LINCOLN ELECTRIC HOLDINGS INC. MANAGEMENT’S DISCUSSION AND ANALYSIS ON THE FINANCIAL POSITION AND OPERATING RESULTS (in 1000’s of {dollars}, besides quantities per share) (Type 10-Q)

This Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations ought to be learn along with the Firm's unaudited consolidated
monetary statements and different monetary data included elsewhere on this
Quarterly Report on Type 10-Q.

Basic

The Firm is the world's largest designer and producer of arc welding and
slicing merchandise, manufacturing a broad line of arc welding tools,
consumable welding merchandise and different welding and slicing merchandise. Welding
merchandise embrace arc welding energy sources, pc numerical management and
plasma cutters, wire feeding programs, robotic welding packages, built-in
automation programs, fume extraction tools, consumable electrodes, fluxes,
welding equipment and specialty welding consumables and fabrication. The
Firm's product providing additionally consists of oxy-fuel slicing programs and regulators
and torches utilized in oxy-fuel welding, slicing and brazing. As well as, the
Firm has a number one world place within the brazing and soldering alloys
market.

The Firm's merchandise are offered in each home and worldwide markets. In
the Americas, merchandise are offered principally by industrial distributors,
retailers and on to customers of welding merchandise. Outdoors of the Americas,
the Firm has a world gross sales group comprised of Firm
staff and brokers who promote merchandise from the Firm's varied manufacturing
websites to distributors and product customers.

The Firm's enterprise items are aligned into three working segments. The
working segments include Americas Welding, Worldwide Welding and The
Harris Merchandise Group. The Americas Welding phase consists of welding operations
in North and South America. The Worldwide Welding phase consists of welding
operations in Europe, Africa, Asia and Australia. The Harris Merchandise Group
consists of the Firm's world oxy-fuel slicing, soldering and brazing companies
in addition to its retail enterprise in america.

The present coronavirus illness ("COVID-19") pandemic has adversely impacted
world financial situations and has contributed to vital volatility in
monetary markets starting in early calendar yr 2020. Though the Firm's
estimates ponder present situations, the inputs into sure vital
and important accounting estimates embrace judgments and assumptions in regards to the
financial implications of the COVID-19 pandemic and the way administration expects them
to vary sooner or later. It's moderately attainable that precise outcomes
skilled might differ materially from the Firm's estimates in future
intervals, which might have an effect on our outcomes of operations and monetary situation.
For extra dialogue, see "Merchandise 1A. Danger Elements" within the Firm's Annual
Report on Type 10-Okay for the yr ended December 31, 2020.

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  Desk of Contents

Outcomes of Operations

The next desk presents the Firm’s working outcomes:




                                                        Three Months Ended September 30,
                                                                                        Favorable  (Unfavorable)
                                        2021                        2020                      2021 vs. 2020
                                Quantity      % of Gross sales      Quantity      % of Gross sales          $                %
Internet gross sales                     $  806,454                   $ 668,888                  $     137,566             20.6 %
Value of products offered               538,282                     453,501                       (84,781)           (18.7) %
Gross revenue                     268,172           33.3 %    215,387          32.2 %         52,785             24.5 %
Promoting, normal &
administrative bills          149,118           18.5 %    131,337          19.6 %       (17,781)           (13.5) %
Rationalization and asset
impairment expenses                 3,484            0.4 %      6,257           0.9 %          2,773             44.3 %
Working revenue                 115,570           14.3 %     77,793          11.6 %         37,777             48.6 %
Curiosity expense, web              5,714                       5,552                          (162)            (2.9) %
Different revenue (expense)          (71,441)                       1,062                       (72,503)        (6,827.0) %
Earnings earlier than revenue taxes        38,415            4.8 %     73,303          11.0 %       (34,888)           (47.6) %
Earnings taxes                       6,658                      14,797                          8,139             55.0 %
Efficient tax price                  17.3 %                      20.2 %                          2.9 %
Internet revenue together with
non-controlling pursuits         31,757                      58,506                       (26,749)           (45.7) %
Non-controlling pursuits in
subsidiaries' loss                     -                          27                           (27)          (100.0) %
Internet revenue                    $   31,757            3.9 %  $  58,479           8.7 %  $    (26,722)           (45.7) %
Diluted earnings per share    $     0.53                   $    0.97                  $      (0.44)           (44.9) %





