Lincoln Electric Holdings Inc. ( LECO) reported
fourth-quarter 2012 earnings of 79 cents per share, up 16% from 68
cents in the year-earlier quarter and ahead of the Zacks Consensus
Estimate of 74 cents.
Adjusted income excluded rationalization and asset impairment
charges of 5 cents per share in the reported quarter while the
year-ago quarter did not note any such items. Including this,
reported earnings were 74 cents per share in the quarter versus 68
cents in the year-ago quarter.
Total revenue dipped 1% year over year to $684 million, missing
the Zacks Consensus Estimate of $691 million.
Cost and Margins
Cost of goods sold declined 6% to $471.6 million in the quarter.
Gross profit increased 10% to $213 million. Gross margin expanded
310 basis points (bps) year over year to 31.1% in the quarter.
Selling, general & administrative expenses increased 9% to
$122 million from $112 million in the year-ago quarter. Adjusted
operating profit improved 10% to $90.7 million in the quarter.
Adjusted operating margin inflated 140 bps to 13.3%.
Fiscal 2012 Performance
Lincoln Electric reported record adjusted earnings per share of
$3.16 in 2012, up 26% from $2.51 in 2011 and ahead of the Zacks
Consensus Estimate of $2.16. Including special items, reported
earnings were $3.06 per share compared with $2.56 in 2011. Total
revenue improved 6% year over year to another record of $2.85
As of 2012 end, cash and cash equivalents were $286 million
versus $361 million as of 2011 end. Cash from operating activities
increased to $327.5 million in the year from $193.5 million in the
As of Dec 31, 2012, the debt-to-capitalization ratio was at 1.5%
compared with 8% as of Dec 31, 2011. During the year, Lincoln
Electric repaid its $80 million senior unsecured note and returned
$154.1 million to shareholders through the payment of $73.1 million
as dividends and share repurchases worth $81 million. The company
also expended $134.6 million toward acquisitions and voluntarily
contributed $63.4 million to its U.S. pension plans.
Lincoln Electric's is focusing on making new acquisitions,
introducing new products as well as increasing its footprint in the
global arena. However, the weak global economic condition will be
headwind moving ahead. Lincoln Electric currently retains a
short-term Zacks Rank #2 (Buy).
Stanley Black & Decker ( SWK ) reported earnings
per share of $1.37 in the fourth quarter of 2012, up from $1.22 in
the year-ago quarter and a penny above the Zacks Consensus Estimate
Hardinge Inc. ( HDNG ) reported fourth
quarter adjusted earnings per share of 43 cents compared with 28
cents reported in the year-ago quarter and way ahead of the Zacks
Consensus Estimate of 23 cents.
Illinois Tool Works Inc. ( ITW ) reported fourth
quarter 2012 adjusted earnings per share of 89 cents, a cent above
the year-ago adjusted results of 88 cents, but short of the Zacks
Consensus Estimate of 90 cents.HARDINGE INC (HDNG): Free Stock Analysis ReportILL TOOL WORKS (ITW): Free Stock Analysis
ReportLINCOLN ELECTRC (LECO): Free Stock Analysis
ReportSTANLEY B&D INC (SWK): Free Stock Analysis
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