Lincoln Electric Q2 Adj. Earnings Top Estimates, Revenues Miss - Update

(RTTNews) - Welding & industrial equipment maker Lincoln Electric Holdings, Inc. (LECO) Monday reported a higher second-quarter profit, reflecting lower costs, despite a decline in sales. Adjusted earnings beat analysts' expectations, while revenues missed view.

Looking ahead, Christopher Mapes, president and chief executive officer of the company said, "While we maintain a cautious outlook for the balance of the year on mixed end sector performance, we expect to continue to deliver solid margin and earnings performance from the benefits of our initiatives, new product introductions and the careful management of expenses."

The company's quarterly net income increased to $72.61 million or $0.87 per share from $66.32 million or $0.79 per share reported last year.

On an adjusted basis, earnings were $0.91 per share for the recent quarter, while the company posted $0.81 per share a year earlier. On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.88 per share for the quarter. Analysts' estimates typically exclude special items.

Operating income rose to $104.3 million from $96 million in the year 2012. According to the company, special items that impacted operating income in the recent quarter include pre-tax rationalization charges of $0.9 million, and pre-tax charges of $2.5 million to costs of goods sold related to devaluation of the Venezuelan currency.

Net sales for the quarter declined 2.2 percent to $727.43 million from $744.05 million in the prior year. Analysts expected revenue of $759.81 million for the quarter.

Cost of goods sold were $487.09 million, lower than $519.05 million a year ago.

LECO is currently trading at $58.73, down $2.21 or 3.63 percent, on the Nasdaq.