                                                         9 Months Ended September 30,
                                                                                          Favorable  (Unfavorable)
                                         2021                         2020                      2021 vs. 2020
                                Quantity       % of Gross sales       Quantity       % of Gross sales          $                %
Internet gross sales                     $ 2,389,929                   $ 1,961,606                  $      428,323          21.8 %
Value of products offered              1,593,981                     1,319,519                       (274,462)        (20.8) %
Gross revenue                      795,948           33.3 %      642,087          32.7 %         153,861          24.0 %
Promoting, normal &
administrative bills           446,351           18.7 %      407,440          20.8 %        (38,911)         (9.6) %
Rationalization and asset
impairment expenses                  8,277            0.3 %       36,016           1.8 %          27,739          77.0 %
Working revenue                  341,320           14.3 %      198,631          10.1 %         142,689          71.8 %
Curiosity expense, web              16,736                        16,891                             155           0.9 %
Different revenue (expense)           (71,155)                         1,168                        (72,323)     (6,192.0) %
Earnings earlier than revenue taxes        253,429           10.6 %      182,908    
      9.3 %          70,521          38.6 %
Earnings taxes                       51,259                        41,834                         (9,425)        (22.5) %
Efficient tax price                   20.2 %                        22.9 %                           2.7 %
Internet revenue together with
non-controlling pursuits         202,170                       141,074                          61,096          43.3 %
Non-controlling pursuits in
subsidiaries' loss                    131                            37                              94         254.1 %
Internet revenue                    $   202,039            8.5 %  $   141,037           7.2 %  $       61,002          43.3 %
Diluted earnings per share    $      3.36                   $      2.34    
             $         1.02          43.7 %










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Internet Gross sales:

The next desk summarizes the affect of volumes, acquisitions, costs and trade charges on consolidated gross sales:




Three Months Ended September 30,                               Change in 

Internet gross sales Attributable to:

                                     Internet Gross sales                                                Overseas     Internet Gross sales
                                        2020        Quantity      Acquisitions      Worth      Alternate        2021
Lincoln Electrical Holdings, Inc.      $  668,888    $ 48,506    $       13,251    $ 73,771      $ 2,038    $  806,454
% Change
Lincoln Electrical Holdings, Inc.                         7.3 %             2.0 %      11.0 %        0.3 %        20.6 %





9 Months Ended
September 30,                                             Change in Internet Gross sales because of:
                              Internet Gross sales                                                   Overseas      Internet Gross sales
                                 2020         Quantity       Acquisitions       Worth      Alternate         2021
Lincoln Electrical
Holdings, Inc.               $  1,961,606    $ 221,408    $       16,836    $ 158,920     $ 31,159    $  2,389,929
% Change
Lincoln Electrical
Holdings, Inc.                                    11.3 %             0.9 %        8.1 %        1.6 %          21.8 %


Internet gross sales elevated within the three and 9 months ended September 30, 2021 pushed
by increased demand reflecting restoration from the impacts of the pandemic, elevated
product pricing on account of increased enter prices and favorable overseas
trade. The rise in Internet gross sales from acquisitions was pushed by the
acquisitions of Zeman Bauelemente inside Worldwide Welding and FTP and
Shoals inside The Harris Merchandise Group. Check with Be aware 4 to the consolidated
monetary statements for particulars.

Gross revenue:

Gross revenue for the three and 9 months ended September 30, 2021 elevated
24.5% and 24.0%, respectively, and to 33.3% as a p.c of gross sales, pushed by
increased volumes and pricing actions which offset increased enter prices. Final-in,
first-out ("LIFO") expenses have been $10,908 and $24,236 within the three and 9 months
ended September 30, 2021, respectively, as in contrast with expenses of $597 and
$732 in the identical 2020 intervals, respectively.

Promoting, normal and administrative bills (“SG&A”):

Basic and administrative bills elevated for the three and 9 months ended September 30, 2021
in comparison with the identical intervals in 2020, primarily because of increased personnel prices.

Asset rationalization and depreciation prices:

The Firm recorded expenses of $3,484 ($3,383 after-tax) and $8,277 ($8,033
after-tax) within the three and 9 months ended September 30, 2021, respectively,
primarily associated to severance expenses and positive aspects or losses on the disposal of
belongings. The Firm recorded expenses of $6,257 ($5,142 after-tax) and $36,016
($28,181 after-tax) within the three and 9 months ended September 30, 2020,
respectively, primarily associated to severance expenses, non-cash asset impairments
of long-lived belongings, and positive aspects or losses on the disposal of belongings.

