Lincoln Electric Reports Fourth Quarter and Full Year 2013 Results

      Lincoln Electric Reports Fourth Quarter and Full Year 2013 Results

Q4 EPS Increases 45% to $1.07, Adjusted EPS Increases 38% to $1.09

Full Year 2013 EPS Increases 16% to $3.54, Adjusted EPS Increases 19% to $3.77

PR Newswire

CLEVELAND, Feb. 14, 2014

CLEVELAND, Feb. 14, 2014 /PRNewswire/ --

Fourth Quarter and Full Year Highlights vs. Prior Year
  oQ4 Operating income up 39% to $119 million, or 16.6% of sales on a 4%
    increase in sales
  oQ4 Adjusted operating income up 32% to $120 million and up 350 bps to
    16.8% of sales
  oQ4 Net income up 42% to $88 million; Adjusted net income $89 million,
    including $18 million from Venezuela
  oFY2013 Net income up 14% to $294 million; Adjusted net income $313
    million, including $38 million from Venezuela
  oQ4 Cash flow from operations up 15% to $97 million in the fourth quarter;
    up 4% to $339 million in 2013
  oReturned $71 million to shareholders through share repurchases and
    dividends in Q4; returned $217 million in 2013

Lincoln Electric Holdings,Inc. (the "Company") (Nasdaq: LECO) today reported
fourth quarter 2013 net income of $88.3 million, or $1.07 per diluted share.
Net income was $62.1 million, or $0.74 per diluted share, in the comparable
2012 period. Adjusted net income was $89.2 million, or $1.09 per diluted
share, compared to adjusted net income of $65.9 million, or $0.79 per diluted
share, in the comparable 2012 period.

Sales increased 4.4% to $714.8 million in the fourth quarter 2013 versus
$684.6 million in the comparable 2012 period. This increase reflects higher
volumes and acquisitions, which was partially offset by unfavorable foreign
exchange translation. Operating income for the fourth quarter increased 38.7%
to $118.9 million, or 16.6% of sales, from $85.7 million, or 12.5% of sales,
in the comparable 2012 period. On an adjusted basis, operating income
increased 32.1% to $119.9 million or 16.8% of sales, compared with $90.7
million, or 13.3% of sales in 2012.

The Company's Board of Directors declared a quarterly cash dividend of $0.23
per share, which was paid on January 15, 2014 to holders of record on December
31, 2013. During the quarter, the Company returned $54.2 million to
shareholders through the repurchase of 767,531 of the Company's common
shares.

Christopher L. Mapes, Chairman, President and Chief Executive Officer stated,
"We are pleased to report solid fourth quarter and full year 2013 results that
reflect strong execution of our initiatives, even in challenging and dynamic
market conditions. Our focus on favorable mix, optimized processes, and a
strong pipeline of new products resulted in margin expansion, solid cash flow
generation and accelerated returns to shareholders. Most notably, we achieved
a 120 basis point improvement in working capital efficiency to 17.6% of sales,
record cash flows from operations, increased our return on invested capital to
18.9%, and returned over $217 million to shareholders through dividends and
share repurchases.

Looking ahead to 2014, we remain focused on serving our customers with
innovative solutions, achieving margin improvements through the continued
implementation of our commercial and operational initiatives and expect to
benefit from modest end market improvements."

Full Year 2013 Summary

Sales for 2013 were steady at $2.9 billion versus the 2012 period, reflecting
a 3.2% increase from acquisitions offset by reduced volumes and unfavorable
foreign exchange. Operating income increased 12.4% to $407.0 million, or
14.3% of sales, from $362.1 million, or 12.7% of sales in 2012.

Net income for 2013 was $293.8 million, or $3.54 per diluted share. Net
income was $257.4 million, or $3.06 per diluted share, in 2012. Adjusted net
income was $313.2 million, or $3.77 per diluted share, compared to adjusted
net income of $265.8 million, or $3.16 per diluted share, in 2012.

During the twelve months ended December 31, 2013, the Company made voluntary
contributions of $75.2 million to its U.S. pension plans and returned $217.2
million to shareholders through the payment of $49.3 million in dividends and
the repurchase of $167.9 million, or 2,721,903 of the Company's common
shares. The Company also invested $53.2 million in acquisitions during the
year.

