CHICAGO (Reuters) - Welding equipment maker Lincoln Electric Holdings Inc (LECO.O: Quote, Profile, Research, Stock Buzz) may make a number of acquisitions this year, with a likely focus on emerging markets, the company's CEO said on Monday.
"We would be optimistic about adding acquisitions this year," Chief Executive John Stropki said at the Reuters Manufacturing Summit in Chicago.
Stropki said he was also mildly optimistic that the U.S. economy will not slide into recession this year.
He said Lincoln is looking at a "queue of potential acquisitions" in Eastern Europe, Russia and throughout Asia, in particular in China and India. The company's has begun construction on its first plant in India.
"We are building right now in Chennai, I would speculate that we would acquire multiple plants in India," he said, adding that it would be very challenging to supply broad areas of India from Chennai.
Cleveland-based Lincoln Electric has around $200 million in cash and a credit line of $150 million, but could borrow up to $1 billion without overburdening the company with debt, Stropki said.
The company's debt-to-equity ratio is currently in the high single digits, he added.
Stropki said he expects the oil and natural gas industries will be a significant growth area for Lincoln Electric, in particular in Russia. As order books at shipbuilding yards around the world are full through 2010, demand there should also remain strong, he added.
Stropki said that in the United States the company's automotive and construction businesses are "not doing so well" but make up a relatively small share of Lincoln Electric's overall sales. Continued...
© Thomson Reuters 2008. All rights reserved.
| Japan Investment | Jul 01 - 2, 2008 | Country Summits |
| Global Real Estate | Jun 23 - 25, 2008 | Real Estate |
| Consumer and Retail | Jun 16 - 18, 2008 | Consumer Retail |
| Investment Outlook | Jun 09 - 12, 2008 | Financial Services / Exchanges |
| Global Energy | Jun 01 - 5, 2008 | Energy |