Different revenue (bills):

The lower in Different revenue (expense) for the three and 9 months ended
September 30, 2021 as in comparison with September 30, 2020 was primarily because of
non-cash pension settlement expenses ensuing from lump sum pension funds
associated to the termination of the Lincoln Electrical Firm Retirement Annuity
Program ("RAP") plan. Check with Be aware 13 to the consolidated monetary statements
for particulars.

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  Desk of Contents

Earnings Taxes:

The efficient tax price was decrease for the three and 9 months ended September
30, 2021 as in comparison with the identical 2020 intervals, primarily because of favorable
discrete tax changes in 2021, in addition to increased tax expense related to
a valuation allowance recorded within the 9 months ended September 30, 2020.

Phase outcomes


Three Months Ended September 30,                                Change in Internet Gross sales because of:
                                  Internet Gross sales                                                        Overseas      Internet Gross sales
                                     2020        Quantity (1)     Acquisitions (2)     Worth (3)     Alternate        2021
Working Segments
Americas Welding                  $  371,535    $     42,341   $                -   $    43,957   $    3,675    $  461,508
Worldwide Welding                196,937           7,452                3,371        21,205      (1,800)       227,165
The Harris Merchandise Group            100,416         (1,287)                9,880         8,609          163       117,781

% Change
Americas Welding                                        11.4 %                  -          11.8 %        1.0 %        24.2 %
Worldwide Welding                                    3.8 %                1.7 %        10.8 %      (0.9) %        15.3 %
The Harris Merchandise Group                              (1.3) %                9.8 %         8.6 %        0.2 %        17.3 %




9 Months Ended September 30,                                  Change in
Internet Gross sales because of:
                                  Internet Gross sales                                                          Overseas       Internet Gross sales
                                    2020         Quantity (1)      Acquisitions (2)      Worth (3)     Alternate         2021
Working Segments
Americas Welding                 $ 1,123,299    $    128,836    $                -    $    80,352    $  11,731    $  1,344,218
Worldwide Welding                572,027          63,797                 6,956         40,537       19,279         702,596
The Harris Merchandise Group            266,280          28,775                 9,880         38,031          149         343,115

% Change
Americas Welding                                        11.5 %                   -            7.2 %        1.0 %          19.7 %
Worldwide Welding                                   11.2 %                 1.2 %          7.1 %        3.4 %          22.8 %
The Harris Merchandise Group                               10.8 %                 3.7 %         14.3 %        0.1 %          28.9 %






Will increase for 3 and 9 months ended September 30, 2021 for Americas

(1) Worldwide Welding and Welding is especially because of increased demand

reflecting the restoration from the impacts of the COVID-19 pandemic.

Improve for the three and 9 months ended September 30, 2021 have been because of

(2) the acquisition of Zeman Bauelemente in Worldwide Welding and FTP and

     Shoals in The Harris Merchandise Group, as mentioned in Be aware 4 to the
     consolidated monetary statements.

Improve for the three and 9 months ended September 30, 2021 in Americas

Welding and worldwide welding mirror the rise in product costs as

(3) results of increased enter prices. Improve for The Harris Product Group within the

     three and 9 months ended September 30, 2021 was because of elevated commodity
     prices.


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Adjusted earnings earlier than curiosity and revenue taxes:

Phase efficiency is measured and assets are allotted primarily based on quite a few
components, the first measure being the Adjusted EBIT revenue measure. EBIT is
outlined as Working revenue plus Different revenue (expense). EBIT is adjusted for
particular objects as decided by administration such because the affect of rationalization
actions, sure asset impairment expenses and positive aspects or losses on disposals of
belongings.

The next desk exhibits Adjusted EBIT by phase:




                                                                                        Favorable (Unfavorable)
                                             Three Months Ended September 30,                 2021 vs. 2020
                                                2021                   2020                 $                %
Americas Welding:
Internet gross sales                                 $         461,508      $         371,535    $       89,973           24.2 %
Inter-segment gross sales                                  37,480                 29,368             8,112           27.6 %
Complete Gross sales                               $         498,988      $         400,903            98,085           24.5 %
Adjusted EBIT (3)                         $          84,557      $          59,120            25,437           43.0 %
As a p.c of complete gross sales (1)                        16.9 %              
  14.7 %                            2.2 %
Worldwide Welding:
Internet gross sales                                 $         227,165      $         196,937            30,228           15.3 %
Inter-segment gross sales                                   7,078                  4,898             2,180           44.5 %
Complete Gross sales                               $         234,243      $         201,835            32,408           16.1 %
Adjusted EBIT (4)                         $          29,032      $          13,432            15,600          116.1 %
As a p.c of complete gross sales (1)                        12.4 %              
   6.7 %                            5.7 %
The Harris Merchandise Group:
Internet gross sales                                 $         117,781      $         100,416            17,365           17.3 %
Inter-segment gross sales                                   1,945                  1,898                47            2.5 %
Complete Gross sales                               $         119,726      $         102,314            17,412           17.0 %
Adjusted EBIT (5)                         $          15,980      $          17,587           (1,607)          (9.1) %
As a p.c of complete gross sales (2)                        13.3 %              
  17.2 %                          (3.9) %
Company / Eliminations:
Inter-segment gross sales                       $        (46,503)      $        (36,164)          (10,339)         (28.6) %
Adjusted EBIT                                       (4,704)                (1,839)           (2,865)        (155.8) %
Consolidated:
Internet gross sales                                 $         806,454      $         668,888           137,566           20.6 %
Internet revenue                                $          31,757      $          58,479          (26,722)         (45.7) %
As a p.c of complete gross sales                             3.9 %                  8.7 %                          (4.8) %
Adjusted EBIT (6)                         $         124,865      $          88,300            36,565           41.4 %
As a p.c of gross sales                                  15.5 %                 13.2 %                            2.3 %



Improve for the three months ended September 30, 2021 in comparison with

(1) September 30, 2020 primarily pushed by increased volumes and pricing actions

offset rising prices of inputs and staff. The rise for the Worldwide

Welding has additionally been pushed by value discount initiatives.

Lower for the three months ended September 30, 2021 in comparison with

(2) September 30, 2020 primarily as a result of increased prices of inputs, product combine and

integration actions.

The three months ended September 30, 2021 and 2020 exclude the fee of pensions

prices $ 73,562 and $ 3,188, respectively. The three months led to September

(3) As of 30, 2020 additionally excludes the fees for Rationalization and impairment of belongings of $ 3,856

     associated to severance expenses as mentioned in Be aware 6 to the consolidated
     monetary statements.


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The three months ended September 30, 2021 and 2020 exclude rationalization

and asset impairment expenses of $ 3,472 and $ 2,401, respectively, associated to

severance funds and positive aspects or losses on the disposal of belongings as indicated in

(4) Be aware 6 to the consolidated monetary statements. The three months ended

September 30, 2021 additionally exclude the depreciation of the rise in worth of

shares acquired from $ 3,143 associated to the acquisition of Zeman

Bauelemente as indicated in be aware 4 of the consolidated monetary statements.

The three months ended September 30, 2021 exclude step up damping

(5) in worth of shares acquired from $ 547 associated to the acquisition of FTP

and Shoals as defined in be aware 4 to the consolidated monetary statements.

(6) See non-GAAP monetary measures for a reconciliation of web revenue

     reported and Adjusted EBIT.




                                                                                       Favorable (Unfavorable)
                                             9 Months Ended September 30,                 2021 vs. 2020
                                                2021                  2020                 $                %
Americas Welding:
Internet gross sales                                 $       1,344,218     $       1,123,299    $      220,919           19.7 %
Inter-segment gross sales                                 109,993                81,644            28,349           34.7 %
Complete Gross sales                               $       1,454,211     $       1,204,943           249,268           20.7 %
Adjusted EBIT (3)                         $         245,308     $         176,524            68,784           39.0 %
As a p.c of complete gross sales (1)                        16.9 %              
 14.6 %                            2.3 %
Worldwide Welding:
Internet gross sales                                 $         702,596     $         572,027           130,569           22.8 %
Inter-segment gross sales                                  18,260                13,667             4,593           33.6 %
Complete Gross sales                               $         720,856     $         585,694           135,162           23.1 %
Adjusted EBIT (4)                         $          77,845     $          29,729            48,116          161.8 %
As a p.c of complete gross sales (1)                        10.8 %              
  5.1 %                            5.7 %
The Harris Merchandise Group:
Internet gross sales                                 $         343,115     $         266,280            76,835           28.9 %
Inter-segment gross sales                                   6,376                 5,376             1,000           18.6 %
Complete Gross sales                               $         349,491     $         271,656            77,835           28.7 %
Adjusted EBIT (5)                         $          52,889     $          41,792            11,097           26.6 %
As a p.c of complete gross sales (2)                        15.1 %              
 15.4 %                          (0.3) %
Company / Eliminations:
Inter-segment gross sales                       $       (134,629)     $       (100,687)          (33,942)         (33.7) %
Adjusted EBIT (6)                                  (10,048)               (4,902)           (5,146)        (105.0) %
Consolidated:
Internet gross sales                                 $       2,389,929     $       1,961,606           428,323           21.8 %
Internet revenue                                $         202,039     $         141,037            61,002           43.3 %
As a p.c of complete gross sales                             8.5 %                 7.2 %                            1.3 %
Adjusted EBIT (7)                         $         365,994     $         243,143           122,851           50.5 %
As a p.c of gross sales                                  15.3 %                12.4 %                            2.9 %