Venezuela

Venezuela is a highly inflationary economy under U.S. generally accepted
accounting principles ("GAAP"). This highly inflationary economy drove higher
prices and earnings in our Venezuelan operation during 2013. In addition,
financial results were impacted by an after-tax charge of $12.2 million
related to the devaluation of the Venezuelan currency during the first half of
2013.

Fourth quarter 2013 net sales included $40.9 million from Venezuela. Net
income for the quarter included $17.7 million, or $0.22 per diluted share,
from Venezuela. On a full year 2013 basis, net sales included $109.1 million
from Venezuela. Net income for the full year included $25.6 million, or $0.31
per diluted share, from Venezuela. Adjusted net income for the full year
included $37.8 million, or $0.46 per diluted share, from Venezuela.

The impact to earnings of a further devaluation of the Venezuelan currency
will be dependent upon movements in the applicable exchange rates and the
amount of monetary assets and liabilities on the Venezuelan operation's
balance sheet. The bolivar-denominated monetary net asset position was $38.6
million at December31, 2013 which includes $50.6 million of cash and cash
equivalents translated at the official exchange rate of 6.3 bolivars to the
U.S. dollar. If in the future the Company were to convert bolivars at a rate
other than the official exchange rate or the official exchange rate is
revised, the Company may realize a loss to earnings. For example, a future
devaluation in the Venezuelan currency to a rate of 12.6 would result in the
Company realizing additional charges of approximately $3.0 million to Cost of
goods sold based on current inventory levels and $20.0 million to Selling,
general and administrative expenses based upon the bolivar-denominated
monetary net asset position at December31, 2013.

The Company expects that the operating environment in Venezuela will continue
to be a challenge due to continued economic uncertainty and the limited
ability to convert bolivars to U.S. dollars. The various restrictions on the
Company's ability to effectively manage the Venezuelan operations could affect
the ability to pay obligations and maintain normal production levels.

Webcast Information

A conference call to discuss fourth quarter 2013 financial results will be
webcast live today, Friday, February14, 2014, at 10:00a.m., Eastern Time.
This webcast is accessible at http://ir.lincolnelectric.com. Listeners should
go to the web site prior to the call to register and download and install any
necessary audio software. A replay of the webcast will be available on the
Company's web site.

Investors who are unable to access the webcast may listen to the conference
call live by telephone by dialing (877) 344-3899 (domestic) or (315) 625-3087
(international) and use confirmation code 36445529. A telephonic replay will
be available starting at 1:00 p.m. Eastern Time today and will end on Friday,
February 28, 2014 at 11:59 p.m. Eastern Time. To listen to the replay, please
dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use
confirmation code 36445529.

Financial results for the fourth quarter 2013 can also be obtained at
http://ir.lincolnelectric.com.

About Lincoln Electric

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 48
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.

Non-GAAP Information

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.

