Lincoln Electric Reports Second Consecutive Record Sales Quarter of $744.0 Million; 2Q ’12 Sales Increase of 6.4%; 2Q Operating Income Increase of 20.0%; 2Q EPS of $0.79, $0.81 as Adjusted, an Increase of 16.2%, 19.1% as Adjusted
CLEVELAND, July 30, 2012 /PRNewswire/ —
Second Quarter and First Half 2012 Highlights
- Sales were $744.0 million, an increase of 6.4% from the Second Quarter 2011; First Half 2012 Sales were $1.5 billion, an increase of 13.3% from 2011
- Operating income increased 20.0% to $96.0 million, or 12.9% of sales, from $80.0 million, or 11.4% of sales, in the Second Quarter 2011; Adjusted operating income increased 23.4% to $98.7 million or 13.3% of sales
- Net income increased 16.3% to $66.3 million, or $0.79 per diluted share, from $57.0 million, or $0.68 per diluted share, in the Second Quarter 2011; Adjusted net income increased 19.6% to $68.1 million, or $0.81 per diluted share, from $57.0 million, or $0.68 per diluted share, in the Second Quarter 2011
- Net cash provided by operating activities in the Second Quarter 2012 increased $52.9 million, or 183.4%, to $81.7 million; Net cash provided by operating activities in the First Half 2012 increased $115.3 million, or 253.0%, to $160.9 million
Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported second quarter 2012 net income of $66.3 million, or $0.79 per diluted share. Adjusted net income was $68.1 million, or $0.81 per diluted share, compared to adjusted net income of $57.0 million, or $0.68 per diluted share, in the comparable 2011 period.
Sales were $744.0 million in the second quarter 2012 versus $699.3 million in the comparable 2011 period, an increase of 6.4%. Operating income for the second quarter increased $16.0 million to $96.0 million, or 12.9% of sales, from $80.0 million, or 11.4% of sales, in the comparable 2011 period. The effective tax rate for the second quarter 2012 was 32.4% compared with 30.0% in the same period of 2011.
Sales for the six months ended June 30, 2012 were $1.5 billion versus $1.3 billion in the comparable 2011 period, an increase of 13.3%. Operating income for the six months ended June 30, 2012 increased $48.2 million to $187.7 million, or 12.8% of sales, from $139.5 million, or 10.7% of sales, in the comparable 2011 period.
Net income for the six months ended June 30, 2012 was $130.6 million, or $1.54 per diluted share, compared with net income of $103.9 million, or $1.23 per diluted share, in the comparable 2011 period. Adjusted net income was $132.4 million, or $1.57 per diluted share, compared to adjusted net income of $99.3 million, or $1.18 per diluted share, in the comparable 2011 period. The effective tax rate for the six months ended June 30, 2012 was 31.7% compared with 26.8% in 2011. The six months ended June 30, 2011 included a favorable $4.8 million tax adjustment for tax audit settlements.
“We are pleased to report our second consecutive quarter of record sales,” said John M. Stropki, Chairman and Chief Executive Officer. “Sales levels, overall profitability and operating cash flows all improved during the quarter despite the ongoing economic challenges in many of our key markets. The continued strength in operating performance was driven by the strong performance in North America, improved product mix and better pricing dynamics in many of our business segments.
“We are cautious entering the second half of 2012 as we face increased uncertainty in both the political and economic environments around the world. Although our North American markets remain strong, we have seen demand softening in most of our international markets and global economic growth forecasts continue to weaken. Our global growth strategies, which include acquisitions, new product introductions and increasing our commercial presence worldwide, will help us offset the weak economic conditions. Our solid liquidity and ongoing attention to continuous improvements in our operations will provide the increased operating leverage and flexibility required to execute our long-term strategic objectives.”
Net cash provided by operating activities increased $52.9 million to $81.7 million in the second quarter from $28.8 million for the comparable period in 2011. During the quarter, the Company returned $34.2 million to shareholders through the payment of $14.2 million in dividends and the repurchase of $20.0 million, or 428,300 of the Company’s common shares, for treasury. The Company also invested $27.4 million in acquisitions and voluntarily contributed $18.0 million to its U.S. pension plans during the quarter.
Net cash provided by operating activities increased $115.3 million to $160.9 million in the six months ended June 30, 2012 from $45.6 million for the comparable period in 2011. During the period, the Company repaid its $80.0 million senior unsecured note. The Company also returned $68.5 million to shareholders through the payment of $28.4 million in dividends and the repurchase of $40.1 million, or 860,684 of the Company’s common shares, for treasury during the period. The Company also invested $49.3 million in acquisitions and voluntarily contributed $36.0 million to its U.S. pension plans.
