We're in another quarterly earnings reporting period, with many well-known industrial suppliers posting their latest fiscal performance figures. Here's a roundup of the key numbers posted by Lincoln Electric, Honeywell, Illinois Tool Works, Sandvik and SKF.
Lincoln Electric
Cleveland, OH-based welding products and equipment manufacturer Lincoln Electric reported its 2018 second quarter financials on Monday, showing that overall and organic sales continued to have major year-over-year (YoY) gains. The company posted total Q2 sales of $790.1 million, up 26.0 percent YoY. Organic sales jumped 9.3 percent, while acquisitions were responsible for 16 percentage points of the growth.
By business segment in Q2:
- Americas Welding sales $462.5 million increased 14.2 percent YoY, led by a 7.7-point increase from volume and a 5.4-point gain from price. Sales topped Q1's $434.8 million.
- International Welding sales of $243.4 million increased 72.0 percent YoY, led by a 68.1-point increase from acquisitions and a 5.5-point gain from price, partially offset by a 4.5-point decline in volume. Sales dipped from Q1's $247.3 million.
- The Harris Products Group sales of $84.2 million increased 4.9 percent YoY, led by a 3.5-point gain in volume and 1.5-point bump from price. Sales topped Q1's $75.6 million.
Lincoln Electric's Q2 total profit of $68.9 million increased 8.7 percent YoY and topped Q1's $60.8 million. Q2 operating profit of $94.6 million increased 12.0 percent YoY and topped Q1's $85.2 million. Q2 gross profit margin of 34.2 percent was down slightly from 34.5 percent a year earlier.
"Our second quarter results demonstrate solid execution of our core initiatives focused on organic growth and rapid integration of our European welding business,” stated Christopher Mapes, Lincoln Electric chairman, president and CEO.
Honeywell
Industrial conglomerate Honeywell posted its Q2 earnings on Friday. The company had Q2 sales of $10.92 billion, up 8.3 percent YoY. Organic sales improved approximately 6 percent. The company's total Q2 profit of $1.28 billion, down from $1.40 billion a year earlier. Operating profit margin of 16.3 percent improved 40 basis points, while segment margin of 19.6 percent improved 60 basis points.
By business segment in Q2:
- Aerospace sales of $4.06 billion improved approximately 10 percent, with organic sales up 8 percent. Segment profit improved 12 percent to $918 million and profit margin gained 30 basis points to 22.6 percent.
- Home and Building Technologies sales of $2.55 billion improved approximately 5 percent, with organic sales up 3 percent. Segment profit improved 9 percent to $427 million and profit margin gained 60 basis points to 16.8 percent.
- Performance and Materials sales of $1.62 billion improved approximately 13 percent, with organic sales up 11 percent. Segment profit improved 8 percent to $597 million, while profit margin gained 50 basis points to 22.1 percent.
- Safety and Productivity Solutions sales of $1.62 billion improved approximately 13 percent, with organic sales up 11 percent. Segment profit jumped 25 percent to $267 million, while profit margin surged 150 basis points to 16.5 percent.
Illinois Tool Works
Glenview, IL-based industrial products maker Illinois Tool Works reported its Q2 results on Monday. The company posted Q2 sales of $3.83 billion, up 6.4 percent YoY. Total profit of $666 million was up from $587 a year earlier, while Q2 operating profit of $932 million was up from $872 million a year earlier. The company said organic sales improved approximately 4 percent, while operating margin bumped up 10 basis points to 24.3 percent.
By business segment in Q2:
- Automotive OEM sales of $879 increased 7.2 percent YoY, with organic sales up 3 percent and a 20-point gain in operating margin to 22.5 percent
- Food Equipment sales of $553 million improved 4.5 percent YoY, with organic sales up 2 percent and a 100-point decline in operating margin to 25.4 percent
- Test & Measurement and Electronics sales of $554 million increased 6.7 percent, with organic sales up 4 percent and a 160-point gain in operating margin to 23.5 percent
- Welding sales of $440 million increased 14.3 percent, with organic sales up 13 percent (equipment +13%; consumbles +11%) and a 210-point gain in operating margin to 29.3 percent
- Polymers & Fluids sales of $445 million increased 1.8 percent, with organic sales up 1 percent and a 20-point dip in operating margin to 21.2 percent
- Construction Products sales of $444 million increased 4.5 percent, with organic sales up 2 percent and a 50-point gain in operating margin to 24.5 percent
- Specialty Products sales of $522 million increased 6.5 percent, with organic sales up 4 percent and a 20-point dip in operating margin to 28.1 percent
SKF
Gothenburg, Sweden-based bearings maker SKF reported its second quarter fiscal results last Thursday. The company had Q2 sales of $2.5 billion, up approximately 9 percent YoY, with organic sales up 9.0 percent. Profit of $310 million was increased from $230 million a year earlier, while operating profit of $330 million increased from $260 million a year earlier. Q2 operating profit margin of 12.9 percent jumped 150 basis points YoY.
By business segment in Q2:
- Industrial sales of $1.8 billion increased 13.7 percent YoY, with organic sales up 10.7 percent and an operating margin of 14.6 percent
- Automotive sales of $760 million increased 7.6 percent YoY, with organic sales up 5.2 percent and an operating margin of 8.9 percent
Six-month sales of $4.8 billion were down 8.4 percent YoY.
Sandvik
Stockholm, Sweden-based Sandvik reported its 2018 Q2 results last week. The company posted Q2 sales of $2.98 billion, up approximately 12 percent YoY, wth organic sales up 12 percent. SKF's total Q2 profit of $0.4 million increased 55 percent, operating profit was $0.6 million, while operating margin was 18.7 percent.
By business segment in Q2:
- Machining Solutions sales of $1.16 billion, up 13.4 percent YoY, with organic sales up 10 percent and an operating margin of 26.8 percent (23.3 a year earlier)
- Mining and Rock Technology sales of $1.23 billion, up 15.5 percent YoY, with organic sales up 16 percent and an operating margin of 17.1 percent (16.0 a year earlier)
- Materials Technology sales of $450 million, up 5.9 percent, with organic sales up 8 percent and an operating margin of 13.4 percent (-7.0 a year earlier)
- Other Operations sales of $111 million, down 29.6 percent, with organic sales up 9 percent and an operating margin of 7.3 percent (9.7 a year earlier)
