Lincoln Electric (LECO) 27 Apr 212021 Q1 Earnings call transcript

Greetings, and welcome to the Lincoln Electric 2021 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. And this call is being recorded. It is my pleasure to introduce your host, Amanda Butler, Vice President of Investor Relations and Communications. Thank you.

begin. may You

as and Electric's first Stefanie financial everyone. to Investor as our Welcome earlier slide section. this Thank as Relations at presentation XXXX good lincolnelectric.com conference Electric's well release find can quarter and the our attachment call. Lincoln to today, call's Lincoln you, on you morning an website We results the released in

happy our Officer; results Chief overview take Mapes, questions. on Officer. Lincoln's is Chairman, financial and more And the Gabe to will Chief and of trends, performance me begin Bruno, Joining will detail. quarter your Gabe Chris following Executive Financial an Chris our we're the and call President with prepared first our cover in and today discussion business our remarks,

our to that differ press risk results number actual XX-Q. our made Before certain release forward-looking may forms may in that due our filings please XX-K may factors. and results call risks on discussion we some note are affect and expectations SEC our statements a be provided our start of this during the of and and uncertainties A in of materially from discussion,

our measures is A available not is in the to again that at discuss to the Relations US the Mapes. And conform website financial of call GAAP. lincolnelectric.com. I'll Chris? in to found turn In Chris we most comparable addition, earnings over our reconciliation which release, financial measures non-GAAP with measure of do the GAAP tables that, section in Investor

navigating the remain safety expectations an challenging globally first COVID morning, as pleased essential recovered momentum. as still quarter our We a environment. exceeded customers and that quarter business Good report solid I'm the Amanda. you, and while our on everyone. reinforcing Thank demand servicing focused accelerated through operated results to

execution team's results. very yielded strong Our

approximate of to led in flat by sales, exceeding the Sales a growth assumption to operating we first and our organic adjusted performance. income. price operational increase positive Turning in Diligent quarter. growth generated in X.X% X, management returned XX% an to Slide slightly increased X.X% initiatives

at XXX first with margin, income Our record increased earnings $X.XX, improved invested to capital performance. a Adjusted on very adjusted XX% Return per dividends. margin operations flow points XX.X% operating quarter strong in a flow and share to strong incremental above cash remained basis performance. XX.X% $XX to We out free shareholders year from with cash returned XX.X% levels. share performed paid and million repurchases million in million $XX $XX and prior approximately

to than early continues to automotive in was cycle. backlog the quarter sequentially. X.X% part Demand reportable growth demand we're our quarter the all at by strength product increased in regions agriculture percent second with demand return organic construction in XX% yet improved growth. to Looking first heavy the where automation anticipated. and growing In business. continued with And with Equipment and record Energy achieved sales and on increased acceleration equipment spending. revenue geographic heightened segments, main increased see demand capitalize of Customer faster the led of families through and Slide on solutions. improved the several the capital quarter, expectations. momentum growth quarter for markets categories X.X% volume strong of order levels levels to slightly organic the prior quarter to of the equipment. exposed economy positions this as March end mid-teens first product entering on to This We're sales remains industries X, and the sentiment challenged. areas year our sales mining, rebounds other cautious performance customers outperform be well positive, pleased above us as in

four-year persistent expect join expands include acquisition business quarter and sales with our We're solution percent on XX% operating two actions and quarter assuming business the top income than have mitigate standard range does high the Given Electric also PythonX mid growth rate levels slightly first by with may as Structural now we in incremental portfolio The seasonality actions through team This not productivity updating our assumptions the automated to This in sales beams quarter to we've future leverage. We're key April Lincoln is in downstream range. adjusted Acquisitions which automated driver Zeman XX% now complimentary XD in pricing to raw inflation, plasma average. teens fabricating closed consolidated of expected a results. to our to solution. products be sales cutting at to with approximately reflect second first our increasing Zeman's incremental structural line margin also our strength warranted. the our margins excited quality cutting and X. to automation business be of factors organic operating that consistent their higher now we We're are Lincoln with charges balance the any customers high provide and The and projects. range Automation and taken also steel year. higher infrastructure pricing in Zeman range Steel at volume unparalleled to the the the the assumption we're this incremental be material low be LIFO for

