Lincoln Electric Holdings Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $12.75 million or $0.30 per diluted share on net sales of $441.8 million compared with net income of $69.2 million or $1.60 per diluted share on net sales of $632.8 million in the third quarter of 2008. Operating income was $33.2 million against $89.7 million a year ago. Income before income taxes was $24.2 million against $92.8 million a year ago. Net cash provided by operating activities increased to $97.1 million compared with $96.1 million for the comparable period in 2008. Capital expenditures were $5.46 million against $22.38 million a year ago. The company reported adjusted net income of $27.04 million or $0.63 per diluted share against adjusted net income of $69.2 million or $1.60 per diluted share a year ago. For the nine months, the company reported net income of $24.2 million or $0.57 per diluted share on net sales of $1,266.8 million compared with net income of $192.8 million or $4.47 per diluted share on net sales of $1,952.9 million in the third quarter of 2008. Operating income was $53.6 million against $259.8 million a year ago. Income before income taxes was $46.08 million against $266.9 million a year ago. Net cash provided by operating activities was $231.3 million compared with $216.7 million for the comparable period in 2008. The company reported adjusted net income of $45.3 million or $1.07 per diluted share against adjusted net income of $192.8 million or $4.47 per diluted share a year ago. Capital expenditures were $26.28 million against $53.47 million a year ago.

Lincoln Electric Holdings Inc. provided capital expenditure guidance for the full year of 2009. The company invested $5.5 million and $26.3 million in capital expenditures in the third quarter and nine months ended September 30, 2009 respectively against $22.4 million and $53.5 million in the prior years third quarter and nine months respectively. The company's 2009 capital spending plan will continue to trend substantially below the prior year's spend. The company do expects to spend approximately $35 million to $40 million on capital expenditures for the full year 2009. The company does have some seasonality, and the fourth quarter tends to be the weakest quarter of the year. So, the company expects perhaps a tick down in EBIDT margins in the fourth quarter in the light of normal seasonality.

Lincoln Electric Holdings Inc., Q3 2009 Earnings Call, Oct 30 2009