Improve for the 9 months ended September 30, 2021 in comparison with

(1) September 30, 2020 primarily resulted in increased volumes and pricing actions, which

compensate for rising enter prices and value discount actions.

(2) Lower for the 9 months ended September 30, 2021 in comparison with

September 30, 2020 primarily because of rising enter prices and product combine.

The 9 months ended September 30, 2021 and 2020 exclude the fee of pensions

prices $ 79,652 and $ 6,522, respectively. The 9 months ended September

(3) As of 30 2020 additionally exclude the prices of Rationalization and impairment of belongings of $ 27,719

associated to severance funds and impairment of non-cash belongings

     belongings as mentioned in Be aware 6 to the consolidated monetary statements.


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  Desk of Contents

The 9 months ended September 30, 2021, and 2020 exclude rationalization

and asset impairment expenses of $ 8,265 and $ 8,297, respectively, associated to

severance funds, impairment of belongings and capital positive aspects or losses on the disposal of belongings

mentioned in Be aware 6 to the consolidated monetary statements. The 9 months

(4) completed September 30, 2021 and 2020 additionally excludes the amortization of the step up

in worth of shares acquired from $ 4,984 and $ 806, respectively, associated to

acquisitions, as indicated in be aware 4 to the consolidated monetary statements.

The 9 months ended September 30, 2021 exclude pension settlement prices

of $ 446.

The 9 months ended September 30, 2021 excludes step up damping

(5) in worth of shares acquired from $ 547 associated to the acquisition of FTP

and Shoals as mentioned in Be aware 4 to the consolidated monetary statements.

(6) The 9 months ended September 30, 2021 exclude the acquisition transaction

prices $ 1,923 associated to acquisitions.

(7) See non-GAAP monetary measures for a reconciliation of web revenue akin to

Revealed and adjusted EBIT.

Non-GAAP monetary measures

The Firm opinions Adjusted working revenue, Adjusted web revenue, Adjusted
EBIT, Adjusted efficient tax price, Adjusted diluted earnings per share, Return
on invested capital, Money conversion, Natural gross sales, and Earnings earlier than
curiosity, taxes, depreciation and amortization, all non-GAAP monetary measures,
in assessing and evaluating the Firm's underlying working efficiency.
These non-GAAP monetary measures exclude the affect of particular objects on the
Firm's reported monetary outcomes. Non-GAAP monetary measures ought to be learn
along side the widely accepted accounting rules in the United
States ("GAAP") monetary measures, as non-GAAP measures are a complement to,
and never a substitute for, GAAP monetary measures.

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Contents

The next desk presents the reconciliations of Working revenue as reported
to Adjusted working revenue, Internet revenue as reported to Adjusted web revenue and
Adjusted EBIT, Efficient tax price as reported to Adjusted efficient tax price and
Diluted earnings per share as reported to Adjusted diluted earnings per share:




                                            Three Months Ended September 30,           9 Months Ended September 30,
                                               2021                   2020                2021                  2020
Working revenue as reported             $         115,570      $         77,793    $         341,320      $       198,631
Particular objects (pre-tax):
Rationalization and asset impairment
expenses (1)                                          3,484                 6,257                8,277               36,016
Acquisition transaction prices (2)                        -                     -                1,923                    -
Amortization of step up in worth of
acquired inventories (3)                             3,690                     -                5,531                  806
Adjusted working revenue                $         122,744      $         84,050    $         357,051      $       235,453
Internet revenue as reported                   $          31,757      $         58,479    $         202,039      $       141,037
Particular objects:
Rationalization and asset impairment
expenses (1)                                          3,484                 6,257                8,277               36,016
Acquisition transaction prices (2)                        -                     -                1,923                    -
Pension settlement expenses (4)                      73,562                 3,188               80,098                6,522
Amortization of step up in worth of
acquired inventories (3)                             3,690                     -                5,531                  806
Tax impact of Particular objects (5)                   (18,743)               (1,911)             (20,737)              (9,463)
Adjusted web revenue                                 93,750                66,013              277,131              174,918
Non-controlling pursuits in
subsidiaries' revenue (loss)                              -                    27                  131                   37
Curiosity expense, web                                5,714                 5,552               16,736               16,891
Earnings taxes as reported                             6,658                14,797               51,259               41,834
Tax impact of Particular objects (5)                     18,743                 1,911               20,737                9,463
Adjusted EBIT                            $         124,865      $         88,300    $         365,994      $       243,143
Efficient tax price as reported                        17.3 %               
20.2 %               20.2 %               22.9 %
Internet particular merchandise tax affect                            4.0 %                   - %                0.4 %              (0.2) %
Adjusted efficient tax price                           21.3 %                20.2 %               20.6 %               22.7 %
Diluted earnings per share as
reported                                 $            0.53      $           0.97    $            3.36      $          2.34
Particular objects per share                               1.03                  0.13                 1.25                 0.57
Adjusted diluted earnings per share      $            1.56      $          
1.10    $            4.61      $          2.91