The Company’s Board of Directors declared a quarterly cash dividend of $0.17 per share, which was paid on July 13, 2012 to holders of record as of June 29, 2012.
Financial results for the second quarter 2012 can also be obtained at http://www.lincolnelectric.com/InvestorNews.
A conference call to discuss the second quarter 2012 financial results is scheduled for today, Monday, July 30, 2012, at 10:00 a.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 oxyfuel 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 20 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 Form 10-K.
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Income
Three Months Ended June 30, Fav (Unfav) to Prior Year
--------------------------- -------------------------
2012 % of Sales 2011 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $744,045 100.0% $699,293 100.0% $44,752 6.4%
Cost of goods sold 519,048 69.8% 503,789 72.0% (15,259) (3.0%)
------- ------- -------
Gross profit 224,997 30.2% 195,504 28.0% 29,493 15.1%
Selling, general & administrative expenses 127,714 17.2% 115,546 16.5% (12,168) (10.5%)
Rationalization and asset impairment charges (gains) 1,258 0.2% (75) - (1,333) (1777.3%)
----- --- ------
Operating income 96,025 12.9% 80,033 11.4% 15,992 20.0%
Interest income 849 0.1% 661 0.1% 188 28.4%
Equity earnings in affiliates 2,006 0.3% 1,715 0.2% 291 17.0%
Other income 403 0.1% 712 0.1% (309) (43.4%)
Interest expense (1,126) (0.2%) (1,627) (0.2%) 501 30.8%
------ ------ ---
Income before income taxes 98,157 13.2% 81,494 11.7% 16,663 20.4%
Income taxes 31,792 4.3% 24,472 3.5% (7,320) (29.9%)
Effective tax rate 32.4% 30.0% (2.4%)
---- ---- -----
Net income including noncontrolling interests 66,365 8.9% 57,022 8.2% 9,343 16.4%
Noncontrolling interests in subsidiaries' earnings 46 - 9 - 37 411.1%
Net income $66,319 8.9% $57,013 8.2% $9,306 16.3%
======= ======= ======
Basic earnings per share $0.80 $0.69 $0.11 15.9%
Diluted earnings per share $0.79 $0.68 $0.11 16.2%
Weighted average shares (basic) 83,328 83,037
Weighted average shares (diluted) 84,448 84,105
Six Months Ended June 30, Fav (Unfav) to Prior Year
------------------------- -------------------------
2012 % of Sales 2011 % of Sales $ %
---- ---------- ---- ---------- --- ---
Net sales $1,471,167 100.0% $1,298,472 100.0% $172,695 13.3%
Cost of goods sold 1,030,905 70.1% 941,530 72.5% (89,375) (9.5%)
--------- ------- -------
Gross profit 440,262 29.9% 356,942 27.5% 83,320 23.3%
Selling, general & administrative expenses 251,329 17.1% 217,165 16.7% (34,164) (15.7%)
Rationalization and asset impairment charges (gains) 1,258 0.1% 282 - (976) (346.1%)
----- --- ----
Operating income 187,675 12.8% 139,495 10.7% 48,180 34.5%
Interest income 1,732 0.1% 1,269 0.1% 463 36.5%
Equity earnings in affiliates 2,698 0.2% 2,545 0.2% 153 6.0%
Other income 1,269 0.1% 2,007 0.2% (738) (36.8%)
Interest expense (2,298) (0.2%) (3,285) (0.3%) 987 30.0%
------ ------ ---
Income before income taxes 191,076 13.0% 142,031 10.9% 49,045 34.5%
Income taxes 60,562 4.1% 38,067 2.9% (22,495) (59.1%)
Effective tax rate 31.7% 26.8% (4.9%)
---- ---- -----
Net income including noncontrolling interests 130,514 8.9% 103,964 8.0% 26,550 25.5%
Noncontrolling interests in subsidiaries' (loss) earnings (48) - 41 - (89) (217.1%)
Net income $130,562 8.9% $103,923 8.0% $26,639 25.6%
======== ======== =======
Basic earnings per share $1.57 $1.25 $0.32 25.6%
Diluted earnings per share $1.54 $1.23 $0.31 25.2%
Weighted average shares (basic) 83,390 83,414
Weighted average shares (diluted) 84,527 84,493
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Non-GAAP Financial Measures
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2012 2011 2012 2011
---- ---- ---- ----
Operating income as reported $96,025 $80,033 $187,675 $139,495
Special items (pre-tax):
Rationalization and asset impairment charges
(gains) (1) 1,258 (75) 1,258 282
Venezuelan statutory severance obligation (2) 1,381 - 1,381 -
Adjusted operating income (4) $98,664 $79,958 $190,314 $139,777
======= ======= ======== ========
Net income as reported $66,319 $57,013 $130,562 $103,923
Special items (after-tax):
Rationalization and asset impairment charges
(gains) (1) 915 (44) 915 237
Venezuelan statutory severance obligation (2) 906 - 906 -
Adjustment for tax audit settlements (3) - - - (4,844)
Adjusted net income (4) $68,140 $56,969 $132,383 $99,316
======= ======= ======== =======
Diluted earnings per share as reported $0.79 $0.68 $1.54 $1.23
Special items 0.02 - 0.03 (0.05)
Adjusted diluted earnings per share (4) $0.81 $0.68 $1.57 $1.18
===== ===== ===== =====
Weighted average shares (diluted) 84,448 84,105 84,527 84,493
(1) The three and six month
periods ended June 30, 2012
include charges associated
with severance and other
costs from the consolidation
of manufacturing operations
initiated in 2012. The
three and six month periods
ended June 30, 2011 include
charges associated with
severance and other costs
from the consolidation of
manufacturing operations
initiated in 2009 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.
