Sep 30, 2020

Lincoln Electric Q3 2020 Earnings Report

Reported a decrease in net sales, but improved demand and cost management resulted in solid profitability.

Key Takeaways

Lincoln Electric reported a decrease in net sales by 8.5% to $668.9 million, driven by an 8.3% decrease in organic sales and 0.2% unfavorable foreign exchange. Despite the sales decline, the company achieved an operating income margin of 11.6% and an adjusted operating income margin of 12.6%. Net income was $58.5 million, or $0.97 per share, while adjusted EPS was $1.10.

Net sales declined by 8.5% due to lower organic sales.

Operating income margin was 11.6%, with an adjusted operating income margin of 12.6%.

EPS was $0.97, and adjusted EPS was $1.10.

The company experienced solid cash flow generation with 117% cash conversion.

Total Revenue
$669M
Previous year: $731M
-8.5%
EPS
$1.1
Previous year: $1.09
+0.9%
Operating Margin
11.6%
Previous year: 12.1%
-4.1%
Adjusted Operating Margin
12.6%
Previous year: 12.5%
+0.8%
Gross Profit
$215M
Previous year: $238M
-9.6%
Cash and Equivalents
$152M
Previous year: $157M
-2.6%
Total Assets
$2.22B
Previous year: $2.36B
-6.1%

Lincoln Electric

Lincoln Electric

Lincoln Electric Revenue by Segment

Forward Guidance

Lincoln Electric is well-positioned to maximize growth and is focused on increasing profitability and returns to generate long-term value for its shareholders.

Revenue & Expenses

Visualization of income flow from segment revenue to net income