Lincoln Electric Holdings Q3 net losses $60.5 millionStaff writer ▼ | November 2, 2015
Lincoln Electric Holdings reported third quarter 2015 net losses of $60.5 million, or $0.82 per diluted share.
Electric The impact of $126.7 million of after-tax special item
This compares with net income of $45.7 million, or earnings per share (EPS) of $0.57 in the comparable 2014 period. Excluding these items, third quarter 2015 Adjusted net income was $66.2 million, or Adjusted EPS of $0.89. Third quarter 2014 Adjusted net income was $74.9 million, or Adjusted EPS of $0.94.
Sales decreased $70.6 million to $645.2 million in the third quarter 2015 as favorable price and acquisitions were offset by lower volumes and unfavorable foreign currency translation.
Operating losses for the third quarter 2015 were $84 million compared with earnings of $76.1 million, or 10.6% of sales, in the comparable 2014 period. Adjusted operating income was $97.1 million, or 15.1% of sales. This compares with $105.2 million, or 14.7% of sales in 2014.
Third quarter 2015 Adjusted operating income excludes the following pre-tax charges: a $136.3 million non-cash charge primarily related to a previously announced pension annuity contract purchase, a $26.5 million non-cash charge related to a Venezuelan currency remeasurement loss and $18.3 million ($6.1 million non-cash) of rationalization and asset impairment charges primarily related to our ongoing efforts to align our business to current market conditions.
Christopher L. Mapes, chairman, president and chief executive officer stated, "We improved profit margin performance on an adjusted basis in weakening market conditions and against difficult year-over-year comparisons.
"Further to the cost reductions initiated in the second quarter, we implemented additional measures that in aggregate now provide approximately $20 million to $25 million in annualized temporary cost savings and $10 million to $12 million in annualized structural savings.
"Looking ahead, we will continue to execute on our '2020 Vision and Strategy' and manage margin performance through aggressive cost reduction actions in a slowing demand environment. We expect these actions will ensure the organization is well positioned to capitalize on profitable growth when conditions improve." ■