Jun 30, 2020

Lincoln Electric Q2 2020 Earnings Report

Lincoln Electric's financial performance declined due to lower organic sales, but profitability was maintained through cost management.

Key Takeaways

Lincoln Electric reported a decrease in net sales by 24.0% to $590.7 million, driven by a 24.8% decrease in organic sales. Net income was $27.0 million, or $0.45 EPS, while adjusted net income was $48.0 million, or $0.80 EPS. The company focused on cost reduction, expecting $55 to $65 million in benefits for the year, and maintained a strong cash flow and balance sheet.

Net sales decreased by 24.0% due to lower organic sales.

Operating income margin was 6.7%, and adjusted operating income margin was 10.7%.

Reported EPS was $0.45, while adjusted EPS was $0.80.

The company generated strong cash flow and maintained a solid balance sheet.

Total Revenue
$591M
Previous year: $777M
-24.0%
EPS
$0.8
Previous year: $1.28
-37.5%
Operating Margin
6.7%
Adjusted Operating Margin
10.7%
Gross Profit
$189M
Previous year: $270M
-29.8%
Cash and Equivalents
$143M
Previous year: $190M
-24.7%
Total Assets
$2.2B
Previous year: $2.39B
-8.2%

Lincoln Electric

Lincoln Electric

Lincoln Electric Revenue by Segment

Forward Guidance

Lincoln Electric expects to generate $55 to $65 million in realized cost savings in 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income