(4) 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.
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)
Balance Sheet
Highlights
June 30, December 31,
Selected Consolidated
Balance Sheet Data 2012 2011
---- ----
Cash and cash
equivalents $307,963 $361,101
Total current
assets 1,236,340 1,219,270
Property, plant and
equipment, net 476,478 470,451
Total assets 2,021,988 1,976,776
Total current
liabilities 459,420 471,042
Short-term
debt (1) 20,733 101,418
Long-term debt 2,396 1,960
Total equity 1,281,008 1,193,242
June 30, December 31,
Net Operating Working
Capital 2012 2011
---- ----
Accounts
receivable $422,532 $386,197
Inventory 400,562 373,238
Trade accounts
payable 202,413 176,312
Net operating
working capital $620,681 $583,123
======== ========
Net operating working
capital to net sales(2) 20.9% 21.0%
==== ====
June 30, December 31,
Invested
Capital 2012 2011
---- ----
Short-term
debt (1) $20,733 $101,418
Long-term debt 2,396 1,960
----- -----
Total debt 23,129 103,378
Total equity 1,281,008 1,193,242
--------- ---------
Invested
capital $1,304,137 $1,296,620
========== ==========
Total debt /
invested capital 1.8% 8.0%
Return on invested
capital (3) 18.8% 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)
Consolidated Statements of Cash Flows
Three Months Ended June 30,
---------------------------
2012 2011
---- ----
OPERATING ACTIVITIES:
Net income $66,319 $57,013
Noncontrolling interests in
subsidiaries' earnings 46 9
--- ---
Net income including noncontrolling
interests 66,365 57,022
Adjustments to reconcile Net income
including noncontrolling interests to
Net
cash provided by operating activities:
Asset impairment charges (gains) - (204)
Depreciation and amortization 16,206 16,143
Equity earnings in affiliates, net (1,154) (196)
Other non-cash items, net 20,315 5,592
Changes in operating assets and
liabilities, net of effects from
acquisitions:
Decrease (increase) in accounts
receivable 8,203 (32,399)
Increase in inventories (6,240) (49,663)
(Decrease) increase in trade accounts
payable (6,958) 10,484
Decrease in accrued pensions (17,887) (9,140)
Net change in other current assets and
liabilities 3,409 31,815
Net change in other long-term assets
and liabilities (537) (616)
NET CASH PROVIDED BY OPERATING
ACTIVITIES 81,722 28,838
INVESTING ACTIVITIES:
Capital expenditures (13,680) (13,867)
Acquisition of businesses, net of cash
acquired (27,439) -
Proceeds from sale of property, plant
and equipment 128 707
Other investing activities (1,541) -
NET CASH USED BY INVESTING ACTIVITIES (42,532) (13,160)
FINANCING ACTIVITIES:
Net change in borrowings (1,371) (167)
Proceeds from exercise of stock options 4,772 3,335
Tax benefit from exercise of stock
options 2,471 1,312
Purchase of shares for treasury (20,040) (12,404)
Cash dividends paid to shareholders (14,177) (13,018)
NET CASH USED BY FINANCING ACTIVITIES (28,345) (20,942)
Effect of exchange rate changes on Cash
and cash equivalents (3,720) 1,764
------ -----
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 7,125 (3,500)
Cash and cash equivalents at beginning
of period 300,838 341,415
Cash and cash equivalents at end of
period $307,963 $337,915
======== ========
Cash dividends paid per share $0.17 $0.155
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Cash Flows
Six Months Ended June 30,
-------------------------
2012 2011
---- ----
OPERATING ACTIVITIES:
Net income $130,562 $103,923
Noncontrolling interests in subsidiaries'