Forward-Looking Statements

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; interest rates;
currency exchange rates and devaluations, including in highly inflationary
countries such as Venezuela; adverse outcome of pending or potential
litigation; actual costs of the Company's rationalization plans; 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,                       Fav (Unfav) to Prior
                                                                                            Year
                                      2013           %ofSales  2012           %ofSales  $           %
Net sales                             $ 714,791      100.0   %   $ 684,648      100.0   %   $ 30,143    4.4      %
Cost of goods sold                    471,744        66.0    %   471,616        68.9    %   (128)       —
Gross profit                          243,047        34.0    %   213,032        31.1    %   30,015      14.1     %
Selling, general& administrative     123,883        17.3    %   122,290        17.9    %   (1,593)     (1.3%)
expenses
Rationalizationandassetimpairment  259            —           5,037          0.7     %   4,778       94.9     %
charges
Operating income                      118,905        16.6    %   85,705         12.5    %   33,200      38.7     %
Interest income                       868            0.1     %   1,340          0.2     %   (472)       (35.2%)
Equity earnings in affiliates         1,119          0.2     %   743            0.1     %   376         50.6     %
Other income                          1,053          0.1     %   670            0.1     %   383         57.2     %
Interest expense                      (557)          (0.1%)      (853)          (0.1%)      296         34.7     %
Income before income taxes            121,388        17.0    %   87,605         12.8    %   33,783      38.6     %
Income taxes                          33,323         4.7     %   25,639         3.7     %   (7,684)     (30.0%)
Effective tax rate                    27.5        %              29.3        %              1.8      %
Net income including non-controlling  88,065         12.3    %   61,966         9.1     %   26,099      42.1     %
interests
Non-controlling interests in          (259)          —           (118)          —           (141)       (119.5%)
subsidiaries' loss
Net income                            $ 88,324       12.4    %   $ 62,084       9.1     %   $ 26,240    42.3     %
Basic earnings per share              $ 1.09                     $ 0.75                     $ 0.34      45.3     %
Diluted earnings per share            $ 1.07                     $ 0.74                     $ 0.33      44.6     %
Weighted average shares (basic)       81,132                     82,651
Weighted average shares (diluted)     82,184                     83,677
                                      Twelve months ended December 31,                      Fav (Unfav) to Prior
                                                                                            Year
                                      2013           % of Sales  2012           % of Sales  $           %
Net sales                             $ 2,852,671    100.0   %   $ 2,853,367    100.0   %   $ (696)     —
Cost of goods sold                    1,910,017      67.0    %   1,986,711      69.6    %   76,694      3.9      %
Gross profit                          942,654        33.0    %   866,656        30.4    %   75,998      8.8      %
Selling, general& administrative     527,206        18.5    %   495,221        17.4    %   (31,985)    (6.5%)
expenses
Rationalizationandassetimpairment  8,463          0.3     %   9,354          0.3     %   891         9.5      %
charges
Operating income                      406,985        14.3    %   362,081        12.7    %   44,904      12.4     %
Interest income                       3,320          0.1     %   3,988          0.1     %   (668)       (16.8%)
Equity earnings in affiliates         4,806          0.2     %   5,007          0.2     %   (201)       (4.0%)
Other income                          4,194          0.1     %   2,685          0.1     %   1,509       56.2     %
Interest expense                      (2,864)        (0.1%)      (4,191)        (0.1%)      1,327       31.7     %
Income before income taxes            416,441        14.6    %   369,570        13.0    %   46,871      12.7     %
Income taxes                          124,754        4.4     %   112,354        3.9     %   (12,400)    (11.0%)
Effective tax rate                    30.0        %              30.4        %              0.4      %
Net income including non-controlling  291,687        10.2    %   257,216        9.0     %   34,471      13.4     %
interests
Non-controlling interests in          (2,093)        (0.1%)      (195)          —           (1,898)     (973.3%)
subsidiaries' loss
Net income                            $ 293,780      10.3    %   $ 257,411      9.0     %   $ 36,369    14.1     %
Basic earnings per share              $ 3.58                     $ 3.10                     $ 0.48      15.5     %
Diluted earnings per share            $ 3.54                     $ 3.06                     $ 0.48      15.7     %
Weighted average shares (basic)       81,978                     83,087
Weighted average shares (diluted)     83,042                     84,175



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,
                     2013            2012         2013            2012
Operating income as  $  118,905      $  85,705    $  406,985      $  362,081
reported
Special items
(pre-tax):
Rationalization and
asset impairment     259             5,037        8,463           9,354
charges(1)
Loss on the sale of  705             —            705             —
land (2)
Venezuelan currency  —               —            12,198          —
devaluation(3)
Venezuelan
statutory severance  —               —            —               1,381
obligation(4)
Adjusted operating   $  119,869      $  90,742    $  428,351      $  372,816
income (6)
Net income as        $  88,324       $  62,084    $  293,780      $  257,411
reported
Special items
(after-tax):
Rationalization and
asset impairment     223             3,823        7,573           7,442
charges(1)
Loss on the sale of  705             —            705             —
land (2)
Venezuelan currency  —               —            12,198          —
devaluation(3)
Venezuelan
statutory severance  —               —            —               906
obligation(4)
Special items
attributable to
non-controlling      (47)            —            (1,068)         —