by to be We acquisition to accretive year. to this expect earnings on an the $X.XX $X.XX adjusted basis

dynamic momentum. market, While by encouraged very a the we're near-term still it's

other as XXXX we well areas today. remain infrastructure capitalize estimate of investments, confident to is XX% to exposed and catalysts standard two where these our investments, strategy related that energy driving higher also secular conservatively growth We on XX% initiatives trends long-term, revenue renewable as and capital such automation, our with as large

standard pass and So in cover we're financials be goals. Gabe excited to call driving to And growth now, towards to the to I'll first mode detail. strategy in back higher look the our XXXX more quarter forward

Chris. you, Thank

X.X% X.X% impact and foreign from increased quarter due consolidated sales exchange. first to X.X% X.X% volumes price, Moving from to a favorable Slide a benefit X, higher our

margin higher freight and gross XX Price points expect negative continued profit costs cost were was $X.X on benefits to basis. a be but to including as year price cost full the basis a from charge. material to and XX.X% volumes we raw cost decreased offset million neutral slightly in LIFO reduction actions Our quarter, by

SG&A to in million sales expense SG&A well employee Our $X million as by compensation was declined as X.X% and $X actions, higher reduction $X a foreign which savings partially approximately percent incentive approximately cost XX.X%. basis points decreased exchange. from as million unfavorable cost XXX or of reflecting offset in

operating XX.X% to to of higher increased Operating XXX.X to expense charges million SG&A due compensation. or income transaction million XX.X% wage rationalization million XXXX expect $X.X We increase of Reported costs. included sales. acquisition and $X.X and results incentive income of

operating benefited volumes XX.X% and a diligent XX.X% incremental to adjusted items operating from which XXX Excluding and a increase versus point Adjusted increased XXX.X or price cost special of improved year. million basis income the XX.X% income generated sales, management prior margin.

or year Our first quarter basis, This mix tax our discrete rate an period. to XX.X% XX.X% in items. in of on effective compares was earnings due the prior XX.X% adjusted with

extent in rate We mid year be of effective and the of mix anticipated tax the discrete tax subject XXXX to to continue expect items. full range, to low earnings our XX% to

prior with XX.X% in increased diluted First share $X.XX compared $X.XX earnings the to per year. Quarter

Excluding special to earnings share adjusted diluted items per XX% $X.XX. increase

which EBIT EBIT Slide Americas lower by X.X% appears early increased mitigate cost led increased welding basis points increased in implemented stages This actions adjusted from on X.X% most and the XX.X% inflation. which segments Welding benefits of of recovery. organic basis benefit actions our exception reportable in adjusted our exceeded first XX quarter, be million. quarter to regional a by to reduction grew of spending. X.X% in X, from volumes, pricing America's the decline segment's markets The to energy a the XX.X XX partially margin to moving as discretionary sales offset to expectations was with Now point

segment's to regional the and to favorable industry growth in Organic double year adjusted were Slide and organic International demand on Welding of digit EBIT margin improvement Europe. in points benefits in comparisons the reflecting heavy increase operational the prior increased and primary strong digit growth X% basis percent X, drivers XXX.X% sales volumes to in Moving low higher a segment. Automotive percent on The accelerating single adjusted activity and Asia sales EBIT increased million. X.X% XXX initiatives. $XX.X increased the

channel, XX.X% taken Moving copper. Harris the to to $XX.X million. basis as higher first increased retail volumes, higher volumes recover from EBIT pricing XX.X% silver continued quarter to Group Adjusted HVAC points margin applications, the as such XX.X% actions rising well Products increased the XXX EBIT organic strength increased and adjusted American commodity in the with costs, on in due and Slide XX, primarily to benefit XX.X% sales North from as XX.X% to

capital first supply constraints. the million $XX flow lower generated which to remains intentionally we Moving support elevated operations, chain the to Slide Working seasonally mitigate in and XX, cash from in is quarter. recovery

