Lincoln Electric Acquires RealWeld

The Lincoln Electric Company, a subsidiary of Lincoln Electric Holdings Inc., has bought a private company RealWeld Systems. The acquisition of the company will provide Lincoln Electric with RealWeld Trainer solution that provides welding evaluation and training. This will strengthen Lincoln’s existing programs. At present, it is one of the top companies that provide welding education in North America.

Lincoln Electric Holdings has announced that its third quarter adjusted earnings have gone up 9 percent to 94 cents per share from just 86 cents the previous year. This was the result of good growth from North America Welding and Europe Welding divisions. The company’s earnings were above the estimate made by industry observers.

RealWeld will now be part of Lincoln Electric Automation Solutions Group. In third quarter of the fiscal year, the company has improved its automation solutions by acquiring Easom Automation that will give Lincoln Electric the opportunity to venture into heavy fabrication sector. The company also signed a deal with Helical Robotics to allow them the use of joint technologies to create trackless automated welding services. They expect it to be available on the market next year.

Lincoln Electric plans to divest its manufacturing unit in the Asia Pacific region in line with its repositioning plan. The company will benefit from improving the trends of the end market in the structural and fabrication industries. The demand for innovation in the sectors, as well as the benefits from its programs has increased the returns of the company that will drive growth. The downside is that the global mining industry has been weak and raw material prices will be volatile in the coming years.

At present, Lincoln Electrics has a Zacks Rank of 3 or Hold. Some of the better ranked stocks in the industrial products industry include Pioner Power Solutions, AO Smith, and Blount International Inc.

 

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