LONDON, UK / ACCESSWIRE / March 23, 2018 / Active-Investors.com has just released a free earnings report on Lincoln Electric Holdings, Inc. (NASDAQ: LECO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LECO. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 14, 2018. The manufacturer of specialized welding products and other equipment outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lincoln Electric Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
During Q4 2017, Lincoln Electric's sales surged 32.5% to $747.2 million, reflecting a benefit from acquisitions of 20.3%, higher volumes of 6.8%, an increase in price of 3.2%, and a favorable impact from foreign exchange of 2.2%. The Company had reported sales of $563.8 million in Q4 2016. Lincoln Electric's revenue numbers beat analysts' estimates of $697.8 million.
During Q4 2017, Lincoln Electric's operating income totaled $75.5 million, or 10.1% of sales, compared to $83.1 million, or 14.7% of sales, in Q4 2016. On an adjusted basis, the Company's operating income was $92.8 million, or 12.4% of sales, in the reported quarter compared to $83.1 million, or 14.7% of sales, in the prior year's same quarter.
The US Tax Cuts and Jobs Act 2017 (TCJA), which was enacted in December 2017, resulted in a one-time net tax expense of $28.6 million, or $0.43 per share, for Lincoln Electric in Q4 2017, primarily related to taxes on the Company's unremitted foreign earnings and profits.
Lincoln Electric reported a net income of $24.2 million, or $0.36 per diluted share, in Q4 2017. The Company's earnings included special items of after-tax charges of $43.3 million, or $0.65 per share, in the reported quarter. Excluding these items, Lincoln Electric's adjusted net income was $67.5 million, or $1.01 per share, in Q4 2017 compared to $53.4 million, or $0.81 per share, in Q4 2016, and was ahead of Wall Street's estimates of $0.96 per share.
Lincoln Electric's sales increased 15.4% to $2.62 billion in the twelve months ended December 31, 2017, compared to $2.27 billion in FY16.
For FY17, Lincoln Electric's net income was $247.5 million, or $3.71 per share, compared to $198.4 million, or $2.91 per share, in FY16. The Company's reported earnings included special items of after-tax net charges of $5.2 million, or $0.08 per share.
Lincoln Electric's adjusted net income was $252.7 million, or $3.79 per share, in FY17 compared to $224.5 million, or $3.29 per share, in FY16.
Segment Results
During Q4 2017, Lincoln Electric's Americas Welding segment recorded sales of $445.0 million. The segment's adjusted earnings before interest and taxes (EBIT) rose 4% to $74.5 million in the reported quarter. The segment's adjusted EBIT margin declined 140 basis points to 16.8% on higher incentive compensation cost, charitable contributions, and rising raw material cost.
For Q4 2017, Lincoln Electric's International Welding segment sales were $256.02 million. The segment's adjusted EBIT increased 61.2% to $12.0 million, due to the addition of Air Liquide Welding, sales leverage in Asia/Pacific, and a favorable foreign exchange. The segment's adjusted EBIT margin declined 90 basis points to 4.6% because of the acquisition.
During Q4 2017, Lincoln Electric's Harris Products Group segment's sales totaled $68.1 million. The segment's adjusted margin improved 270 basis points to 12.9% on approximately higher volumes of 7%.
Cash Matters
During Q4 2017, Lincoln Electric generated strong cash flows of $89 million, with a 99% cash conversion of adjusted net income. On a full year basis, the Company achieved cash flows from operations of $335 million on a solid cash conversion ratio of 108%. Lincoln Electric also achieved a record working capital efficiency with the average operating working capital ratio of 14.2% in the legacy Lincoln businesses.
During Q4 2017, Lincoln Electric spent $20 million on repurchasing approximately 222,000 shares in the open market. In the full year 2017, the Company's repurchases were $43.2 million.
Stock Performance Snapshot
March 22, 2018 - At Thursday's closing bell, Lincoln Electric Holdings' stock fell 3.65%, ending the trading session at $90.78.
Volume traded for the day: 288.67 thousand shares.
Stock performance in the last month – up 0.09%; and past twelve-month period – up 6.23%
After yesterday's close, Lincoln Electric Holdings' market cap was at $5.89 billion.
Price to Earnings (P/E) ratio was at 21.92.
The stock has a dividend yield of 1.72%.
The stock is part of the Industrial Goods sector, categorized under the Small Tools & Accessories industry.
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