(loss) earnings (48) 41
--- ---
Net income including noncontrolling interests 130,514 103,964
Adjustments to reconcile Net income including
noncontrolling interests to Net
cash provided by operating activities:
Asset impairment charges (gains) - 23
Depreciation and amortization 31,785 31,349
Equity earnings in affiliates, net (711) (558)
Other non-cash items, net 35,674 24,432
Changes in operating assets and liabilities,
net of effects from acquisitions:
Increase in accounts receivable (21,549) (75,723)
Increase in inventories (20,702) (111,727)
Increase in trade accounts payable 16,383 66,037
Decrease in accrued pensions (36,857) (16,544)
Net change in other current assets and
liabilities 22,484 27,385
Net change in other long-term assets and
liabilities 3,865 (3,062)
NET CASH PROVIDED BY OPERATING ACTIVITIES 160,886 45,576
INVESTING ACTIVITIES:
Capital expenditures (26,247) (29,370)
Acquisition of businesses, net of cash
acquired (49,335) (17,881)
Proceeds from sale of property, plant and
equipment 338 849
Other investing activities (1,541) -
NET CASH USED BY INVESTING ACTIVITIES (76,785) (46,402)
FINANCING ACTIVITIES:
Net change in borrowings (85,369) (1,486)
Proceeds from exercise of stock options 12,212 6,199
Tax benefit from exercise of stock options 5,454 2,027
Purchase of shares for treasury (40,138) (13,309)
Cash dividends paid to shareholders (28,363) (26,005)
NET CASH USED BY FINANCING ACTIVITIES (136,204) (32,574)
Effect of exchange rate changes on Cash and
cash equivalents (1,035) 5,122
------ -----
DECREASE IN CASH AND CASH EQUIVALENTS (53,138) (28,278)
Cash and cash equivalents at beginning of
period 361,101 366,193
Cash and cash equivalents at end of period $307,963 $337,915
======== ========
Cash dividends paid per share $0.34 $0.31
Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
North South The Harris
America Europe Asia Pacific America Products Corporate /
Welding Welding Welding Welding Group Eliminations Consolidated
------- ------- ------- ------- ----- ------------ ------------
Three months ended
June 30, 2012
Net sales $416,223 $114,437 $85,433 $37,169 $90,783 $ - $744,045
Inter-segment sales 39,658 4,466 5,076 11 2,353 (51,564) -
------ ----- ----- --- ----- -------
Total $455,881 $118,903 $90,509 $37,180 $93,136 $(51,564) $744,045
======== ======== ======= ======= ======= ======== ========
EBIT(1) $76,479 $10,399 $3,425 $1,599 $9,041 $(2,509) $98,434
As a percent of total
sales 16.8% 8.7% 3.8% 4.3% 9.7% 13.2%
Special items charge
(gain)(2) $77 $592 $589 $1,381 $ - $ - $2,639
EBIT, as adjusted(4) $76,556 $10,991 $4,014 $2,980 $9,041 $(2,509) $101,073
As a percent of total
sales 16.8% 9.2% 4.4% 8.0% 9.7% 13.6%
Three months ended
June 30, 2011
Net sales $321,656 $139,248 $102,721 $37,769 $97,899 $ - $699,293
Inter-segment sales 37,222 6,302 3,397 120 2,017 (49,058) -
------ ----- ----- ----- -------
Total $358,878 $145,550 $106,118 $37,889 $99,916 $(49,058) $699,293
======== ======== ======== ======= ======= ======== ========
EBIT(1) $58,120 $11,039 $1,365 $3,527 $9,197 $(788) $82,460
As a percent of total
sales 16.2% 7.6% 1.3% 9.3% 9.2% 11.8%
Special items charge
(gain)(3) $ - $34 $(109) $ - $ - $ - $(75)
EBIT, as adjusted(4) $58,120 $11,073 $1,256 $3,527 $9,197 $(788) $82,385
As a percent of total
sales 16.2% 7.6% 1.2% 9.3% 9.2% 11.8%
Six months ended
June 30, 2012
Net sales $797,552 $240,240 $177,996 $77,007 $178,372 $ - $1,471,167
Inter-segment sales 73,200 8,917 8,893 11 4,736 (95,757) -
