This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lincoln Electric's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Actual results may differ materially from such statements due to a variety of factors that could adversely affect the company's operating results. Risks and uncertainties that may affect our results are provided in our press release and in our SEC filings on Form 10-K and Form 10-Q.

Now, let me turn the call over to John Stropki.

John Stropki

Thank you Vince and good morning to everyone. Our results for 2011 fourth quarter were very positive. 2011 sales of $2.7 billion was the highest in Lincoln’s history and also marked the second consecutive year-over-year of very strong sales growth. Sales in 2011 increased 30.2% over 2010, which in their self were up 20% from 2009 results.

We obtained good leverage in most of our business segments. The fourth quarter strong operating results, coupled with continued strength in sales and profitability were particularly encouraging, giving the ongoing uncertainty in economic and political environments in several key markets.

We entered 2012 with very good momentum. Particularly here in North America, our largest segment, where the overall manufacturing environment and relative business metrics continue to improve, especially in the United States. Our strong revenue growth underlines the fact we remain focused, on track and we are executing on our global growth strategy.

Our three U.S. acquisitions of last year are contributing beyond expectations and demonstrating good upside potential. Fourth quarter sales rose 23% to $695 million and net income increased 39% to $57.7 million or $0.68 per diluted share. Full year 2011 net income increased 66.8% to $217 million or $2.56 per diluted share. Vince will provide more detail on the numbers later, but first I’ll review some of the segments and provide a little color about the activity in the regions.

First, North America. In North America, our largest segment, sales were very strong in the quarter, rising 33% year-over-year to $362 million. Third party export sales increased $63 million, up 21% from the fourth quarter of 2010. Exports to the Brit countries improved 37% over the same period. We also announced a price increase in the United States effective October 3, 2011. Machine pricing was increased, an average of about 5%, with certain welding consumables, including select Sub Arc and Flex Cord wires, the pricing increased between 3% to 7%. 2011 North America sales were $1.3 billion, a 29% increase year-over-year.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,693.90 -57.49 -0.32%
S&P 500 2,099.84 -8.73 -0.41%
NASDAQ 5,089.5870 -22.1460 -0.43%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs