CLEVELAND, Dec. 17 /PRNewswire-FirstCall/ -- As previously announced, Lincoln Electric Holdings, Inc.'s management structure was realigned to more efficiently direct its resources and bolster its global market leadership position. As a result of these management organizational changes, effective the fourth quarter of 2009, the Company will report five operating segments as follows: North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group.
The North America Welding segment comprises operations in the United States, Canada and Mexico. The other three welding segments contain welding operations in Europe, Asia Pacific and South America, respectively. The fifth segment, The Harris Products Group, includes the Company's global cutting, soldering and brazing businesses as well as the retail business in the United States.
The reclassification of historical results into the five new business segments for previously reported periods for 2007, 2008 and the 2009 first, second and third quarters are attached and can also be obtained by clicking on the following link: http://www.lincolnelectric.com/InvestorNews. The Company did not operate under the realigned segment structure for any of these prior periods and will begin to report comparative results under the new structure effective with the filing of its Annual Report on Form 10-K for the year ending December 31, 2009.
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 38 manufacturing locations, including operations and joint ventures in 18 countries and a worldwide network of distributors and sales offices covering more than 160 countries. For more information about Lincoln Electric, 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. 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 international terrorism and hostilities 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. Segment Highlights (In thousands) (Unaudited) The North Asia South Harris Corporate / America Europe Pacific America Products Elimin- Consoli- Welding Welding Welding Welding Group ations dated ------- ------- ------- ------- ----- ---------- -------- Three months ended September 30, 2009 Net sales to unaffil- iated cust- omers $213,132 $84,365 $62,204 $26,430 $55,671 $- $441,802 Inter- segment sales 21,393 2,668 1,171 - 1,416 (26,648) - ------ ----- ----- --- ----- ------- --- Total $234,525 $87,033 $63,375 $26,430 $57,087 $(26,648) $441,802 ======== ======= ======= ======= ======= ======== ======== Income (loss) before interest and income taxes $34,497 $(3,834) $(11,595) $4,354 $1,701 $424 $25,547 As a percent of total sales 14.7% (4.4%) (18.3%) 16.5% 3.0% 5.8% Special items (1) $- $6,338 $8,606 $164 $(21) $- $15,087 Adjusted income (loss) before interest and income taxes excluding special items (5) $34,497 $2,504 $(2,989) $4,518 $1,680 $424 $40,634 As a percent of total sales 14.7% 2.9% (4.7%) 17.1% 2.9% 9.2% Three months ended June 30, 2009 Net sales to unaffil- iated cust- omers $208,014 $88,711 $38,249 $22,108 $56,201 $- $413,283 Inter- segment sales 20,079 2,311 292 - 2,913 (25,595) - ------ ----- --- --- ----- ------- --- Total $228,093 $91,022 $38,541 $22,108 $59,114 $(25,595) $413,283 ======== ======= ======= ======= ======= ======== ======== Income (loss) before interest and income taxes $30,620 $1,140 $(4,617) $2,105 $(3,273) $(1,109) $24,866 As a percent of total sales 13.4% 1.3% (12.0%) 9.5% (5.5%) 6.0% Special items (2) $17 $(3,481) $(1,272) $307 $4,096 $- $(333) Adjusted income (loss) before interest and income taxes excluding special items (5) $30,637 $(2,341) $(5,889) $2,412 $823 $(1,109) $24,533 As a percent of total sales 13.4% (2.6%) (15.3%) 10.9% 1.4% 5.9% Three months ended March 31, 2009 Net sales to unaffil- iated