 4.1% to $85.7 million, or 12.5% of sales, from
    $82.4 million, or 11.9% of sales, in the Fourth Quarter 2011; Adjusted
    operating income increased 10.2% to $90.7 million, or 13.3% of sales
  oOperating income increased 22.0% to $362.1 million, or 12.7% of sales,
    from $296.7 million, or 11.0% of sales, in the Full year 2011; Adjusted
    operating income increased 25.5% to $372.8 million, or 13.1% of sales
  oNet income increased 7.5% to $62.1 million, or $0.74 per diluted share,
    from $57.7 million, or $0.68 per diluted share, in the Fourth Quarter
    2011; Adjusted net income increased 14.2% to $65.9 million, or $0.79 per
    diluted share
  oNet income increased 18.5% to $257.4 million, or $3.06 per diluted share,
    from $217.2 million, or $2.56 per diluted share, in the Full year 2011;
    Adjusted net income increased 25.0% to $265.8 million, or $3.16 per
    diluted share from $212.6 million, or $2.51 per diluted share
  oNet cash provided by operating activities in the Fourth Quarter 2012
    increased $21.0 million, or 33.3%, to $84.1 million; Net cash provided by
    operating activities in the Full year 2012 increased $134.0 million, or
    69.2%, to $327.5 million

Lincoln Electric Holdings,Inc. (the "Company") (Nasdaq: LECO) today reported
fourth quarter 2012 net income of $62.1 million, or $0.74 per diluted share.
Adjusted net income was $65.9 million, or $0.79 per diluted share, compared to
adjusted net income of $57.7 million, or $0.68 per diluted share, in the
comparable 2011 period.

Sales were $684.6 million in the fourth quarter 2012 versus $694.5 million in
the comparable 2011 period, a decrease of 1.4%. Operating income for the
fourth quarter increased $3.3 million to $85.7 million, or 12.5% of sales,
from $82.4 million, or 11.9% of sales, in the comparable 2011 period. The
effective tax rate for the fourth quarter 2012 was 29.3% compared with 30.8%
in the same period of 2011.

Sales for the twelve months ended December 31, 2012 were $2.9 billion versus
$2.7 billion in 2011, an increase of 5.9%. Operating income for the twelve
months ended December 31, 2012 increased $65.4 million to $362.1 million, or
12.7% of sales, from $296.7 million, or 11.0% of sales, in2011.

Net income for the twelve months ended December 31, 2012 was $257.4 million,
or $3.06 per diluted share, compared with net income of $217.2 million, or
$2.56 per diluted share, in 2011. Adjusted net income was $265.8 million, or
$3.16 per diluted share, compared to adjusted net income of $212.6 million, or
$2.51 per diluted share, in 2011. The effective tax rate for the twelve
months ended December 31, 2012 was 30.4% compared with 28.0% in 2011. The
twelve months ended December 31, 2011 included a favorable $4.8 million tax
adjustment for tax audit settlements.

"Our 2012 sales and earnings per share represent the highest in the Company's
118 year history," said John M. Stropki, Chairman of the Board. "We are also
pleased to report that we expanded margins, significantly increased return on
invested capital and generated record cash flows.

"As we head into 2013, we continue to be cautious based on the uncertain
global macroeconomic environment. We expect to see slower year-over-year
overall growth in at least the first half of 2013; however, we remain very
confident in our ability to execute our long-term strategic initiatives even
in these challenging times."

Christopher L. Mapes, President and Chief Executive Officer added, "The goals
set in our '2020 Vision' remain a priority, with our focus on achieving
significant earnings growth and superior returns on invested capital. We
continue to explore attractive acquisitions that will shape our product
portfolio and grow our global reach, invest in new product development and
expand our global commercial infrastructure. Our continued attention to
improvement in operating results and execution of our global growth strategies
keep us well positioned to achieve our long-term goals."

