Lincoln Electric Releases Q2 Results, Sales Up 24%

Lincoln Electric Holdings LECO today reported 2010 second quarter net income of $32.5 million, or $0.76 per diluted share, on sales of $515.6 million. Operating income for the second quarter increased sequentially to $51.1 million, or 9.9% of sales, from $34.7 million, or 7.4% of sales, in the first quarter of 2010. Adjusted operating income in the quarter was $49.8 million or 9.7% of sales. Sales were $515.6 million in the second quarter 2010 versus $413.3 million in the comparable 2009 period, an increase of 24.8%. Net income for the second quarter 2010 was $32.5 million, or $0.76 per diluted share, compared with net income of $15.1 million, or $0.35 per diluted share, in the second quarter of 2009. Adjusted net income was $32.9 million, or $0.77 per diluted share, compared with $14.5 million, or $0.34 per diluted share, in the second quarter of 2009. The effective tax rate for the second quarter of 2010 was 33.5% compared with 35.9% in 2009. Adjusted operating income for the second quarter excludes pre-tax rationalization gains of $3.6 million primarily related to gains on the disposal of assets and a charge of $2.3 million related to the Venezuelan functional currency change and devaluation of the Venezuelan currency, the bolivar, in cost of goods sold.