Moving to quarter and Slide as the in allocation as well the execution, our emphasize in $XX strong first growth capital acquisition solid capital Zeman continued April strength with internal in XX, spending, cash given returns million on X. flows,

$XX approximately shareholders to through returned dividend repurchases our in million also We program. share

growth and Looking ahead, continue shares we and expect XX%, in $XXX in with expectations focused for first debt $XXX we that, to maturities added further revolver of on in call be we to $XX opportunistically. quarter questions. to maintained program would for million recently repurchase excess to capacity. and the and $XX returning to our We million over expanded will turn cash million of With liquidity like to no near-term the ample our million With shareholders. I conversion investing are annual CapEx cash

time, with Instructions] our line a this is conducting at Wertheimer first Melius. we question of will be [Operator from question-and-answer gentlemen, and Ladies the session. And Rob

everybody. good Hey, morning,

- excluding does decrease? LIFO thanks XX gross on up but basis gross throughout the you there seem clarification Do maybe is you that, on the charge. points it's year like were to bit margin more COVID of So margin to for that in pampering line? significant little or leverage XX I'm curious, the just a Thanks. that the going get in It expect

sure clearly. want I heard just to your I question Rob, make

as and to price excluding profile gross be positive cost we of in You mentioned And continue slightly LIFO, LIFO of was you gross our profit, so the talked mentioned negative. progression we've profit.

neutral expect impact price costs the We year. a on throughout

covered I that, sure to all make your Rob. question, I want I I So but covered think of

Yeah.

kind that rebound expect see margin into in Just line any strong growth grow COVID gross disruption you you the organic as the of year? should and to later on

globally are things, some world. drag benefits still to Yeah. its material we're probably mitigated ramp really when about in But to think still don't Rob, the around I'm Look, still some having entirety, these travel is up got COVID. other and with that's beginning and I which the we're business confident because Chris. this associated think that as associated we've I economies

probably is we're drag So by that in there that the don't offset probably is certain drag, today, expense but I'm on not line as be other view a it participating I activities that may material. so

Okay, Chris. Thanks,

from Blair Your next Ryan is the Oppenheimer. with of question line

Good everyone. Thanks. morning,

morning. Good

Good morning Ryan.

could was the into add get get underlying comps I normal the some term, color into a quite seasonality. you early a - compares the to demand over near order on and year-on-year hoping better that second, just how easy second of quarter the sense trying of cadence the frame Obviously, to quarter. first acceleration sense through and

tell recover look, marketplace, there's look, with to quarter great QX and you actions then and we and But was was needed significant. March breadth pattern got the that as this is the And the most acceleration some that you I order put momentum, because are strong, Brian. will to potential context We choppiness were inflationary obviously was of that very that's through it the associated moving I the pricing to in very, many, I those importantly, pattern, saw in the strength. Yeah, have And would a the and you've exiting tell order the the be question, order breadth able patterns. in of probably so Chris. great

across really stabilize actually and positive that particular industry XX% actually seeing any that and You see not we're are exposed segments. year one seeing And that a revenue those saw prior it very of it's on automation business that level happy in we at our momentum, to in region, in said basis. revenues perform breadth our now

exiting performance top be the full think strong what that's was at such us company about year we the So And really improving what momentum gives quarter. confidence upon will line. the the for the