cust- omers $218,827 $87,499 $32,691 $20,659 $52,075 $- $411,751 Inter- segment sales 22,264 2,022 537 - 1,864 (26,687) - ------ ----- --- --- ----- ------- --- Total $241,091 $89,521 $33,228 $20,659 $53,939 $(26,687) $411,751 ======== ======= ======= ======= ======= ======== ======== Income (loss) before interest and income taxes $17,373 $(5,478) $(7,558) $107 $(3,206) $(1,798) $(560) As a percent of total sales 7.2% (6.1%) (22.7%) 0.5% (5.9%) (0.1%) Special items (3) $10,174 $468 $397 $57 $603 $- $11,699 Adjusted income (loss) before interest and income taxes excluding special items (5) $27,547 $(5,010) $(7,161) $164 $(2,603) $(1,798) $11,139 As a percent of total sales 11.4% (5.6%) (21.6%) 0.8% (4.8%) 2.7% Nine months ended September 30, 2009 Net sales to unaffil- iated cust -omers $639,973 $260,575 $133,144 $69,197 $163,947 $- $1,266,836 Inter- segment sales 63,736 7,001 2,000 - 6,193 (78,930) - ------ ----- ----- --- ----- ------- --- Total $703,709 $267,576 $135,144 $69,197 $170,140 $(78,930) $1,266,836 ======== ======== ======== ======= ======== ======== ========== Income (loss) before interest and income taxes $82,490 $(8,172) $(23,770) $6,566 $(4,778) $(2,483) $49,853 As a percent of total sales 11.7% (3.1%) (17.6%) 9.5% (2.8%) 3.9% Special items (4) $10,191 $3,325 $7,731 $528 $4,678 $- $26,453 Adjusted income (loss) before interest and income taxes excluding special items (5) $92,681 $(4,847) $(16,039) $7,094 $(100) $(2,483) $76,306 As a percent of total sales 13.2% (1.8%) (11.9%) 10.3% (0.1%) 6.0% (1) Special items include the impacts of rationalization activities and a loss on the acquisition of a business. (2) Special items include the impacts of rationalization activities, a gain on the sale of a property and a pension settlement gain. (3) Special items include the impact of rationalization activities. (4) Special items include the impacts of rationalization activities, a gain on the sale of a property, a pension settlement gain and a loss on the acquisition of a business. (5) Adjusted income (loss) before interest and income taxes excluding special items is a non-GAAP financial measure that management believes is 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. Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) The North Asia South Harris Corporate / America Europe Pacific America Products Elimin- Consoli- Welding Welding Welding Welding Group ations dated ------- ------- ------- ------- ----- ----------- -------- Three months ended December 31, 2008 Net sales to unaffil- iated cust- omers $286,287 $108,801 $48,064 $26,593 $56,441 $- $526,186 Inter- segment sales 30,910 1,905 1,170 8 1,677 (35,670) - ------ ----- ----- --- ----- ------- --- Total $317,197 $110,706 $49,234 $26,601 $58,118 $(35,670) $526,186 ======== ======== ======= ======= ======= ======== ======== Income (loss) before interest and income taxes $54,588 $(851) $(16,304) $2,554 $(5,087) $(1,077) $33,823 As a percent of total sales 17.2% (0.8%) (33.1%) 9.6% (8.8%) 6.4% Special items (1) $818 $2,052 $15,582 $- $919 $- $19,371 Adjusted income (loss) before interest and income taxes excluding special items (2) $55,406 $1,201 $(722) $2,554 $(4,168) $(1,077) $53,194 As a percent of total sales 17.5% 1.1% (1.5%) 9.6% (7.2%) 10.1% Three months ended September 30, 2008 Net sales to unaffil- iated cust- omers $333,934 $132,636 $62,771 $32,662 $70,889 $- $632,892 Inter- segment sales 32,576 4,911 754 2 2,102 (40,345) - ------ ----- --- --- ----- ------- --- Total $366,510 $137,547 $63,525 $32,664 $72,991 $(40,345) $632,892 ======== ======== ======= ======= ======= ======== ======== Income before interest and income taxes $65,865 $19,036 $2,974 $4,283 $2,752 $(1,189) $93,721 As a