Lincoln Electric Inc., developer and manufacturer of arc welding products headquartered in Cleveland, has experienced growth across all segments and most end markets in Q2 2017.
The company has reported Q2 2017 net income of $61.4m, or diluted earnings per share (EPS) of $0.92, which includes acquisition transaction and integration costs of $4.5m, related to the proposed acquisition of Air Liquide Welding. Q2 sales increased 5.8% to $626.9m on 3.2% higher volumes and 2.6% increase in price.
Operating income for Q2 was $87.6m, or 14.0% of sales. This compares with operating income of $48.1m, or 8.1% of sales, in the comparable 2016 period. On an adjusted basis, operating income was $92.1m, or 14.7% of sales, as compared with $82.4m, or 13.9% of sales, in the prior year.
On April 27th, 2017, the company entered into a definitive agreement with Air Liquide to acquire its Air Liquide Welding Subsidiary. The definitive agreement reflects an approximate $131m purchase price for the Air Liquide Welding Business. The proposed acquisition is expected to close on the 31st July 2017.
Christopher L. Mapes, Chairmen, President and CEO, said, “We achieved good momentum in the Q2 with sales growth across all three segments and among most end markets.” He continued, “Financial performance remained solid as operational initiatives and volume improvements helped mitigate rising raw material costs and operating expenses. Given sustained improvement in year-over-year demand, we expect to continue to achieve modest sales and margin growth in 2017. We are also looking forward to completing the Air Liquide Welding acquisition, which will further advance our ‘2020 Vision and Strategy’.