Welder manufacturer Lincoln Electric Holdings last week reported an increase in third-quarter net income exceeding analysts’ expectations, propelled by sales growth across all segments and geographies.
The company posted third-quarter net income of $69.2 million, a 38.5-percent boost compared with $50 million for the same period last year. Earnings per share jumped 39.1 percent to $1.60 compared to $1.15 in last year’s third quarter. Analysts had predicted earnings per share of about $1.34 per share.
Operating income climbed 32.8 percent to $89.78 million, compared to $67.6 million in the year-ago quarter. Net sales rose 12.1 percent to $632.9 million compared with $564.8 million a year ago.
Total North America revenue was $398.2 million, up from $370.8 million in last year’s third quarter. European revenue increased from $127.4 million in last year’s period to $149 million this year.
Net income for the third quarter was $192.8 million, a 25.8-percent increase from $153.2 million in the same period last year.
However, the company said it expects declining sales volumes and the impact of lower commodity costs to pressure fourth-quarter margins.
In other Lincoln Electric news, the Cleveland, Ohio-based company acquired a 90-percent interest in Brastak, a Brazilian manufacturer of brazing products based in Sao Paulo with annual sales of $30 million.
“The Brastak acquisition represents the expansion of our brazing product line as well as our continued expansion into developing international markets,” said Lincoln Electric CEO John Stropki. “The Brastak business will strengthen our presence in the Brazilian market and provide a platform for servicing the South American region with high quality brazing products.”