Pacific hear. That's notable been Sticking the last recovering collapse same demand geography. Europe Asia Americas by of solidly few for any great And the quarters. in to with obviously is topic, ahead

change that curious expected to the during shift quarter you're there the Just if quarter? seeing entering second or any dynamic is if

shift No, obviously. no real

from performance international market. frankly, Harris in in seeing exceptional that and business were were business see demand the the our the that see frankly, the you and quite we quite You continued quite driving frankly, improvements European

the we like for improvements quite frankly, So to will momentum, And really that catalyst make in and and the those operations certainly the a performance of of strength those again, of markets. volume, improvement. breadth some the us to that the of that we're looking continuing be

thanks again. Understood,

Stifel. Your next question of line Nathan is Jones from with

Good morning, everyone.

morning. Good

morning. Good

on that tight out things, you some at elevated in is pressure demand of there your about anyway? if you kinds start you which chain? any to Can Wanted protecting a material having all points chains shortages, shortages product inventory, you're if inhibiting companies supply a hearing those in any that are mentioned is of Where where way lot from talk to a seeing the ability supply are supply Gabe bit of lot satisfy areas, your shortages, from that. I and know chain,

would for out with inventory to job teams been of ensure and we've chain good Nathan, be I've an while the the solutions and or three inventory quite pandemic frankly last over in supply our the because we that that managing the shelf additional has just provide to than you of within it's equipment, our that's got of that's turned we're were components, I our XX share that had. some then into have challenges of you to to what certainly their the little XXXX that decision of are about also amazing And interchangeability welding provide our a with decision the are chain supply that thinking being going or issues frankly, difficult historically to did on so now Yeah, days of are more if welding these of Lincoln the frankly, we Quite some systems, some to the bit Electric. that little talked the chips. And of put about four solutions, we our enter say globally doing the we've you flexibility quite a and work, built those into quite to very times business customers some months the frankly, products operating the or of things pieces demands. about, that there. when our reading with a resiliency. that piece That's necessarily power customers able electronics, all meet in we've having have you're challenges

So managing those we're issues.

of think believe you saw customers' to As them and in our managed will qX, I challenges to through believe the those teams we exceptionally we most and well. be challenges exceed those our meet year. we'll rest continuing address of able remain the expectations. But And are

that for in inventory Do quarter? has using there to led to share being first the you inventory over do Or the that three you you share be gain think will opportunities like quarters? able two, to feel next gain you

share I us to like us I'm question. And with And some presented be our We frankly, believe a in say customers. shares you've that within long-term it don't but said in transactionally necessarily we traditionally shift share opportunity. for allow provide I quite solutions that That's probably point we a supplier the customers. we've believe with think market us taken that to the from a that the But actually we thing I towards of position most believe placed not the Electric. those our about important good and at has us the positioning as do that to what's of believe positioning, really willing we've, choice service Well certainly that quarter. can that Lincoln can that

my questions. taking for Thanks

day. good a Have Thanks.

next RW is the Dobre Your line Baird. Mig of of from question

Joe Good Mig morning, everyone. morning. for It's on this Grabowski

morning. Good

morning. Good

Good morning. Hey, good morning.

progressing has start to year? that any wanted market I the disruptions sequentially business the asking see I'm wondering in business So been production if transport off auto you automotive impacted market, end how through and by about of do by the the your end

Yeah.

down. we we growth But frankly, it So in chips. was strength growth some and quite were that we and plants see to areas have marketplace some the of auto challenges the we saw did really around some talking mitigated assembly teams chain in of saw in where quite shut power we're that. the delays some And and some that about had business segment the we with frankly, when we could challenges in strong saw And supply reading shipments element see in strong our at by kind in internally, the that QX. we of the looked electronics that transport, we

I see mitigating I as continued chain really from we in strong of of year. well don't we're through factors. going transport are that continued and marketplace year. did and the chain challenges through a believe as supply momentum be expecting So in believe the supply we've couple the will Obviously, the been we're auto rest in We as the much these the to saw rest electronic momentum group. challenges them But moving eliminated. group growth stay that quarter, of the are expecting managing

for hear. steady follow It relatively the you Good And around to automation. that. question then was Thank Good. my is quarter. in up

the second expecting have prepared but you I was backlogs think are half? if not automation, rebound might specific remarks. automation for still you to deliveries sure that I'm in the record mentioned in

us, we're across expectations saw performance see Yes, business capital and prior basis, are. to we will to a spending the operating you in our record great the revenue the in meet continue I'll equipment automation tell that And your backlog improvement for expecting stabilize, some portfolio but was business, on the accelerate.