(1) Bills primarily associated to severance pay as described in be aware 6 of the

consolidated monetary statements.

(2) Prices associated to acquisitions are included on the whole and administrative bills.

(3) Prices associated to acquisitions are included in value of products offered.

(4) Settlement prices associated to lump sum pension funds associated to

termination of a pension plan and are included in different revenue (bills).

(5) Consists of the online tax affect of particular objects recorded throughout

intervals.

The tax impact of Particular objects impacting pre-tax revenue was calculated because the
pre-tax quantity multiplied by the relevant tax price. The relevant tax charges
mirror the taxable jurisdiction and nature of every Particular merchandise.

Liquidity and capital assets

The Firm's money stream from operations could be cyclical. Operational money stream
is a key driver of liquidity, offering money and entry to capital markets. In
assessing liquidity, the Firm opinions working capital measurements to outline
areas for enchancment. Administration anticipates the Firm will be capable of
fulfill money necessities for its ongoing

                                       31

Contents

companies for the foreseeable future primarily by money generated from operations, present money balances, borrowings underneath its present credit score services and elevated debt within the capital markets.

The Firm continues to develop globally and periodically seems at transactions
that will contain vital investments. The Firm can fund its world
enlargement plans with operational money stream, however a major acquisition might
require entry to capital markets, particularly, the long-term debt market, as
properly because the syndicated financial institution mortgage market. The Firm's financing technique is to
fund itself on the lowest after-tax value of funding. The place attainable, the Firm
makes use of operational money flows and raises capital in essentially the most environment friendly market,
often america, after which lends funds to the particular subsidiary that
requires funding. If extra acquisitions offering acceptable monetary
advantages turn into accessible, extra expenditures could also be made.

The next desk displays the adjustments in the important thing money stream measures:



                                                            9 Months Ended September 30,
                                                           2021           2020         $ Change
Money offered by working actions (1)               $   255,125    $   215,561    $    39,564
Money utilized by investing actions (2)                     (194,698)       (30,159)      (164,539)
Capital expenditures                                       (46,440)       (37,116)        (9,324)
Acquisition of companies, web of money acquired           (158,605)              -      (158,605)
Money utilized by financing actions (3)                     (156,112)      (227,317)         71,205
Proceeds from short-term borrowings, web                     32,295       (33,123)         65,418
Buy of shares for treasury                           (103,848)      (113,198)          9,350
Money dividends paid to shareholders                        (91,717)       (88,945)        (2,772)
Lower in Money and money equivalents (4)                  (96,720)       (47,084)       (49,636)



Money stream from working actions elevated for the 9 months ended

(1) September 30, 2021, in comparison with the 9 months ended September 30, 2020

     primarily because of increased firm earnings.


     Money utilized by investing actions elevated for the 9 months ended

September 30, 2021, in comparison with the 9 months ended September 30, 2020

primarily because of money used for enterprise acquisitions. The corporate

(2) at present supplies for capital expenditure of $ 65,000 To $ 70,000 in 2021.

Deliberate capital expenditures embrace investments for capital upkeep

and tasks aimed toward rising effectivity, decreasing prices, selling enterprise development or

enhance the overall security and environmental situations of

services.

Money utilized by financing actions decreased within the nine-month interval ended

(3) September 30, 2021, in comparison with the 9 months ended September 30, 2020

as a result of improve in proceeds from short-term borrowings.

Money and money equivalents decreased by 37.6%, or $ 96,720, To $ 160,559 through the

9 months accomplished September 30, 2021, of $ 257,279 from December 31, 2020.