interests (5)
Adjusted net income  $  89,205       $  65,907    $  313,188      $  265,759
(6)
Diluted earnings
per share as         $  1.07         $  0.74      $  3.54         $  3.06
reported
Special items        0.02            0.05         0.23            0.10
Adjusted diluted
earnings per share   $  1.09         $  0.79      $  3.77         $  3.16
(6)
Weighted average     82,184          83,677       83,042          84,175
shares (diluted)
(1) The three and twelve months ended December 31, 2013 include net charges
associated with long-livedasset impairments and severance and other related
costs from the consolidation of manufacturingoperations partially offset by
gains related to the sale of assets at rationalized operations.
(2) Represents the loss realized related to the sale of land.
(3) Represents the impact of the devaluation of the Venezuelan currency.
(4) Represents an unfavorable adjustment due to a change in Venezuelan labor
law, which provides forincreased employee severance obligations.
(5) The three months ended December 31, 2013 represents the portion of land
sale attributable to non-controllinginterests. The three and twelve months
ended December 31, 2013 include the portion of land sale and thelong-lived
asset impairments attributable to non-controlling interests.
(6) Adjusted operating income, Adjusted net income and Adjusted diluted
earnings per share are non-GAAPfinancial measures that management believes
are important to investors to evaluate and compare theCompany's financial
performance from period to period. Management uses this information in
assessing andevaluating the Company's underlying operating performance.
Non-GAAP financial measures should be read inconjunction with the GAAP
financial measures, as non-GAAP measures are a supplement to, and not
areplacement for, GAAP financial measures.



Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)
Balance Sheet Highlights
SelectedConsolidatedBalanceSheetData       December 31,      December 31,
                                               2013              2012
Cash and cash equivalents                      $  299,825        $ 286,464
Total current assets                           1,130,775         1,132,816
Property, plant and equipment, net             484,005           486,236
Total assets                                   2,151,867         2,089,863
Total current liabilities                      456,779           440,267
Short-term debt (1)                            15,296            18,676
Long-term debt                                 3,791             1,599
Total equity                                   1,530,688         1,358,321
Net Operating Working Capital                  December 31,      December 31,
                                               2013              2012
Accounts receivable                            $  367,134        $ 360,662
Inventory                                      349,963           364,890
Trade accounts payable                         212,799           209,647
Net operating working capital                  $  504,298        $ 515,905
Net operating working capital to net sales     17.6          %   18.8        %
(2)
Invested Capital                               December 31,      December 31,
                                               2013              2012
Short-term debt (1)                            $  15,296         $ 18,676
Long-term debt                                 3,791             1,599
Total debt                                     19,087            20,275
Total equity                                   1,530,688         1,358,321
Invested capital                               $  1,549,775      $ 1,378,596
Total debt / invested capital                  1.2           %   1.5         %
Return on invested capital (3)                 18.9          %   18.7        %
(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,
                                               2013              2012
OPERATING ACTIVITIES:
Net income                                     $   88,324        $  62,084
Non-controlling interests in subsidiaries'     (259)             (118)
loss
Net income including non-controlling           88,065            61,966
interests
Adjustments to reconcile Net income including
non-controlling interests to Net cash

 provided by operating activities:
Rationalization and asset impairment charges   43                1,383
Depreciation and amortization                  17,002            17,114
Equity (earnings) loss in affiliates, net      (347)             1,609
Pension expense                                7,513             8,849
Pension contributions and payments             (2,939)           (11,832)
Other non-cash items, net                      (296)             3,677
Changes in operating assets and liabilities,
net of effects from acquisitions:
Decrease in accounts receivable                12,545            44,009
Decrease in inventories                        23,199            35,118
Increase in trade accounts payable             33,497            17,292
Net change in other current assets and         (80,601)          (61,032)
liabilities
Net change in other long-term assets and       (878)             (34,010)
liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES      96,803            84,143
INVESTING ACTIVITIES:
Capital expenditures                           (16,324)          (13,408)
Acquisition of businesses, net of cash         (48,225)          (81,751)
acquired
Proceeds from sale of property, plant and      597               849
equipment
Other investing activities                     2,500             —
NET CASH USED BY INVESTING ACTIVITIES          (61,452)          (94,310)
FINANCING ACTIVITIES:
Net change in borrowings                       511               (1,302)
Proceeds from exercise of stock options        4,220             6,081
Excess tax benefits from stock-based           3,629             2,225
compensation
Purchase of shares for treasury                (54,238)          (20,863)
Cash dividends paid to shareholders            (16,290)          (30,602)
Transactions with non-controlling interests    (3,278)           —
NET CASH USED BY FINANCING ACTIVITIES          (65,446)          (44,461)
Effect of exchange rate changes on Cash and    (389)             417
cash equivalents
DECREASE IN CASH AND CASH EQUIVALENTS          (30,484)          (54,211)
Cash and cash equivalents at beginning of      330,309           340,675
period
Cash and cash equivalents at end of period     $   299,825       $  286,464
Cash dividends paid per share                  $   0.20          $  0.37



Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)
Condensed Consolidated Statements of Cash Flows
                                              Twelve months ended December 31,
                                              2013               2012
OPERATING ACTIVITIES:
Net income                                    $   293,780        $  257,411
Non-controlling interests in subsidiaries'    (2,093)            (195)
loss
Net income including non-controlling          291,687            257,216
interests
Adjustments to reconcile Net income
including non-controlling interests to Net
cash

 provided by operating activities:
Rationalization and asset impairment charges  5,092              1,740
Depreciation and amortization                 68,883             65,334
Equity (earnings) loss in affiliates, net     (1,660)            160
Pension expense                               29,774             35,439
Pension contributions and payments            (87,356)           (69,646)
Other non-cash items, net                     29,461             9,588
Changes in operating assets and liabilities,
net of effects from acquisitions:
(Increase) decrease in accounts receivable    (5,437)            57,759
Decrease in inventories                       13,310             28,286
Increase in trade accounts payable            794                16,110
Net change in other current assets and        (4,974)            12,381
liabilities
Net change in other long-term assets and      (680)              (86,883)
liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES     338,894            327,484
INVESTING ACTIVITIES:
Capital expenditures                          (76,015)           (52,715)
Acquisition of businesses, net of cash        (53,161)           (134,602)
acquired
Proceeds from sale of property, plant and     1,393              1,387
equipment
Other investing activities                    (1,717)            (1,541)
NET CASH USED BY INVESTING ACTIVITIES         (129,500)          (187,471)
FINANCING ACTIVITIES:
Net change in borrowings                      (1,840)            (89,303)
Proceeds from exercise of stock options       20,297             18,776
Excess tax benefits from stock-based          10,602             7,819
compensation
Purchase of shares for treasury               (167,879)          (81,018)
Cash dividends paid to shareholders           (49,277)           (73,112)
Transactions with non-controlling interests   (6,087)            —
NET CASH USED BY FINANCING ACTIVITIES         (194,184)          (216,838)
Effect of exchange rate changes on Cash and   (1,849)            2,188
cash equivalents
INCREASE (DECREASE) IN CASH AND CASH          13,361             (74,637)
EQUIVALENTS
Cash and cash equivalents at beginning of     286,464            361,101
period
Cash and cash equivalents at end of period    $   299,825        $  286,464
Cash dividends paid per share                 $   0.60           $  0.88