the XXXX, confidence moving in to automation in had quarter gives business discussions ability through that on about our our first our great improvement execute that. certainly, as continued me So we've we're

taking for question. thanks okay, my Great,

of is of Dankert from the Research. Longbow question Chris line next Your

you know quarter, the on quarter typically here? guidance I on but second could sales as given bit provide any a just some maybe typical stores level of you comments guys don't seasonality versus comp the those growth

really, associated do Not seasonality mean, I we with that provide it. have some we recognition the

we really we performance. moving the As just on QX to said, of level detail from we're but that the as QX momentum liked QX, provide we don't

I And organic But this any to the volume what assumption looking of there. pricing guide sales the year, for at Yeah. missed much on is comments I've point? portion enough. at new pretty Fair versus try that it.

only can It's Yeah, with being good of on year. a the it. the point is say of with about as at half imagine side, you exacting pricing associated in half But good is side that I'd a that. rule guide to and first be of the hard quarter. volume here on probably thumb be about that That's on would the this that

Got it, thanks so much guys.

you. thank Great,

Your line with is next from Jefferies. Saree of the question Boroditsky

does Hi, I quarter. congratulations change you're M&A you're this just talked sheet? both about update about in an earning rates, then past negative And when you leverage you've seeing market? on cash deployment how to and the on strong know shares, the back the about buy think your balance what thinking in effectively capital increasing

Saree, the thanks for question.

focused be growth, on to right. continue We

how share we just internal So we'll investments, of in looking And as keep pretty look broadly. well acquisitions. at agenda balanced the as continued view acquisition opportunistically shareholders at we returning at look we a cash to at primary repurchases look completed, and our

strategy. of capital So in we're our that allocation focused profile on kind

And want I want a of Again, the just now. that steel some exit evaluating liked in the continue there's fit with quite may determine We already very before pipeline strong solutions the look, portfolio. great strong that American around the in It's a we there lot to that gains, around fragmented to area an that they end structural least is in to acquisition also that, where changes of the And It's be and be the perfect completed certainly players really, that North I'll our the of we've potential solutions. discussions add at be pipeline. to enterprises frankly, execute marketplace space, Electric just right automation some private M&A acquisitions. portfolio. success got of the year, the Saree, into know really to acquisition. in tax I whether those see Europe. Lincoln we our to structure capital that a it's bold might automated like long-term believe shown they critical to we And on that, piece in strategy able capital so a market

of the really and in strong easier as Thanks and that quarter, that. gets in challenging. another drivers posted but then you call HVAC quarter, Harris then retail much can some more gets it second It key comps

So of the those the markets in the you particular see in how year? do back growth half

quite look, we and the in Harris business continues Well, I into the growth. team just excited success that believe we've was to solutions space that to doing there, at and work that can really and had products our we is continue provide marketplace the the and frankly, retail that generate

years a couple to seeing what business an love So here acquisitions able had that in acquisition ago, the we strong that's we're be A into momentum solder great product well. been is bring that we into we to in a there, We'd the us. brought can very gone and for that identify category company US Harris, also. from that industrial it's portfolio some

continue stronger in show year, of the to comps the growth team we improvement to back the we've and got So strategies be realize but half business. execution able the and great in by strategies to driving

performance? more, performed? And that if could just how what squeeze Americas in can And I drove you one exports break out

year-over-year. were Yeah, flat exports Saree,

Great, questions. thanks for taking the

Great. Thank you, Saree.