This lower is especially attributable to the money used for the acquisition of

(4) corporations, purchases of widespread shares for money and money dividends paid

to shareholders, partially offset by money stream from working actions.

     At September 30, 2021, $155,914 of Money and money equivalents was held by
     worldwide subsidiaries.

In October 2021, the Firm paid a money dividend of $ 0.51 per share, or
$ 30,115, to shareholders of document on September 30, 2021.

Working Capital Ratios




                                            September 30, 2021    December 31, 2020   September 30, 2020
Common working working capital to Internet
gross sales (1) (2)                                             18.6 %               17.4 %               20.3 %
Days gross sales in Inventories (2)                            124.7                104.7                111.6
Days gross sales in Accounts receivable                         53.9                 53.5                 55.2
Common days in Commerce accounts payable                    60.1             
   56.5                 51.3


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Common working working capital in relation to web gross sales is outlined because the sum of

(1) Accounts receivable, Inventories and contract belongings much less Accounts receivable

payable and contractual liabilities on the finish of the interval divided by the annualized worth

three rolling months of web gross sales.

To attenuate potential provide chain disruptions in customer support

(2) as a result of COVID-19 pandemic, the Firm has elevated its shares in comparison with

The anticipated web gross sales led to a rise in gross sales of days in inventory and had a

unfavorable affect on common working WCR on web gross sales.

Flip over Invested capital

The Firm opinions return on invested capital ("ROIC") in assessing and
evaluating the Firm's underlying working efficiency. ROIC is a non-GAAP
monetary measure that the Firm believes is a significant metric to buyers
in evaluating the Firm's monetary efficiency and could also be completely different than the
technique utilized by different corporations to calculate ROIC. ROIC is outlined as rolling
12 months of Adjusted web revenue excluding tax-effected curiosity revenue and
expense divided by invested capital. Invested capital is outlined as complete debt,
which incorporates Quick-term debt and Lengthy-term debt, much less present parts, plus
Complete fairness.

The next desk exhibits the ROIC:



                                                               Twelve Months Ended September 30,
                                                                 2021                      2020
Internet revenue                                               $            267,117      $            204,753
Rationalization and asset impairment expenses                           17,729                    44,867
Acquisition transaction prices                                           1,923                         -
Pension settlement expenses                                             81,695                     6,522
Amortization of step up in worth of acquired
inventories                                                             5,531                       806
Tax impact of Particular objects (1)                                      (21,868)                  (11,030)
Adjusted web revenue                                      $            352,127      $            245,918
Plus: Curiosity expense, web of tax of $5,893 and
$6,177 in 2021 and 2020, respectively                                  17,520                    18,564

Much less: Curiosity revenue, web of tax of $ 402 and $ 513 in 2021 and 2020, respectively

                                             1,193                     1,543
Adjusted web revenue earlier than tax effected curiosity         $            368,454      $            262,939

Invested Capital                                          September 30, 2021        September 30, 2020
Quick-term debt                                          $             41,404      $              1,147
Lengthy-term debt, much less present portion                                  717,787                   715,687
Complete debt                                                            759,191                   716,834
Complete fairness                                                          857,893                   710,744
Invested capital                                         $          1,617,084      $          1,427,578
Return on invested capital                                               22.8 %                    18.4 %



(1) Consists of the online tax affect of particular objects recorded throughout

intervals.

The tax impact of Particular objects impacting pre-tax revenue was calculated because the
pre-tax quantity multiplied by the relevant tax price. The relevant tax charges
mirror the taxable jurisdiction and nature of every Particular merchandise.

New accounting statements

Check with Be aware 1 to the consolidated monetary statements for a dialogue of recent
accounting pronouncements.

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Acquisitions

Check with Be aware 4 to the consolidated monetary statements for an evaluation of the Firm’s latest acquisitions.

Debt

Revolving credit score settlement

On April 23, 2021, the Firm amended and restated the settlement governing its
line of credit score by coming into into the Second Amended and Restated Credit score Settlement
("Credit score Settlement"). The Credit score Settlement has a line of credit score totaling
$500,000, has a time period of 5 years with a maturity date of April 23, 2026 and will
be elevated, topic to sure situations together with the consent of its
lenders, by a further quantity as much as $150,000. The rate of interest on borrowings
relies on LIBOR plus a variety primarily based on the Firm's web leverage ratio. The
Credit score Settlement accommodates customary representations and warranties, in addition to
customary affirmative, detrimental and monetary covenants for credit score services of
this sort (topic to negotiated baskets and exceptions), together with limitations
on the Firm and its subsidiaries with respect to liens, investments,
distributions, mergers and acquisitions, inclinations of belongings and transactions
with associates. As of September 30, 2021, the Firm was in compliance with
all of its covenants and had $20,000 of excellent borrowings underneath the Credit score
Settlement.

