Lincoln Electric Holdings Inc.
) reported first-quarter 2013 adjusted earnings of 92 cents per
share, up 21% from 76 cents earned in the year-earlier quarter
and way ahead of the Zacks Consensus Estimate of 78 cents.
Adjusted income excluded a net effect of 12 cents pertaining to
rationalization and asset impairment charges and impact of the
devaluation of the Venezuelan currency in the reported quarter
while the year-ago quarter did not note any such items. Including
this, reported earnings were 80 cents per share in the quarter
versus 76 cents in the year-ago quarter.
Total revenue slipped 1% year over year to $718.6 million,
missing the Zacks Consensus Estimate of $755 million.
Cost and Margins
Cost of goods sold declined 4% to $492.1 million in the quarter.
Gross profit increased 5% to $226.6 million. Gross margin
expanded 190 basis points (bps) year over year to 31.5% in the
Selling, general & administrative expenses increased 11% to
$136.9 million from $123.6 million in the year-ago quarter.
Adjusted operating profit improved 8% to $99.3 million in the
quarter. Adjusted operating margin inflated 120 bps to 13.8%.
As of Mar 31, 2013, cash and cash equivalents were $248 million
versus $286 million as of Dec 31, 2012. Cash from operating
activities was usage of $20.1 million in the quarter compared
with $79.2 million in the prior-year quarter.
As of Mar 31, 2013, the debt-to-capitalization ratio was 1.3%
compared with 1.5% as of Dec 31, 2012. The company expended $12.8
million for share repurchases and voluntarily contributed $50
million to its U.S. pension plans.
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Lincoln Electric is focusing on pursuing new acquisitions,
introducing new products as well as increasing its footprint in
the global arena. However, the weak global economic condition
will be a headwind moving ahead. Lincoln Electric currently
retains a short-term Zacks Rank #3 (Hold).
Among Lincoln Electric's peers,
Illinois Tool Works Inc.
) reported first quarter adjusted earnings per share of 96 cents,
up 8% year over year and in line with the Zacks Consensus
Stanley Black & Decker
) will report their quarterly results on Apr 25.