ESAB Corporation reported its financial results for the third quarter and the nine months ended September 27, 2024, showing a mixed performance amid challenging market conditions. Net sales for Q3 2024 were $673.3 million, a decrease of 3.1% from $681.0 million in Q3 2023. For the nine months, net sales totaled $2.070 billion, down 0.7% from $2.085 billion in the prior year. The decline in revenue was attributed primarily to unfavorable foreign currency fluctuations, which impacted sales by approximately $20.9 million in Q3 and $57.3 million over the nine months.
Despite the drop in sales, ESAB's gross profit for Q3 2024 increased to $253.8 million from $249.7 million in Q3 2023, reflecting a gross profit margin expansion driven by improved pricing and lower material costs. Operating income also rose to $106.0 million, compared to $101.1 million in the same quarter last year. Net income from continuing operations for Q3 2024 was $71.0 million, up from $60.8 million in Q3 2023, while net income for the nine months increased to $219.5 million from $163.8 million.
The company’s strategic initiatives included several acquisitions, notably Linde Industries for approximately $69 million and Sager S.A. for about $18 million, which contributed positively to net sales growth. ESAB also announced an agreement to acquire SUMIG Soluções para Solda e Corte Ltda. for approximately $74 million, expected to close in Q4 2024.
Cash and cash equivalents as of September 27, 2024, stood at $253.7 million, a significant increase from $102.0 million at the end of 2023. The company reported net cash provided by operating activities of $228.5 million for the nine months, compared to $208.1 million in the prior year. ESAB's total assets increased to $4.085 billion from $3.829 billion at the end of 2023, with total equity rising to $1.878 billion.
The effective tax rate for Q3 2024 was 20.3%, a decrease from 24.6% in Q3 2023, contributing to the improved net income. The company continues to focus on enhancing its product offerings and expanding its customer base, positioning itself for long-term growth despite the challenges posed by currency fluctuations and market conditions.
About ESAB Corp
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