The Firm has different traces of credit score totaling $ 97,848. From September 30, 2021, the Firm was in compliance with all of its restrictive covenants and $ 20,644
distinctive at September 30, 2021.

Senior unsecured notes

On April 1, 2015 and October 20, 2016, the Firm entered into separate
Be aware Buy Agreements pursuant to which it issued senior unsecured notes (the
"Notes") by a personal placement. The 2015 Notes and 2016 Notes every have an
combination principal quantity of $350,000, comprised of 4 completely different collection
starting from $50,000 to $100,000, with maturity dates starting from August 20,
2025 by April 1, 2045, and rates of interest starting from 2.75% and 4.02%.
Curiosity on the Notes is paid semi-annually. The Firm's complete weighted
common efficient rate of interest and remaining weighted common tenure of the
Notes is 3.3% and 12.6 years, respectively. The proceeds of the Notes have been used
for normal company functions. The Notes comprise sure affirmative and
detrimental covenants. As of September 30, 2021, the Firm was in compliance with
all of its debt covenants regarding the Notes.

Division agreements

On November 27, 2018, the Firm entered into seven uncommitted grasp be aware
services (the "Shelf Agreements") that permit borrowings as much as $700,000 within the
combination. The Shelf Agreements have a time period of 5 years and the common lifetime of
borrowings can not exceed 15 years. The Firm is required to adjust to
covenants just like these contained within the Notes. As of September 30, 2021, the
Firm was in compliance with all of its covenants and had no excellent
borrowings underneath the Shelf Agreements.

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Pensions

In March 2020, the Firm accredited an modification to terminate the Lincoln
Electrical Firm Retirement Annuity Program plan efficient as of December 31,
2020. The Firm offered discover to contributors of the intent to terminate the
plan and utilized for a willpower letter. Pension obligations have been
distributed by lump sum funds to eligible plan contributors throughout 2021
and resulted in pre-tax pension settlement expenses of $73,562 and $79,652 within the
three and 9 months ended September 30, 2021, respectively. In October 2021,
the remaining pension obligations have been distributed by the acquisition of a
group annuity contract and the Firm will reclassify any remaining
unrecognized actuarial positive aspects or losses, at present recorded in AOCI, web of tax,
to the Firm's Consolidated Statements of Earnings as settlement expenses. The
Firm estimates the fourth quarter 2021 pre-tax settlement cost to be
roughly $35,000 - $45,000. The Firm anticipates utilizing any remaining
belongings after liquidation to fund employer contributions in a unique certified
plan. The Firm expects the termination course of might be considerably full
by the tip of 2021.

Ahead-looking Statements

The Firm's expectations and beliefs in regards to the future contained on this
report are forward-looking statements throughout the which means of the Personal
Securities Litigation Reform Act of 1995. These statements mirror administration's
present expectations and contain quite a few dangers and uncertainties.
Ahead-looking statements usually could be recognized by means of phrases such
as "might," "will," "count on," "intend," "estimate," "anticipate," "consider,"
"forecast," "steering" or phrases of comparable which means. Precise outcomes might differ
materially from such statements because of a wide range of components that would adversely
have an effect on the Firm's working outcomes. The components embrace, however will not be restricted
to: normal financial, monetary and market situations; the effectiveness of
working initiatives; completion of deliberate divestitures; rates of interest;
disruptions, uncertainty or volatility within the credit score markets which will restrict our
entry to capital; forex trade charges and devaluations; opposed final result of
pending or potential litigation; precise prices of the Firm's rationalization
plans; attainable acquisitions, together with the Firm's capability to efficiently
combine acquisitions; market dangers and worth fluctuations associated to the
buy of commodities and power; world regulatory complexity; the consequences of
adjustments in tax legislation; tariff charges within the international locations the place the Firm conducts
enterprise; and the attainable results of occasions past our management, akin to
political unrest, acts of terror, pure disasters and pandemics, together with the
COVID-19 pandemic, on the Firm or its prospects, suppliers and the economic system in
normal. For extra dialogue, see "Merchandise 1A. Danger Elements" within the Firm's
Annual Report on Type 10-Okay for the yr ended December 31, 2020.

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