Electronic Insight in the welding and gas industry

Inside this issue:• Quarterly Reports• Industry Updates & News• Product Announcements

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August 2018 Edition

Quarterly Reports

Lincoln Electric 2Q HighlightsCLEVELAND (AP) _ Lincoln Electric Holdings Inc. (LECO) reported their second-quarter results:• Sales of $790.1 million, 26.0% increase verses last year.

• 16.0% from acquisitions• 4.4% on higher volumes• 4.9% from price increases• 0.7% from favorable impact from foreign exchange

• 2Q net income = $68.9 million compared to $61.4 million last year.

• Lincoln Electric has completed the transaction to acquire Air Liquide Welding, a subsidiary of Air Liquide for $134 million including certain debt obligations.

Worthington Industries reports 4Q and fiscal year resultsCOLUMBUS, Ohio (AP) _ Worthington Industries Inc. (WOR)• 4Q Net Sales of $1 billion, up from $845.3 million last year• Net Earnings of $30.8 million, down from $56.5 million.

• Net earnings included pre-tax impairment charges totaling $52.9 million

• Pressure Cylinders net sales totaled $340 million, up 47% over last year’s quarter.

• Year end net sales = $3.6 billion and net earnings of $194.8 million. • YE net sales were up 19% or $567.5 million

Quarterly ReportsColfax (ESAB Parent Company) Colfax Corp. (CFX) reported second quarter results:• 2Q Net Sales of $925 million up 9% from last year. • Net Income of $75 million verses $55 million last year.• Fabrication Technology Segment sales grew 8.2% and Air & Gas Handling

sales decreased 13.1%. • Colfax signed an agreement to acquire Gas Control Equipment (GCE), a

European leader in industrial gas flow equipment.Nucor CHARLOTTE, N.C. (AP) _ Nucor Corp. (NUE) reported second quarter results. • 2Q Net Sales increased 25% to $6.5 billion from $5.17 billion last year.

• Total tons shipped were 7.2 million, a 7% increase compared to last year.

• 2Q Net Earnings totaled $683.2 million compared to $323 million last year.

• Nucor have increased their workforce by 18% and invested $8 billion since the last cyclical peak in 2008.

• Nucor announced plans to build a galvanizing line at the company’s sheet mill in Arkansas to support growth into a wider and more diverse set of strategic end-market applications.

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Quarterly ReportsKimberly-Clark Second Quarter results:Kimberly-Clark Corp. (KMB) reported second quarter net sales of $4.6 billion – a 1% increase compared to last year. • Net Income was $455 million compared to $531 million last year. • K-C Professional Segment (includes Jackson Products) sales were

$900 million, an increase of 3% over last year.

Illinois Tool Works (Miller Electric Parent Company) Reports 2nd Quarter Results• 2Q Total revenue of $3.8 billion, an increase of 7% • 4Q quarter net income was $666 million compared to $587 million

last year• The Welding Segment (Miller Electric) posted total revenue of $440

million with a operating margin of 29.3%. • The Welding Segment Organic Revenue Growth was 13.3%

Essendant Reports Second Quarter 2018 Results:2Q Net Sales declined 0.5% to $1.3 billion.JanSan Products: revenues of $346.3 million, a decrease of $3.4 million.Technology Products: revenues of $298.8 million, a decrease of $10.9 million.Traditional Office Products: revenues of $176.6 million, a decrease of $10.1 million.Industrial Products: revenues of $163 million, an increase of $16.9 million.Cut-sheet Paper Products: revenues of $116 million, an increase of $6.4 million or 3.3%. Automotive Products: revenues of $85.4 million, an increase of $3.2 million or 12.1%. Office Furniture: revenues of $63 million, a decrease of $6.9 million.Gross Profit was $173.2 million, a decline of $4.4 million verses the prior year due to increased freight costs and lower product margin.

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Quarterly ReportsAir Products Reports Fiscal 2018 Third Quarter ResultsLEHIGH VALLEY, Pa. (Oct 26, 2017) – Air Products (NYSE: APD) • 3Q sales of $2.3 billion, an increase of 6% from the prior year

• 3% due to higher volumes, 1% due to higher pricing and 2% due to favorable currency.

• Adjusted Net income from operations was $431 million, up 19% from last year.

• Industrial Gases – Americas sales of $949 million increased 2% . 6% from higher volumes partially offset by 4% lower energy costs pass-through.

• AP brought $350 million steam methane reformer onstream, supplying Covestro (Baytown, Texas) other customers linked to Air Products’ Gulf Coast hydrogen and CO pipeline networks.

Trimas Corp. (Norris Cylinder Parent Company) Reports Second Quarter results: • 2Q Net Sales of $224.9 million and increase of 5.4%. • Operating profit was $31.5 million compared to $26.4 million last

year. • Specialty Products Segment (Norris Cylinder and several other

companies) 2Q total sales were $84.2 million compared to last year sales at $77 million. A 9.3% increase.

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Quarterly ReportsChart Industries Reports Second Quarter Results:• Total 2nd quarter sales of $319.9 million, up 34% for the same period

last year• 2Q Net Income was $12.8 million compared to $2.8 million last year. • Orders of $360.3 million, a 12% increase over the first quarter of

2018 and 43% over 2Q 2017.

Praxair Reports Second Quarter Results:• 2Q Net Sales of $3.1 billion: an increase of 8%.• 2Q Net Income was $501 million, up 18% from last year. • 2Q adjusted operating profit was $689 million, up 14% from last year• North America 2Q sales were $1,594 million, up 6% from last year.