Net cash provided by operating activities increased $21.0 million to $84.1
million in the fourth quarter from $63.1 million for the comparable period in
2011. Fourth quarter cash flows from operations were reduced by a $33.4
million deposit related to a Canadian income tax assessment. During the
quarter, the Company returned $51.5 million to shareholders through the
payment of $30.6 million in dividends and the repurchase of $20.9 million, or
455,518 of the Company's common shares, for treasury. Dividends paid during
the period included a December 28, 2012 dividend payment, which would normally
have been paid in January 2013.The Company also invested $81.8 million in
acquisitions and voluntarily contributed $10.1 million to its U.S. pension
plans during the quarter.

Net cash provided by operating activities increased $134.0 million to $327.5
million in the twelve months ended December 31, 2012 from $193.5 million in
2011. The 2012 cash flows from operations was reduced by a $89.4 million
deposit related to a Canadian income tax assessment. During the period, the
Company repaid its $80.0 million senior unsecured note. The Company also
returned $154.1 million to shareholders through the payment of $73.1 million
in dividends and the repurchase of $81.0 million, or 1,797,502 of the
Company's common shares, for treasury during the period. The Company also
invested $134.6 million in acquisitions and voluntarily contributed $63.4
million to its U.S. pension plans.

The Company's Board of Directors declared a quarterly cash dividend of $0.20
per share, which was paid on December 28, 2012 to holders of record on
December 17, 2012.

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

A conference call to discuss fourth quarter 2012 financial results is
scheduled for today, Friday, February15, 2013, at 10:00a.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
oxy-fuel 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 19
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 Form10-K.

Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Income
                                      Three months ended December 31, 2012              Fav (Unfav) to Prior
                                                                                        Year
                                      2012         %ofSales  2011         %ofSales  $          %
Net sales                             $ 684,648    100.0%      $ 694,513    100.0%      $ (9,865)  (1.4%)
Cost of goods sold                    471,616      68.9%       500,170      72.0%       28,554     5.7%
Gross profit                          213,032      31.1%       194,343      28.0%       18,689     9.6%
Selling, general& administrative     122,290      17.9%       111,981      16.1%       (10,309)   (9.2%)
expenses
Rationalizationandassetimpairment  5,037        0.7%        —            —           (5,037)    (100.0%)
 charges(gains)
Operating income                      85,705       12.5%       82,362       11.9%       3,343      4.1%
Interest income                       1,340        0.2%        685          0.1%        655        95.6%
Equity earnings in affiliates         743          0.1%        1,352        0.2%        (609)      (45.0%)
Other income                          670          0.1%        695          0.1%        (25)       (3.6%)
Interest expense                      (853)        (0.1%)      (1,667)      (0.2%)      814        48.8%
Income before income taxes            87,605       12.8%       83,427       12.0%       4,178      5.0%
Income taxes                          25,639       3.7%        25,736       3.7%        97         0.4%
Effective tax rate                    29.3%                    30.8%                    1.5%
Net income including non-controlling  61,966       9.1%        57,691       8.3%        4,275      7.4%
 interests
Non-controlling interests in
subsidiaries'                         (118)        —           (42)         —           (76)       (181.0%)
 loss
Net income                            $ 62,084     9.1%        $ 57,733     8.3%        $ 4,351    7.5%
Basic earnings per share              $ 0.75                   $ 0.69                   $ 0.06     8.7%
Diluted earnings per share            $ 0.74                   $ 0.68                   $ 0.06     8.8%
Weighted average shares (basic)       82,651                   83,384
Weighted average shares (diluted)     83,677                   84,384
                                      Twelve months ended December 31,                  Fav (Unfav) to Prior
                                                                                        Year
                                      2012         % of Sales  2011         % of Sales  $          %
Net sales                             $ 2,853,367  100.0%      $ 2,694,609  100.0%      $ 158,758  5.9%
Cost of goods sold                    1,986,711    69.6%       1,957,872    72.7%       (28,839)   (1.5%)
Gross profit                          866,656      30.4%       736,737      27.3%       129,919    17.6%
Selling, general& administrative     495,221      17.4%       439,775      16.3%       (55,446)   (12.6%)
expenses
Rationalizationandassetimpairment  9,354        0.3%        282          —           (9,072)    (3,217.0%)
 charges(gains)
Operating income                      362,081      12.7%       296,680      11.0%       65,401     22.0%
Interest income                       3,988        0.1%        3,121        0.1%        867        27.8%
Equity earnings in affiliates         5,007        0.2%        5,385        0.2%        (378)      (7.0%)
Other income                          2,685        0.1%        2,849        0.1%        (164)      (5.8%)
Interest expense                      (4,191)      (0.1%)      (6,704)      (0.2%)      2,513      37.5%
Income before income taxes            369,570      13.0%       301,331      11.2%       68,239     22.6%
Income taxes                          112,354      3.9%        84,318       3.1%        (28,036)   (33.3%)
Effective tax rate                    30.4%                    28.0%                    (2.4%)
Net income including non-controlling  257,216      9.0%        217,013      8.1%        40,203     18.5%
 interests
Non-controlling interests in
subsidiaries'                         (195)        —           (173)        —           (22)       (12.7%)
 loss
Net income                            $ 257,411    9.0%        $ 217,186    8.1%        $ 40,225   18.5%
Basic earnings per share              $ 3.10                   $ 2.60                   $ 0.50     19.2%
Diluted earnings per share            $ 3.06                   $ 2.56                   $ 0.50     19.5%
Weighted average shares (basic)       83,087                   83,681
Weighted average shares (diluted)     84,175                   84,708



Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Non-GAAP Financial Measures
                     Three months ended December  Twelve months ended December
                     31,                          31,
                     2012           2011          2012            2011
Operating income as  $  85,705      $  82,362     $  362,081      $  296,680
reported
Special items
(pre-tax):
 Rationalization
and asset            5,037          —             9,354           282
impairment charges
(gains)(1)
 Venezuelan
statutory severance  —              —             1,381           —
obligation(2)
Adjusted operating   $  90,742      $  82,362     $  372,816      $  296,962
income (4)
Net income as        $  62,084      $  57,733     $  257,411      $  217,186
reported
Special items
(after-tax):
 Rationalization
and asset            3,823          —             7,442           237
impairment charges
(gains)(1)
 Venezuelan
statutory severance  —              —             906             —
obligation(2)
Adjustment for tax
audit settlements    —              —             —               (4,844)
(3)
Adjusted net income  $  65,907      $  57,733     $  265,759      $  212,579
(4)
Diluted earnings
per share as         $  0.74        $  0.68       $  3.06         $  2.56
reported
Special items        0.05           —             0.10            (0.05)
Adjusted diluted
earnings per share   $  0.79        $  0.68       $  3.16         $  2.51
(4)
Weighted average     83,677         84,384        84,175          84,708
shares (diluted)

    The three and twelve months ended December 31, 2012 include net charges
    associated with severance, impairment and other costs from the
    consolidation of manufacturing operations initiated in 2012
(1) partiallyoffset by gains related to the sale of assets at rationalized
    operations. The twelve months ended December 31, 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.
(2) Represents an unfavorable adjustment due to a change in 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
(4) 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.



Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)
Balance Sheet Highlights
SelectedConsolidatedBalanceSheetData      December 31,      December 31,
                                              2012              2011
Cash and cash equivalents                     $   286,464       $  361,101
Total current assets                          1,132,816         1,219,270
Property, plant and equipment, net            486,236           470,451
Total assets                                  2,089,863         1,976,776
Total current liabilities                     440,267           471,042
Short-term debt (1)                           18,676            101,418
Long-term debt                                1,599             1,960
Total equity                                  1,358,321         1,193,242
Net Operating Working Capital                 December 31,      December 31,
                                              2012              2011
Accounts receivable                           $   360,662       $  386,197
Inventory                                     364,890           373,238
Trade accounts payable                        209,647           176,312
Net operating working capital                 $   515,905       $  583,123
Net operating working capital to net sales    18.8%             21.0%
(2)
Invested Capital                              December 31,      December 31,
                                              2012              2011
Short-term debt (1)                           $   18,676        $  101,418
Long-term debt                                1,599             1,960
Total debt                                    20,275            103,378
Total equity                                  1,358,321         1,193,242
Invested capital                              $   1,378,596     $  1,296,620
Total debt / invested capital                 1.5%              8.0%
Return on invested capital (3)                18.7%             16.9%

(1) Includes current portion of long-term debt.
(2) Net operating working capital to net sales is defined as net operating
    working capital divided by annualized rolling three months of sales.
(3) Return on invested capital is defined as rolling 12 months of earnings
    excluding tax-effected interest divided by invested capital.



Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
                                               Three months ended December 31,
                                               2012              2011
OPERATING ACTIVITIES:
Net income                                     $   62,084        $  57,733
Non-controlling interests in subsidiaries'     (118)             (42)
loss
Net income including non-controlling           61,966            57,691
interests
Adjustments to reconcile Net income including
non-controlling interests to Net cash

provided by operating activities:
Rationalization and asset impairment charges   1,383             —
Depreciation and amortization                  17,114            14,962
Equity loss (earnings) in affiliates, net      1,609             (655)
Other non-cash items, net                      11,423            16,508
Changes in operating assets and liabilities,
net of effects from acquisitions:
Decrease in accounts receivable                44,009            4,769
Decrease in inventories                        35,118            47,048
Increase (decrease) in trade accounts payable  17,292            (26,316)
Net change in other current assets and         (61,032)          (49,103)
liabilities
Decrease in accrued pensions                   (10,729)          (1,286)
Net change in other long-term assets and       (34,010)          (478)
liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES      84,143            63,140
INVESTING ACTIVITIES:
Capital expenditures                           (13,408)          (15,063)
Acquisition of businesses, net of cash         (81,751)          (3,889)
acquired
Proceeds from sale of property, plant and      849               243
equipment
NET CASH USED BY INVESTING ACTIVITIES          (94,310)          (18,709)
FINANCING ACTIVITIES:
Net change in borrowings                       (1,302)           10,827
Proceeds from exercise of stock options        6,081             4,140
Tax benefit from exercise of stock options     2,225             589
Purchase of shares for treasury                (20,863)          (9,367)
Cash dividends paid to shareholders            (30,602)          (12,934)
Other financing activities                     —                 3,346
NET CASH USED BY FINANCING ACTIVITIES          (44,461)          (3,399)
Effect of exchange rate changes on Cash and    417               (1,391)
cash equivalents
(DECREASE) INCREASE IN CASH AND CASH           (54,211)          39,641
EQUIVALENTS
Cash and cash equivalents at beginning of      340,675           321,460
period
Cash and cash equivalents at end of period     $   286,464       $  361,101
Cash dividends paid per share                  $   0.37          $  0.155



Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
                                              Twelve months ended December 31,
                                              2012               2011
OPERATING ACTIVITIES:
Net income                                    $   257,411        $  217,186
Non-controlling interests in subsidiaries'    (195)              (173)
loss
Net income including non-controlling          257,216            217,013
interests
Adjustments to reconcile Net income
including non-controlling interests to Net
cash

provided by operating activities:
Rationalization and asset impairment charges  1,740              23
Depreciation and amortization                 65,334             62,051
Equity loss (earnings) in affiliates, net     160                (1,971)
Other non-cash items, net                     40,582             44,564
Changes in operating assets and liabilities,
net of effects from acquisitions:
Decrease (increase) in accounts receivable    57,759             (67,518)
Decrease (increase) in inventories            28,286             (51,679)
Increase in trade accounts payable            16,110             8,672
Net change in other current assets and        12,381             17,981
liabilities
Decrease in accrued pensions                  (65,201)           (31,776)
Net change in other long-term assets and      (86,883)           (3,842)
liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES     327,484            193,518
INVESTING ACTIVITIES:
Capital expenditures                          (52,715)           (65,813)
Acquisition of businesses, net of cash        (134,602)          (66,229)
acquired
Proceeds from sale of property, plant and     1,387              1,246
equipment
Other investing activities                    (1,541)            —
NET CASH USED BY INVESTING ACTIVITIES         (187,471)          (130,796)
FINANCING ACTIVITIES:
Net change in borrowings                      (89,303)           7,949
Proceeds from exercise of stock options       18,776             11,351
Tax benefit from exercise of stock options    7,819              2,916
Purchase of shares for treasury               (81,018)           (36,997)
Cash dividends paid to shareholders           (73,112)           (51,935)
Other financing activities                    —                  3,346
NET CASH USED BY FINANCING ACTIVITIES         (216,838)          (63,370)
Effect of exchange rate changes on Cash and   2,188              (4,444)
cash equivalents
DECREASE IN CASH AND CASH EQUIVALENTS         (74,637)           (5,092)
Cash and cash equivalents at beginning of     361,101            366,193
period
Cash and cash equivalents at end of period    $   286,464        $  361,101
Cash dividends paid per share                 $   0.88           $  0.62



Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
               North                                 South      TheHarris
                            Europe     AsiaPacific                         Corporate/
               America                               America    Products                  Consolidated
                            Welding    Welding                              Eliminations
               Welding                               Welding    Group
Three months
ended

December
31, 2012
Net sales      $ 392,939    $ 107,507  $  70,223     $ 39,931   $  74,048   $  —          $  684,648
Inter-segment  29,676       3,870      3,188         —          1,944       (38,678)      —
sales
Total          $ 422,615    $ 111,377  $  73,411     $ 39,931   $  75,992   $  (38,678)   $  684,648
EBIT (1)       $ 75,925     $ 3,914    $  (5,090)    $ 4,829    $  5,544    $  1,996      $  87,118
As a percent
of total       18.0%        3.5%       (6.9%)        12.1%      7.3%                      12.7%
sales
Special items
charge (gain)  $ 273        $ 1,068    $  3,696      $ —        $  —        $  —          $  5,037
(2)
EBIT, as       $ 76,198     $ 4,982    $  (1,394)    $ 4,829    $  5,544    $  1,996      $  92,155
adjusted (4)
As a percent
of total       18.0%        4.5%       (1.9%)        12.1%      7.3%                      13.5%
sales
Three months
ended

December
31, 2011
Net sales      $ 361,905    $ 126,942  $  88,204     $ 40,673   $  76,789   $  —          $  694,513
Inter-segment  30,895       4,047      4,893         120        1,761       (41,716)      —
sales
Total          $ 392,800    $ 130,989  $  93,097     $ 40,793   $  78,550   $  (41,716)   $  694,513
EBIT (1)       $ 69,732     $ 8,904    $  (652)      $ 3,295    $  4,401    $  (1,271)    $  84,409
As a percent
of total       17.8%        6.8%       (0.7%)        8.1%       5.6%                      12.2%
sales
Special items  $ —          $ —        $  —          $ —        $  —        $  —          $  —
charge (gain)
EBIT, as       $ 69,732     $ 8,904    $  (652)      $ 3,295    $  4,401    $  (1,271)    $  84,409
adjusted (4)
As a percent
of total       17.8%        6.8%       (0.7%)        8.1%       5.6%                      12.2%
sales
Twelve months
ended

December
31, 2012
Net sales      $ 1,580,818  $ 452,227  $  324,482    $ 161,483  $  334,357  $  —          $  2,853,367
Inter-segment  131,062      16,048     14,829        38         8,549       (170,526)     —
sales
Total          $ 1,711,880  $ 468,275  $  339,311    $ 161,521  $  342,906  $  (170,526)  $  2,853,367
EBIT (1)       $ 292,243    $ 33,765   $  2,254      $ 16,920   $  29,477   $  (4,886)    $  369,773
As a percent
of total       17.1%        7.2%       0.7%          10.5%      8.6%                      13.0%
sales
Special items
charge (gain)  $ 827        $ 3,534    $  4,993      $ 1,381    $  —        $  —          $  10,735
(2)
EBIT, as       $ 293,070    $ 37,299   $  7,247      $ 18,301   $  29,477   $  (4,886)    $  380,508
adjusted (4)
As a percent
of total       17.1%        8.0%       2.1%          11.3%      8.6%                      13.3%
sales
Twelve months
ended

