Lincoln Electric 11K Annual report of employee stock purchases

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK REPURCHASE SAVINGS AND
SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934


(Mark One)

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the fiscal year ended December 31, 2006

		OR

		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-1402

A.		Full title of the plan and the address of the plan, if different from that of the issuer named below:

		The Lincoln Electric Company Employee Savings Plan

B.		Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

		Lincoln Electric Holdings, Inc. 22801 St. Clair Avenue Cleveland, Ohio 44117-1199

Financial Statements and Schedule

The Lincoln Electric Company Employee Savings Plan
December 31, 2006 and 2005

Plan Sponsor and Administrator

The Lincoln Electric Company
Cleveland, Ohio 44117
(216) 481-8100

Employer Identification Number: 34-0359955

Report of Independent Registered Public Accounting Firm

Plan Administrator
The Lincoln Electric Company
Employee Savings Plan

We have audited the accompanying statements of net assets available for benefits of The Lincoln Electric Company Employee Savings Plan as of December 31, 2006 and 2005, and the related statement of changes in net assets available for benefits for the year ended December 31, 2006. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2006 and 2005, and the changes in its net assets available for benefits for the year ended December 31, 2006, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2006, is presented for the purpose of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

Cleveland, Ohio
June 22, 2007

The Lincoln Electric Company
Employee Savings Plan

Statements of Net Assets Available for Benefits


	December 31,
	2006		2005

Assets
Cash (non-interest bearing)	$	82,120	$	7,132
Investments, at fair value		228,832,406		184,353,060

Receivables:
Participant contributions receivable		340,769		126,151
Employer contributions receivable		390,314		483,090
Investment income receivable		249,147		226,930
Other receivables		—		279,142

Total receivables		980,230		1,115,313

Total assets		229,894,756		185,475,505

Liabilities
Other payables		239,243		549,464

Net assets available for benefits	$	229,655,513	$	184,926,041

See notes to these financial statements.

The Lincoln Electric Company
Employee Savings Plan

Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2006


Additions
Interest and dividends	$	9,517,531
Contributions:
Participants		11,847,874
Employer		5,330,580
Net appreciation in fair value of investments		30,873,371

Total additions		57,569,356

Deductions
Benefits paid directly to participants		12,839,884


Net increase		44,729,472

Net assets available for benefits at beginning of year		184,926,041

Net assets available for benefits at end of year	$	229,655,513

See notes to these financial statements.

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements

December 31, 2006

1. Description of Plan

The following description of The Lincoln Electric Company Employee Savings Plan (as amended, the Plan) provides only general information. Participants should refer to the Summary Plan Description for a more complete description of the Plan’s provisions.

General

The Plan is a defined contribution plan covering certain employees of The Lincoln Electric Company and certain related entities (the Company), as defined by the Plan. The Plan provides that employees will be eligible for participation in the Plan following six months of full time employment or 1,000 hours in any year of service with the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

Contributions and Vesting

Participant Contributions

Each year, participants may make pre-tax contributions to the Plan of 1% or more (in whole percentages) of their regular and/or bonus pay up to the maximum amount as set by the Internal Revenue Service ($15,000 for 2006 and $14,000 for 2005). Participants are immediately vested in their contributions plus actual earnings thereon. Participants have the right to direct Fidelity Management Trust Company (the Trustee) to invest contributions in any one fund or in a combination of funds in 1% increments.

Company Match

The Company contributes 35% of the first 6% of compensation contributed by certain participants to the Plan. Matching contributions are made monthly and are 100% vested after an employee has attained three years of service. The Company match is discretionary and can be suspended or terminated at any time. The amount of the Company match was $2,552,057 and $2,255,138 for 2006 and 2005, respectively. Company match contributions are invested in the same manner as participant contributions.

