Lincoln Electric Holdings, Inc. (LECO) has reported a 4.11 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $55.84 million, or $0.84 a share in the quarter, compared with $53.64 million, or $0.76 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $58.58 million, or $0.88 a share compared with $53.64 million or $0.76 a share, a year ago.
Revenue during the quarter grew 5.48 percent to $580.90 million from $550.72 million in the previous year period. Gross margin for the quarter expanded 76 basis points over the previous year period to 35.09 percent. Total expenses were 85.97 percent of quarterly revenues, down from 86.33 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 14.03 percent.
Operating income for the quarter was $81.49 million, compared with $75.29 million in the previous year period.
However, the adjusted operating income for the quarter stood at $85.10 million compared to $75.29 million in the prior year period. At the same time, adjusted operating margin improved 98 basis points in the quarter to 14.65 percent from 13.67 percent in the last year period.
"We achieved a solid start to the year on improving demand, favorable prior year comparisons and higher profitability across all of our segments," stated Christopher L. Mapes, chairman, president and chief executive officer. "As markets continue to recover in 2017, we are advancing our '2020 Strategy' with exciting product launches and an active M&A pipeline with the proposed acquisition of Air Liquide Welding. We expect these investments will enhance our portfolio of solutions and provide us with a stronger, broader organization to serve our global customers."
Operating cash flow improves significantly
Lincoln Electric Holdings, Inc. has generated cash of $76.24 million from operating activities during the quarter, up 208.44 percent or $51.52 million, when compared with the last year period.
The company has spent $42.96 million cash to meet investing activities during the quarter as against cash outgo of $8.43 million in the last year period. It has incurred capital expenditure of $11.83 million on net basis during the quarter, up 40.43 percent or $3.41 million from year ago period.
The company has spent $17.64 million cash to carry out financing activities during the quarter as against cash outgo of $105.15 million in the last year period.
Cash and cash equivalents stood at stood at $401.44 million as at Mar. 31, 2017.
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