Lincoln Electric Q2 Earnings Beat Estimates

reported better-than-expected earnings for its second quarter. The Cleveland, Ohio-based company posted quarterly net income of $70.9 million, or $0.94 per share, versus $77.3 million, or $0.96 per share, in the year-ago period. Its adjusted net income was slipped to $0.95 per share from $1.01 per share. Its sales dropped 8.8 percent to $664.7 million from $728.5 million. However, analysts were expecting a profit of $0.91 per share on revenue of $670.03 million. The average estimate among 4 Estimize users was for earnings of $0.93 per share and revenue of $673.80 million. Its operating income dropped 13.8 percent to $96.8 million from $112.3 million. Lincoln Electric's board declared a quarterly cash dividend of $0.29 per share. During the quarter, Lincoln Electric returned $55.6 million to shareholders through the repurchase of common shares. Christopher L. Mapes, Chairman, President and Chief Executive Officer said, "Business conditions were challenging in the quarter as growth in automation was offset by weaker oil and gas and U.S. export demand. We initiated a number of actions during the quarter to align our cost structure with softer market conditions, which helped generate modest sequential improvements in our profit margins and operating working capital ratio to net sales. While we remain cautious on 2015 demand trends, we continue to invest in our strategic programs and expect our efforts will help maximize profitability and shareholder returns through the economic cycle." Lincoln Electric shares fell 1.84 percent to close at $57.72 on Friday.