FSP Program

The Plan provides a Financial Security Program (FSP) feature to certain eligible participants who made an irrevocable election to participate in the program and to all eligible participants who were hired on or after November 1, 1997. Participants in the FSP program receive a Company contribution to the Plan of 2% of their base pay, in which they become 100% vested after attaining three years of service. In 2006, the board of directors of Lincoln Electric

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements (continued)

Holdings, Inc. authorized the Company to amend the Plan to offer employees enhanced FSP benefits (FSP Plus). This amendment was adopted in July 2006. Eligible employees hired on or after January 1, 2006 will receive FSP Plus benefits under the Plan, but will not be eligible to participate in the Company’s defined benefit plan. Those eligible employees hired prior to January 1, 2006 either remained under the Company’s existing retirement programs, which includes both benefits under the Plan and the Company’s defined benefit plan, or made an irrevocable election to switch to the new program that provides the FSP Plus feature while earning a reduced benefit from the Company’s defined benefit plan. The Company began making contributions to the FSP Plus program to eligible employees after July 16, 2006 as follows:


	FSP Plus Company
Years of	Contribution
Service	(% of base pay)
1		4	%
5		5	%
10		6	%
15		7	%
20		8	%
25		10	%

The amount of FSP contributions were $1,500,716 and $1,723,408 in 2006 and 2005, respectively. The amount of FSP Plus contributions were $1,277,807 in 2006. There were no FSP Plus contributions in 2005. FSP and FSP Plus contributions are invested in the same manner as participant contributions.

Participant Accounts

Each participant’s account is credited with the participant’s contributions and allocations of (a) the Company’s contributions and (b) Plan earnings. Allocations are based on participant earnings or account balances, as defined. Forfeited balances of terminated participants’ nonvested accounts are used to reduce future Company contributions to the Plan. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Participant Loans

Active participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance, excluding FSP and FSP Plus contributions. Loan terms range from one to five years, or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant’s account and bear interest at a rate computed as the prime rate in effect at the loan origination date plus 1%, as determined by the Company. Principal and interest is paid ratably through payroll deductions.

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements (continued)

Payment of Benefits

Participants may receive the value of their account in a single lump sum payment or in ten or fewer annual installment payments following separation from the Company, whether by retirement, disability or otherwise, except that if the full value of a participant’s account is $1,000 or less, or if the participant dies and his/her account is payable to his/her beneficiary, such account balance will be paid in a single lump sum payment. Participants who leave the Company may withdraw their money at any time. Withdrawal must begin no later than April 1 of the calendar year following the calendar year in which age 70-1/2 is attained or the calendar year in which the participant is terminated. A participant or beneficiary may elect to receive the portion of their distribution which is attributable to their interest in the Company Common Stock Fund in the form of whole shares with any fractional shares paid in cash or all in cash.

Plan Termination

The Company has the right to amend, modify, suspend or terminate the Plan subject to the provisions of ERISA at any time. Upon termination of the Plan, the rights to benefits accrued by participants or their beneficiaries, to the extent that such benefits are funded or credited to participants’ accounts, shall be nonforfeitable. No amendment, modification, suspension or termination of the Plan shall have the effect of providing that any amounts then held under the Plan may be used or diverted to any purpose other than for the exclusive benefit of the participants or their beneficiaries.

2. Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are prepared under the accrual method of accounting in accordance with U.S. generally accepted accounting principles.

Investment Valuation and Income Recognition

The Plan’s investments are stated at fair value which, equals the quoted market price on the last business day of the plan year. The units of registered investment companies are valued at quoted market prices, which represent the net asset values of units held by the Plan at year-end. The Common Shares of the Company are valued at the last reported sales price on the last business day of the plan year. The participant loans are valued at their balances outstanding, which approximate fair value.

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements (continued)

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Administrative Expenses

All costs and expenses incurred in connection with the administration of the Plan and trust were paid by the Company in 2006 and 2005.

3. Investments

During 2006, the Plan’s investments (including investments purchased, sold, as well as, held during the year) appreciated in fair value as determined by quoted market prices as follows:


	Net Realized
	and Unrealized
	Appreciation
	in Fair Value
	of Investments
Units of registered investment companies	$	7,414,153
Lincoln Electric Holdings, Inc. Common Shares		23,459,218

	$	30,873,371

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements (continued)

Investments that represent 5% or more of the fair value of the Plan’s net assets available for benefits at either December 31, 2006 and 2005 are as follows:


	2006			2005

Lincoln Electric Holdings, Inc. Common Shares	$	64,752,356		$	45,775,493
Dodge & Cox Balanced Fund		23,587,541			18,094,148
Fidelity Diversified International Fund		23,095,064			16,129,636
Fidelity Managed Income Portfolio		21,753,573			19,514,131
Fidelity Blue Chip Growth Fund		18,355,699			18,424,511
Spartan US Equity Index Fund		15,451,667			13,523,837
Artisan Mid Cap Fund		10,767,551	*		10,826,302
Neuberger Berman Genesis Trust Fund		10,296,417	*		11,911,215

* Below 5% threshold.

