On October 27, 2023, Lincoln Electric Holdings Inc (LECO, Financial) released its third-quarter earnings report, revealing a significant increase in net sales and income. The company's net sales rose by 10.5% to reach a record $1,033 million, reflecting a 0.4% increase in organic sales, an 8.8% benefit from acquisitions, and a 1.2% favorable foreign exchange.
Financial Performance
LECO's operating income for Q3 2023 was $171.4 million, or 16.6% of sales, compared to $142.1 million, or 15.2% of sales, in the same period last year. After excluding special items, the adjusted operating income was $183.4 million, or 17.7% of sales, compared to $153.2 million, or 16.4% of sales, in the prior year period.
The company's net income for Q3 2023 was $129.3 million, or $2.22 per share, which includes special item after-tax net charges of $10.1 million, or $0.18 per share. This is a significant increase from the prior year period net income of $109.2 million, or $1.87 per share, which included special item after-tax net charges of $10.3 million.
Shareholder Returns and Dividends
LECO returned $82 million to shareholders through dividends and share repurchases in Q3 2023. The company's Board of Directors also declared an 11% increase in the quarterly cash dividend, from $0.64 per share to $0.71 per share, or $2.84 per share on an annual basis.
Company Commentary
I am pleased to report another quarter of record sales, profit, earnings, and cash flow performance," commented Christopher L. Mapes, Chairman, President and Chief Executive Officer. "Our results reflect our commitment to putting customers first, delivering innovative solutions, maintaining effective price/cost management, and successfully executing our Higher Standard Strategy initiatives.”
Financial Tables
LECO's financial tables reveal a strong fiscal performance. The company's net sales for the nine months ended September 30, 2023, increased by 10.7% to $3,133.1 million. The operating income for the same period was $513.8 million, or 16.4% of sales, compared to $470.8 million, or 16.6% of sales, in the prior year period.
Furthermore, the company's balance sheet data shows a significant increase in total assets from $3,180,546 in December 2022 to $3,325,895 in September 2023. The total equity also increased from $1,034,041 in December 2022 to $1,225,582 in September 2023.
Explore the complete 8-K earnings release (here) from Lincoln Electric Holdings Inc for further details.