Instructions] next Dillon question Cumming the with your [Operator Stanley. And line from of is Morgan

Thanks question. guys. for the morning, good Great,

of quarters. the think quarter, because the guess think is what balance just degree you you're the kind would of guess, incremental the of a high year, another guiding the XX% in close margin did I of kind of of should But next kind I keeping range. the to kind Sort the few mind changing the still you're in about way, we kind XX% incrementals highest in I margin of leverage of question ask volume getting that over

question inflation back wanted just temporary there. that's the wage dynamics cost So of a understand to kind better and of coming just

look, would moving margin the I migrate beginning Dillon, Yeah, some to business about that when we're dynamics profile, the our year. the costs - those rest of will always you're But say, I right, the through think of this range ranges high last able And and we end perform the those that seeing business higher now in should XX% when volume on the our be volume to momentum is the our get we've at we as discussion between see said incremental the on we're of business. business. back stronger and into change

believe Certainly some those in perform said relative margins an from all incremental we some upon that as margins, we the make incremental we improved should exceptional should have So margin will business also the better. it. continues along play international to QX mix our we're performance improvements was volume as seeking, we we've that favorability business see to because

than So signal performance result those outstanding the believe for a expected the level business. we'll higher to had relative QX drivers for I really we year, think operating are even at that the us what be wanting certainly to we

exposure Okay, I've year Chris, got that XX% then energy apples point, calling investments is it it this renewable to accounted you apples X% that revenue to and the for wrap comment a entirely very side. an close of saying this renewable XX% fair. to made without at you. up, maybe on last just to and And closer infrastructure to maybe Thank

from portfolio. part wanted of growth the So maybe you what we're of But understand seeing rates of kind broaden definition to kind kind of that it's bit. the a

what it a in so abroad could not infrastructure there dollars with US exposure. potentially We're there the that on Obviously, here industry would down I much the exposure, on provide and disconnect be infrastructure, actually how renewables side to we those to but infrastructure everyone only are trying brought between then to around guidance think discussion discussion in. as marketplace. there's the comes see

to and I at to for relative XX% looking markets then Lincoln Electric. infrastructure renewables we're look when exposed So XX% at that range really

very it, Thank got you. Okay, helpful.

Great. Thanks.

Markets. from Capital Steve your last question KeyBanc And Barger line will the of come of

morning. good Hi,

Good morning, Steve.

achievable peak at margin the my organic model, operating As in I growth is back year, was expect in XX% comes look If way this 'XX? that XXXX. you through

it's target. Steve moving those about at need to point. achievable the volume We I we levels certainly this as of volume. for the think business. to that see but to look at talking that when as I We achievable we're we're us target QX, the need through - at And an see of that be business execute is the year. rest for But obviously, an end

you a as put And against just say let's what mid but know up term, longer for can - kind going cycle put teen incremental, expect we incremental talking strong I don't a with you think forward XX% if about just if high give growth guidance, organic you thinking what growth, a of we're get that single we you digit really high and about to comp? can up mid

was high types of be we'd that XXs. putting Yeah, I had volume believe that in those Steve, we if

those of I see and the would of then growth, ability core XX% leverage. targeting we high on drive that incrementals So that the believe over years, to to that across the portfolio, business improvements volume leverage the start that the we've be made restructuring we think just in when I couple again, type the last

it's affect to But I that's window. obviously when the years the the from hard think And you to term know a near predict Okay. incoming or term expect beyond mix? going trends, because international about cycle stronger do longer Americas you growth

got sure of saying from obviously improvements but really much got it's very I'm we're are We've of a I'm larger our the showing accessories, making operating nice about Steve. this our mean perspective some I at that I like. business. SBUs growth we've that point some areas effectively, Americas business catalysts, a that growth Yeah, in not confident business there's some things in that are

in to markets India look at businesses business, to to tell some be that we've I markets international able those start real I'm the growth in improvement. areas the we like made Europe, our those competently. will outside be able growth and in And you yet, make got improvements very I that, grow that. seeing and we've I to especially real believe when can drive find to So also

