Lincoln Electric Q2 Profit Rises

(RTTNews) - Welding products maker Lincoln Electric Holdings Inc. (LECO), Sunday reported an increase in profit for the second quarter, as margins improved and operating costs dropped. Earnings for the quarter came in ahead of analysts' estimates, but revenues fell short of expectations.

Cleveland, Ohio-based Lincoln Electric's second-quarter profit rose to $77.3 million or $0.96 per share from $72.6 million or $0.87 per share last year.

Adjusted earnings improved to $81.5 million or $1.01 per share from $75.7 million or $0.91 per share last year. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude one-time items.

Lincoln Electric, which sells arc welding equipment, plasma and oxy-fuel cutting equipment and robotic arc welding products, said its sales for the quarter inched up 0.2 percent to $728.5 million from $727.4 million last year. Analysts had a consensus estimate of $731.54 million for the quarter.

Gross margins for the quarter improved to 34.4 percent from 33.0 percent last year, on lower production costs. Operating margins improved to 15.4 percent from 14.3 percent last year, as selling, general and administrative costs dropped 1.4 percent.

North America welding segment revenue rose 2.5 percent to $429.5 million, while Europe welding increased 6.4 percent to $115.6 million. Asia Pacific welding, South America welding and Harris Products divisions dropped 3.2, 12.3 and 9.9 percent respectively.

Chief Executive Christopher Mapes said, "We are pleased to report improving trends in our business from growth in our innovative solutions and benefits from acquisitions."

LECO closed Friday's trading on the Nasdaq at $66.77, down $0.41 or 0.61%.