percent of total sales 18.0% 13.8% 4.7% 13.1% 3.8% 14.8% Three months ended June 30, 2008 Net sales to unaffil- iated cust- omers $357,299 $160,115 $68,215 $31,674 $82,523 $- $699,826 Inter- segment sales 35,717 4,836 936 27 2,540 (44,056) - ------ ----- --- --- ----- ------- --- Total $393,016 $164,951 $69,151 $31,701 $85,063 $(44,056) $699,826 ======== ======== ======= ======= ======= ======== ======== Income before interest and income taxes $65,397 $20,385 $5,923 $1,610 $5,716 $(2,994) $96,037 As a percent of total sales 16.6% 12.4% 8.6% 5.1% 6.7% 13.7% Three months ended March 31, 2008 Net sales to unaffil- iated cust- omers $336,361 $137,018 $51,611 $25,132 $70,105 $- $620,227 Inter- segment sales 27,884 3,997 662 - 2,249 (34,792) - ------ ----- --- --- ----- ------- --- Total $364,245 $141,015 $52,273 $25,132 $72,354 $(34,792) $620,227 ======== ======== ======= ======= ======= ======== ======== Income before interest and income taxes $56,980 $15,376 $85 $1,537 $5,918 $(358) $79,538 As a percent of total sales 15.6% 10.9% 0.2% 6.1% 8.2% 12.8% Twelve months ended December 31, 2008 Net sales to unaffil- iated cust- omers $1,313,881 $538,570 $230,661 $116,061 $279,958 $- $2,479,131 Inter- segment sales 127,087 15,649 3,522 37 8,568 (154,863) - ------- ------ ----- --- ----- -------- --- Total $1,440,968 $554,219 $234,183 $116,098 $288,526 $(154,863) $2,479,131 ========== ======== ======== ======== ======== ========= ========== Income (loss) before interest and income taxes $242,830 $53,946 $(7,322) $9,984 $9,299 $(5,618) $303,119 As a percent of total sales 16.9% 9.7% (3.1%) 8.6% 3.2% 12.2% Special items (1) $818 $2,052 $15,582 $- $919 $- $19,371 Adjusted income before interest and income taxes excluding special items (2) $243,648 $55,998 $8,260 $9,984 $10,218 $(5,618) $322,490 As a percent of total sales 16.9% 10.1% 3.5% 8.6% 3.5% 13.0% (1) Special items include the impacts of rationalization activities and asset impairments. (2) Adjusted income (loss) before interest and income taxes excluding special items is a non-GAAP financial measure that management believes is 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. Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) The North Asia South Harris Corporate / America Europe Pacific America Products Elimin- Consoli- Welding Welding Welding Welding Group ations dated ------- ------- ------- ------- ----- ----------- -------- Twelve months ended December 31, 2007 Net sales to unaffil- iated cust- omers $1,248,382 $474,388 $178,120 $101,426 $278,468 $- $2,280,784 Inter- segment sales 114,930 14,295 2,501 1,793 8,028 (141,547) - ------- ------ ----- ----- ----- -------- --- Total $1,363,312 $488,683 $180,621 $103,219 $286,496 $(141,547) $2,280,784 ========== ======== ======== ======== ======== ========= ========== Income (loss) before interest and income taxes $206,768 $57,495 $(328) $8,804 $18,800 $(1,246) $290,293 As a percent of total sales 15.2% 11.8% (0.2%) 8.5% 6.6% 12.7% Special items (1) $- $- $- $- $(188) $- $(188) Adjusted income (loss) before interest and income taxes excluding special items (2) $206,768 $57,495 $(328) $8,804 $18,612 $(1,246) $290,105 As a percent of total sales 15.2% 11.8% (0.2%) 8.5% 6.5% 12.7% (1) Special items include the impact of rationalization activities. (2) Adjusted income (loss) before interest and income taxes excluding special items is a non-GAAP financial measure that management believes is 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.
Lincoln Electric Holdings, Inc.
CONTACT: Media: Roy L. Morrow, +1-216-383-4893,
Roy_Morrow@lincolnelectric.com, or Investors: Earl L. Ward, +1-216-383-5067,
Earl_Ward@lincolnelectric.com
Web Site: http://www.lincolnelectric.com/