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, 2013
Net sales      $ 410,033      $ 111,874    $  63,170     $ 63,303     $ 66,411     $ —           $ 714,791
Inter-segment  27,385         6,046        2,327         11           2,396        (38,165)      —
sales
Total          $ 437,418      $ 117,920    $  65,497     $ 63,314     $ 68,807     $ (38,165)    $ 714,791
EBIT ^(1)      $ 83,902       $ 7,752      $  (792)      $ 25,187     $ 6,415      $ (1,387)     $ 121,077
As a percent
of total       19.2        %  6.6       %  (1.2%)        39.8      %  9.3       %                16.9        %
sales
Special items  $ (57)         $ 381        $  640        $ —          $ —          $ —           $ 964
charge ^(2)
EBIT, as       $ 83,845       $ 8,133      $  (152)      $ 25,187     $ 6,415      $ (1,387)     $ 122,041
adjusted ^(4)
As a percent
of total       19.2        %  6.9       %  (0.2%)        39.8      %  9.3       %                17.1        %
sales
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  $ 273          $ 1,068      $  3,696      $ —          $ —          $ —           $ 5,037
charge ^(3)
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
Twelve months ended December
31, 2013
Net sales      $ 1,652,769    $ 429,548    $  266,282    $ 195,895    $ 308,177    $ —           $ 2,852,671
Inter-segment  127,254        19,911       14,906        233          9,605        (171,909)     —
sales
Total          $ 1,780,023    $ 449,459    $  281,188    $ 196,128    $ 317,782    $ (171,909)   $ 2,852,671
EBIT ^(1)      $ 317,455      $ 34,202     $  (4,256)    $ 45,108     $ 27,826     $ (4,350)     $ 415,985
As a percent
of total       17.8        %  7.6       %  (1.5%)        23.0      %  8.8       %                14.6        %
sales
Special items  $ 1,052        $ 2,045      $  6,071      $ 12,198     $ —          $ —           $ 21,366
charge ^(2)
EBIT, as       $ 318,507      $ 36,247     $  1,815      $ 57,306     $ 27,826     $ (4,350)     $ 437,351
adjusted ^(4)
As a percent
of total       17.9        %  8.1       %  0.6        %  29.2      %  8.8       %                15.3        %
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  $ 827          $ 3,534      $  4,993      $ 1,381      $ —          $ —           $ 10,735
charge ^(3)
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
(1) EBIT is defined as Operating income plus Equity earnings in affiliates and Other income.
(2) Special items in the three and twelve months ended December 31, 2013 include net rationalization and
asset impairment charges and a loss recognized on the sale of land. The twelve months ended December 31, 2013
special charges also include the impact of the devaluation of the Venezuelan currency.
(3) Special items in the three and twelve months ended December 31, 2012 include net rationalization and
asset impairment charges. The twelve months ended December 31, 2012 special charges also include an
unfavorable adjustment due to a change in Venezuelan labor law, which provides for increased employee
severance obligations.
(4) The primary profit measure used by management to assess segment 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
              2012                                                  Exchange      2013
Operating
Segments
North
America       $ 392,939     $ 5,880       $  12,970     $  307      $ (2,063)     $ 410,033
Welding
Europe        107,507       4,726         —             (2,774)     2,415         111,874
Welding
Asia Pacific  70,223        (3,994)       —             (974)       (2,085)       63,170
Welding
South
America       39,931        11,723        —             13,866      (2,217)       63,303
Welding
The Harris
Products      74,048        3,106         —             (10,327)    (416)         66,411
Group
Consolidated  $ 684,648     $ 21,441      $  12,970     $  98       $ (4,366)     $ 714,791
% Change
North
America                     1.5        %  3.3        %  0.1      %  (0.5%)        4.4         %
Welding
Europe                      4.4        %  —             (2.6%)      2.2        %  4.1         %
Welding
Asia Pacific                (5.7%)        —             (1.4%)      (3.0%)        (10.0%)
Welding
South
America                     29.4       %  —             34.7     %  (5.6%)        58.5        %
Welding
The Harris
Products                    4.2        %  —             (13.9%)     (0.6%)        (10.3%)
Group
Consolidated                3.1        %  1.9        %  —           (0.6%)        4.4         %
Twelve Months Ended December 31st Change in Net Sales by Segment
                            Change in Net Sales due to:
              NetSales                                             Foreign       NetSales
                            Volume        Acquisitions  Price
              2012                                                  Exchange      2013
Operating
Segments
North
America       $ 1,580,818   $ (22,962)    $  91,442     $  7,785    $ (4,314)     $ 1,652,769
Welding
Europe        452,227       (18,518)      —             (5,696)     1,535         429,548
Welding
Asia Pacific  324,482       (48,964)      —             (4,947)     (4,289)       266,282
Welding
South
America       161,483       13,269        —             29,730      (8,587)       195,895
Welding
The Harris
Products      334,357       1,276         —             (24,748)    (2,708)       308,177
Group
Consolidated  $ 2,853,367   $ (75,899)    $  91,442     $  2,124    $ (18,363)    $ 2,852,671
% Change
North
America                     (1.5%)        5.8        %  0.5      %  (0.3%)        4.6         %
Welding
Europe                      (4.1%)        —             (1.3%)      0.3        %  (5.0%)
Welding
Asia Pacific                (15.1%)       —             (1.5%)      (1.3%)        (17.9%)
Welding
South
America                     8.2        %  —             18.4     %  (5.3%)        21.3        %
Welding
The Harris
Products                    0.4        %  —             (7.4%)      (0.8%)        (7.8%)
Group
Consolidated                (2.7%)        3.2        %  0.1      %  (0.6%)        —



SOURCE Lincoln Electric Holdings, Inc.

Website: http://www.lincolnelectric.com
Contact: Amanda Butler, Director, Investor Relations, Tel: 216.383.2534,
Email: Amanda_Butler@lincolnelectric.com
 
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