December
31, 2011
Net sales      $ 1,309,499  $ 508,692  $  376,276    $ 156,684  $  343,458  $  —          $  2,694,609
Inter-segment  136,314      17,422     15,614        494        8,496       (178,340)     —
sales
Total          $ 1,445,813  $ 526,114  $  391,890    $ 157,178  $  351,954  $  (178,340)  $  2,694,609
EBIT (1)       $ 227,924    $ 35,779   $  2,739      $ 12,895   $  25,151   $  426        $  304,914
As a percent
of total       15.8%        6.8%       0.7%          8.2%       7.1%                      11.3%
sales
Special items
charge (gain)  $ —          $ 392      $  (110)      $ —        $  —        $  —          $  282
(3)
EBIT, as       $ 227,924    $ 36,171   $  2,629      $ 12,895   $  25,151   $  426        $  305,196
adjusted (4)
As a percent
of total       15.8%        6.9%       0.7%          8.2%       7.1%                      11.3%
sales

(1) EBIT is defined as Operating income plus Equity earnings in affiliates and
    Other income.
    Special items in the three and twelve month periods ended December31,
    2012 include rationalization and asset impairment charges (gains).
(2) Special items in the twelve months ended December 31, 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
(4) performance is 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 December 31st Change in Net Sales by Segment
                         Change in Net Sales due to:
              NetSales                                     Foreign    NetSales
                         Volume      Acquisitions  Price
              2011                                          Exchange   2012
Operating
Segments
North
America       $ 361,905  $ (2,722)   $   26,469    $ 6,072  $ 1,215    $ 392,939
Welding
Europe        126,942    (15,952)    —             (2,252)  (1,231)    107,507
Welding
Asia Pacific  88,204     (18,138)    —             (429)    586        70,223
Welding
South
America       40,673     (1,700)     —             2,894    (1,936)    39,931
Welding
The Harris
Products      76,789     (2,058)     —             704      (1,387)    74,048
Group
Consolidated  $ 694,513  $ (40,570)  $   26,469    $ 6,989  $ (2,753)  $ 684,648
% Change
North
America                  (0.8%)      7.3%          1.7%     0.3%       8.6%
Welding
Europe                   (12.6%)     —             (1.8%)   (1.0%)     (15.3%)
Welding
Asia Pacific             (20.6%)     —             (0.5%)   0.7%       (20.4%)
Welding
South
America                  (4.2%)      —             7.1%     (4.8%)     (1.8%)
Welding
The Harris
Products                 (2.7%)      —             0.9%     (1.8%)     (3.6%)
Group
Consolidated             (5.8%)      3.8%          1.0%     (0.4%)     (1.4%)



Twelve Months Ended December 31st Change in Net Sales by Segment
                           Change in Net Sales due to:
              Net Sales                                       Foreign     Net Sales
                           Volume     Acquisitions  Price
              2011                                            Exchange    2012
Operating
Segments
North
America       $ 1,309,499  $ 112,898  $  124,830    $ 37,124  $ (3,533)   $ 1,580,818
Welding
Europe        508,692      (36,199)   8,322         4,874     (33,462)    452,227
Welding
Asia Pacific  376,276      (54,289)   —             1,646     849         324,482
Welding
South
America       156,684      (1,284)    —             15,584    (9,501)     161,483
Welding
The Harris
Products      343,458      13,683     —             (13,427)  (9,357)     334,357
Group
Consolidated  $ 2,694,609  $ 34,809   $  133,152    $ 45,801  $ (55,004)  $ 2,853,367
% Change
North
America                    8.6%       9.5%          2.8%      (0.3%)      20.7%
Welding
Europe                     (7.1%)     1.6%          1.0%      (6.6%)      (11.1%)
Welding
Asia Pacific               (14.4%)    —             0.4%      0.2%        (13.8%)
Welding
South
America                    (0.8%)     —             9.9%      (6.1%)      3.1%
Welding
The Harris
Products                   4.0%       —             (3.9%)    (2.7%)      (2.6%)
Group
Consolidated               1.3%       4.9%          1.7%      (2.0%)      5.9%

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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