------ ----- ----- --- ----- -------
Total $870,752 $249,157 $186,889 $77,018 $183,108 $(95,757) $1,471,167
======== ======== ======== ======= ======== ======== ==========
EBIT(1) $145,998 $23,210 $5,998 $4,504 $16,194 $(4,262) $191,642
As a percent of total
sales 16.8% 9.3% 3.2% 5.8% 8.8% 13.0%
Special items charge
(gain)(2) $77 $592 $589 $1,381 $ - $ - $2,639
EBIT, as adjusted(4) $146,075 $23,802 $6,587 $5,885 $16,194 $(4,262) $194,281
As a percent of total
sales 16.8% 9.6% 3.5% 7.6% 8.8% 13.2%
Six months ended
June 30, 2011
Net sales $602,413 $253,456 $190,281 $71,842 $180,480 $ - $1,298,472
Inter-segment sales 72,349 10,137 6,610 120 4,250 (93,466) -
------ ------ ----- --- ----- -------
Total $674,762 $263,593 $196,891 $71,962 $184,730 $(93,466) $1,298,472
======== ======== ======== ======= ======== ======== ==========
EBIT(1) $104,756 $16,593 $1,492 $5,575 $15,740 $(109) $144,047
As a percent of total
sales 15.5% 6.3% 0.8% 7.7% 8.5% 11.1%
Special items charge
(gain)(3) $ - $392 $(110) $ - $ - $ - $282
EBIT, as adjusted(4) $104,756 $16,985 $1,382 $5,575 $15,740 $(109) $144,329
As a percent of total
sales 15.5% 6.4% 0.7% 7.7% 8.5% 11.1%
(1) EBIT is defined as Operating income plus Equity earnings
in affiliates and Other income.
(2) Special items include rationalization and asset
impairment charges (gains) and 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).
(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 June 30th Change in Net Sales by Segment
Change in Net Sales due to:
---------------------------
Net Sales Foreign Net Sales
2011 Volume Acquisitions Price Exchange 2012
---- ------ ------------ ----- -------- ----
Operating Segments
North America
Welding $321,656 $42,862 $44,239 $10,945 $(3,479) $416,223
Europe
Welding 139,248 (12,681) - 2,394 (14,524) 114,437
Asia Pacific Welding 102,721 (17,544) - 1,219 (963) 85,433
South America
Welding 37,769 (1,940) - 4,518 (3,178) 37,169
The Harris Products
Group 97,899 3,923 - (7,681) (3,358) 90,783
------
Consolidated $699,293 $14,620 $44,239 $11,395 $(25,502) $744,045
======== ======= ======= ======= ======== ========
% Change
North America
Welding 13.3% 13.8% 3.4% (1.1%) 29.4%
Europe
Welding (9.1%) - 1.7% (10.4%) (17.8%)
Asia Pacific Welding (17.1%) - 1.2% (0.9%) (16.8%)
South America
Welding (5.1%) - 12.0% (8.4%) (1.6%)
The Harris Products
Group 4.0% - (7.8%) (3.4%) (7.3%)
Consolidated 2.1% 6.3% 1.6% (3.6%) 6.4%
Six Months Ended June 30th Change in Net Sales by Segment
Change in Net Sales due to:
---------------------------
Net Sales Foreign Net Sales
2011 Volume Acquisitions Price Exchange 2012
---- ------ ------------ ----- -------- ----
Operating Segments
North America
Welding $602,413 $106,141 $71,557 $21,785 $(4,344) $797,552
Europe
Welding 253,456 (8,881) 8,322 7,756 (20,413) 240,240
Asia Pacific Welding 190,281 (17,162) - 3,110 1,767 177,996
South America
Welding 71,842 1,653 - 7,576 (4,064) 77,007
The Harris Products
Group 180,480 9,301 - (6,911) (4,498) 178,372
-------
Consolidated $1,298,472 $91,052 $79,879 $33,316 $(31,552) $1,471,167
========== ======= ======= ======= ======== ==========
% Change
North America
Welding 17.6% 11.9% 3.6% (0.7%) 32.4%
Europe
Welding (3.5%) 3.3% 3.1% (8.1%) (5.2%)
Asia Pacific Welding (9.0%) - 1.6% 0.9% (6.5%)
South America
Welding 2.3% - 10.5% (5.7%) 7.2%
The Harris Products
Group 5.2% - (3.8%) (2.5%) (1.2%)
Consolidated 7.0% 6.2% 2.6% (2.4%) 13.3%
SOURCE Lincoln Electric Holdings, Inc.