4. Income Tax Status

The Plan received a determination letter from the Internal Revenue Service dated October 1, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax exempt.

5. Transactions with Parties-in-Interest

Party-in-interest transactions include the investment in the proprietary funds of the Trustee and the payment of administrative expenses by the Company. Such transactions are exempt from being prohibited transactions.

At December 31, 2006, the Plan held 1,071,704 Common Shares of Lincoln Electric Holdings, Inc., the Plan Sponsor, with a market value of $64,752,356. For the year ended December 31, 2006, the Plan received dividends on Lincoln Electric Holdings, Inc. Common Shares of $858,590. At December 31, 2005, the Plan held 1,154,198 Common Shares of Lincoln Electric Holdings, Inc., the Plan Sponsor, with a market value of $45,775,493.

The Lincoln Electric Company Employee Savings Plan

Notes to Financial Statements (continued)

6. Difference between Financial Statements and Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:


	December 31,
	2006			2005
Net assets available for benefits per financial statements	$	229,655,513		$	184,926,041
Less: Deemed distribution of loans with no post-default payments		(58,786	)		(44,136	)

Net assets available for benefits per Form 5500	$	229,596,727		$	184,881,905

The deemed distributions of participant loans with no post-default payments are loans that are in default by participants of the Plan. While the U.S. Department of Labor does not recognize these loans as assets for regulatory reporting, they are included as assets (i.e., loans) in the financial statements of the Plan as these loans are collateralized by participant funds.

7. Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

The Plan’s investments in the Company’s stock are exposed to market risk in the event of a significant decline in the value of Lincoln Electric Holdings, Inc. Common Shares. Participants assume all risk in connection with any decrease in the market price of any investment.

The Lincoln Electric Company
Employee Savings Plan

EIN: 34-0359955 Plan Number: 005
Form 5500, Schedule H, Line 4i—Schedule of Assets
(Held at End of Year)
December 31, 2006


		Description of
		Investment
		Including Maturity
		Date, Rate of
		Interest, Collateral,
Identity of Issue, Borrower,		Par or	Current
Lessor, or Similar Party		Maturity Value	Value

Cash, interest bearing			$	3,041,906

Common/Collective Trust:
Fidelity Managed Income Portfolio*		21,753,573 units		21,753,573

Units of registered investment companies:
Dodge & Cox Balanced Fund		270,872 units		23,587,541
Fidelity Diversified International Fund*		625,036 units		23,095,064
Fidelity Blue Chip Growth Fund*		414,256 units		18,355,699
Spartan US Equity Index Fund		307,925 units		15,451,667
Artisan Mid Cap Fund		353,498 units		10,767,551
American EuroPacific Growth Fund		227,236 units		10,580,099
Neuberger Berman Genesis Trust Fund		215,722 units		10,296,417
Janus Mid Cap Value Fund		334,741 units		7,970,187
American Washington Mutual Fund		191,318 units		6,669,333
PIMCO Total Return Inst Fund		555,710 units		5,768,271
Northern Select Equity Fund		14,722 units		307,402

				132,849,231

Common stock:
Lincoln Electric Holdings, Inc*	1,071,704 Common Shares			64,752,356
	Loans maturing at various
	dates through June 10, 2021
	and bearing interest at rates
Participant loans*	ranging from 4.25% to 10.5%			6,376,554

			$	228,773,620

*Indicates party-in-interest to the Plan.

Exhibits


Exhibit No.		Description
23		Consent of Independent Registered Public Accounting Firm

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.



				The Lincoln Electric Company Employee Savings Plan

		By:		The Lincoln Electric Company, Plan Administrator

		By:		/S/ Vincent K. Petrella

				Vincent K. Petrella, Senior Vice President, Chief Financial Officer and Treasurer Date: June 22, 2007

Lincoln Electric (LECO) 11-KAnnual report of employee stock purchases