see So them or not I'm a one both opportunities. of targeted higher I I've other that as the growth really growth. for sure of ratio

standard last, Are Understood is Can accepted I'm formed? how the And and higher and of the those squeeze being software initiatives? the are in. about they are strategy where solutions since you XX talk Part market? one AI. just I'll commercial efforts you in fully more by for to IoT enhance

it's Electric a term. we'd which work of ways doing continuing other additive time. off Absolutely, the platform very you a because for whether it's it's be been on some And you that IoT things that expect, question technologies. side, that utilizes our long technologies. we've the But at that technologies in over of those customers we've we're welding of it's have the some see I'm be already and that got the already of adopted to a to in glad differentiator even a that building for And, whether that checkpoint or the those providing utilizing that's in designed, users looking invest one processes, period initial technologies quite to automation we're learning whether critical lot longer investing got we've And Lincoln have solutions we're are machine we innovation, the assist advancing solutions, as like and their quite in asked we'd frankly, as our that drive and platform. who, then are we frankly, would utilizing

And this provide the comment differentiator. differentiated every version this But pointed company how versus Are there of has competitors any your that in in on a strategy. your you in marketplace? truly out can it's you I you - know detail other of kind own is their

way And embedded Lincoln are think I you Electric talk marketplace. that over we're thinking I'll Lincoln in as and it, your you equipment what about Electric Steve, to around portfolio. momentum is many the technologies frankly, What of easy arms several where to that's many technologies it winning centric to about equipment? last did those around in in quarters where relates for Well, one seen That's as get cases. today, quite portfolio we the you're the tell have those equipment the you are

and I innovations But a of software products required when exceptionally consumable about those catalyst equipment hosts of a areas those are portfolio. our to innovation. innovative that. other be really specifically, could also and the drive is would our And IoT certainly growing go that talking are that's about HyperFill with technology well. the you're that there on areas, So of on

Thanks for time. the

have do we from And the of in one queue with Saree additional question Boroditsky Jefferies. line

up. seems are since Thanks just structurally to Harris wanted I comment, and for follow the on higher that XXXX. my XX% taking it international margin ask

levels? some when is North right in And can of potentially target Lincoln upside we industrial So infrastructure give maybe the early what prior back get to on margin plus the as from you color investment? piece for could us America recovery, stages are

relative - business. you the Harris the thanks tell comment for Well, international would I Saree, that to and business the

the is our looking structural tell there. some make We've I side looking You're I would we're improvements segment think on right. that business. to largest Americas our still seen And improvements improvements in catalyst we're improvements for international the you automation of operational business. for in further the that the

As like need fact level frankly, those now we we we're business at been and to levels at that believe particular margins QX about that the get continue for that business back fact We that year it's We from slight has for grow drag a we us. prior troughed. up to quite and strategy. were was love we that talked automation it that to as the looking the

And the in and continue then few that over as are Americas success a SBUs the certainly that relates offerings creates a earlier quarters I A believe growth really for biggest strategies the we our the and host forward. mentioned the I us I portion Electric I'll an growth to service So other Americas. for applications to business. IoT have it stages we seeing have within as and in in have see as that it to improvements catalyst enhancement We making relates and what is areas of back more of that mix category. as at Those last other still opportunity drive equipment to areas very and for opportunity lot an that to favorable Lincoln are for margin targeted trying tend in have go equipment us areas. specific targeted to drive growth host those those to it to we're moving we're be of us revenue portfolio. that we're of early the

the on Congratulations again Thanks. quarter.

you. Thank

Bruno turn session. call This remarks. to concludes now our Q&A Gabe over closing I will the any back for

Thank of thank would the look you, We to to discussing I strategic Thank in like Stephanie. you us your the call forward again. in initiatives Lincoln today the interest future. everyone for our on joining progression and continued Electric. for

Thank conclude today's call. you. conference does This

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