Lincoln Electric Holdings, Inc. (LECO) has reported 9.66 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $53.40 million, or $0.81 a share in the quarter, compared with $48.69 million, or $0.68 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $53.40 million, or $0.81 a share compared with $53.82 million or $0.75 a share, a year ago.
Revenue during the quarter went down marginally by 0.73 percent to $563.83 million from $567.98 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 35.02 percent. Total expenses were 85.27 percent of quarterly revenues, down from 86.19 percent for the same period last year. This has led to an improvement of 92 basis points in operating margin to 14.73 percent.
Operating income for the quarter was $83.07 million, compared with $78.44 million in the previous year period.
However, the adjusted operating income for the quarter stood at $83.07 million compared to $85.98 million in the prior year period. At the same time, adjusted operating margin contracted 41 basis points in the quarter to 14.73 percent from 15.14 percent in the last year period.
"We finished the year with steady demand trends, solid margin and cash flow performance, and record working capital efficiency in the business," stated Christopher L. Mapes, chairman, president and chief executive officer. "Strong execution of our ‘2020 Strategy’ initiatives continues to improve Lincoln’s performance through the cycle and I am confident that our focus on innovation, operational excellence and investment returns will position us well to capitalize on growth as conditions improve in our global markets."
Operating cash flow falls marginally
Lincoln Electric Holdings, Inc. has generated cash of $303.40 million from operating activities during the year, down 2.40 percent or $7.45 million, when compared with the last year.
The company has spent $159.95 million cash to meet investing activities during the year as against cash outgo of $85.35 million in the last year. It has incurred net capital expenditure of $48.75 million on net basis during the year, up 1.15 percent or $0.55 million from year ago.
The company has spent $62.85 million cash to carry out financing activities during the year as against cash outgo of $169.91 million in the last year period.
Cash and cash equivalents stood at $379.18 million as on Dec. 31, 2016, up 24.65 percent or $75 million from $304.18 million on Dec. 31, 2015.
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