uploads///Post Q Revenues

Lower Volumes Still Impacted Lincoln Electric’s Revenues in 2Q16

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Jul. 27 2016, Published 1:00 p.m. ET

Lincoln Electric’s 2Q16 revenue at a glance

Lincoln Electric’s (LECO) 2Q16 revenue for 2Q16 was $592.4 million, nearly 0.5% above the Market consensus of $589.7 million. Revenue for the quarter decreased 10.9% compared to 2Q15 due to unfavorable foreign exchange translations and lower volumes.

Underperformance in the macro industrial segment, particularly in machinery, led to sales erosion. This is due to woes in automation, exports, and oil and gas, as well as a weak demand in emerging markets.

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Lincoln Electric’s 1H16 revenues at a glance

In the first half of 2016, LECO revenues decreased 13.6% to $1.1 billion. This compares to $1.3 billion in the first half of 2015.

Lincoln Electric and its peers

LECO’s large-capitalization industrial (XLI) peers are General Electric (GE), Honeywell (HON), and Illinois Tool Works (ITW). GE declared its results on July 22, 2016. Its 2Q16 revenue stood at $33.4 billion, nearly 5.3% above the Market consensus of $31.8 billion. Revenues were marginally impacted due to unfavorable foreign exchange translations.

HON also declared its results on July 22, 2016. Its 2Q16 revenues were $9.9 billion, up 2.0% compared to $9.7 billion in 2Q15. The increase in revenues was primarily inorganic.

ITW announced its results on July 20, 2016. Its 2Q16 revenues were $3.4 billion, marginally down by 0.1% compared to 2Q15. ITW’s organic sales growth was 2%.

Let’s look next at LECO’s segmental performance.

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