Industry Updates & NewsAirgas Acquires Weiler Welding Company, Inc., Marking the 500th

Acquisition in Company History. Effective April 30, 2018 Airgas acquired the assets and operations of Weiler Welding Company, Inc. Weiler Welding Co. is a full service industrial gas, beverage gas and welding supply business headquartered in Moraine, Ohio. Weiler services Southwestern Ohio and Southwester Indiana through six locations. Air Products Completes Acquisition of Shell’s Coal Gasification Technology/Patents, and Forms Strategic Alliance with Shell for Liquids (Residue) Gasification for Refineries Air Products has successfully completed the acquisition of the Coal Gasification Technology licensing business from Shell Global Solutions International B.V., a subsidiary of Royal Dutch Shell plc, and formed a strategic alliance with Shell for residue gasification technology to refinery complexes. The acquisition includes Shell’s associated patent portfolios for solids (coal and biomass) gasification and sharing of patent rights for residue and biomass gasification.

These moves extend Air Products’ offerings in synthesis gas (syngas) to provide turn-key sale-of-gas gasification facilities for solids (coal and biomass) and liquids (refinery residues). In its sale-of-gas business model, Air Products finances, builds, owns, operates and maintains the gas production plant, enabling customers to focus attention and capital on their primary business.

“Air Products now has immediate access to Shell’s proven technology and a successful business, with that technology already in place at nearly 200 gasification systems delivering syngas around the world,” said Air Products’ Chairman, President and Chief Executive Officer, Seifi Ghasemi. “Beyond a strong operating base, we now have a robust technological foundation that builds on our core focus supplying the full range of industrial gases to our customers.”

Gasification technologies offer a way to take varied lower-value feedstocks and convert them in a lower-emission manner into syngas. Air Products can then provide this syngas to customers to make higher-value products. Shell has been at the forefront of gasification research and innovation over the past 50 years, with reports showing 170 Shell gasification process (SGP) and 34 coal gasifiers built, and currently, 96 SGP and 24 Shell coal gasification process gasifiers in operation worldwide.

Industry Updates & NewsEsyte Company Continues to Grow! Esyte Company sales are increasing monthly through new customers, repeat customers, new products and services.

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Industry Updates & NewsPraxair - Linde – Messer Group – CVC Capital Update:

Linde AG said it has entered into an agreement to sell the majority of its gases business in North America and certain business activities in South America to a consortium comprising of German industrial gases manufacturer Messer Group and CVC Capital Partners Fund VII. The purchase price of $3.3 billion will be subject to customary adjustments at closing. The business to be sold generated annual sales of about $1.7 billion and an EBITDA of just over $360 million in 2017. It includes substantially all of Linde’s U.S. bulk business and its businesses in Brazil, Canada and Columbia. The sale is still subject to the completion of the proposed business combination of Linde and Praxair Inc. as well as regulatory approvals. Linde noted that the receipt of regulatory approvals outstanding in other jurisdictions for the proposed business combination may require that the merger partners divest certain further businesses. Linde and Praxair are in talks with the remaining authorities with the objective ofcompleting their business combination in 2018.

Praxair - Linde :U.S. Antitrust Demands Threaten Deal!

(8/5/2018) Linde AG and Praxair Inc. are facing the prospect that their planned $47 billion merger could collapse for a second time after U.S. antitrust authorities made demands that could prove too painful to make the deal worthwhile. The Federal Trade Commission indicated it wants the industrial gases companies to sell more assets before their combination can be approved, leading to a “higher probability” that disposals will exceed a self-imposed limit, Linde said in a statement.Linda and Praxair have been working toward a tie up for at least two years that would create the world’s biggest supplier of industrial gases to rival #1 Air Liquide SA of France. With the Oct. 24 deadline looming, time is running out to close antitrustrelated asset sales they have already announced and to find a way to make the deal work.

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New Product Announcements! MG-11 - Welding Fillet Gauge

HG-005 – Cam Bridge Gauge• All stainless steel construction • Depth of undercut measurement• Excess weld metal (capping size) measurement• Fillet leg length measurement• Fillet welded throat size measurement• Angle of preparation (0° to 60°) measurement• Misalignment (high to low) measurement• Measurements in inches and mm.• All numerals are etched for clarity, easier reading

and years of use. • Black carry bag included

• 7 piece set all stainless steel • Concave weld measurements (fillet throat size)• Convex weld measurements (fillet leg size)• Measurements in inches and mm.• 1/8” to 1”• 3.2mm to 25.4mm• All numerals are etched for clarity, easier reading

and years of use. • Black carry bag included

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Industry Updates & NewsTech Air Announces Acquisitions of Speed Industrial Supply, Leeper Brothers and Colorado Distributing:

Tech Air, A Connecticut-based distributor of industrial, medical, and specialty gases and related equipment and supplies announced that it has acquired Speed Industrial Supply of Kemah, Texas. Speed is a distributor of industrial and welding supplies serving the Galveston Bay area near Houston, Texas. In February, Tech Air acquired Leeper Brothers, a distributor of medical gases located in North Hollywood, California. In April, Tech Air acquired Colorado Distributing of Denver, Colorado. Colorado Distributing is a hardgoods business with primarily power and utilities customers.

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Electronic Insight in the welding and gas industry

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