Illinois Tool Works Inc. Reports Highest Quarterly Income Total In Company History

IIlinois Tool Works Inc. (ITW), a manufacturer and seller of industrial products and equipment worldwide founded in 1912 and based in Glenview, Illinois posted a favorable Q2 fiscal report this morning as follows:

Earnings/Share: UP 16% to $1.69 compared to the same period a year ago which included an EPS benefit of $0.03 per share related to a legal settlement. Excluding this item, second quarter earnings were $1.66 per share, an increase of 14% versus the prior year.

Revenue: UP 4.9% to $3.6 billion. Organic revenue increased 2.6% while the 2016 acquisition of Engineered Fasteners & Components
(EF&C) added 3.5% to revenue.

Net income: $587 million.

Operating income: UP 10% to $874 million and was the highest quarterly income total in the company’s history.

Operating margin: UP 120 basis points to 24.3%. Excluding the margin impact from EF&C, operating margin was 24.9%

After-tax return on invested capital: UP 190 basis points to was 24.8%.

E. Scott Santi, Chairman, and Chief Executive Officer, said in the company’s press release that:

“Our second quarter performance reflects continued progress in our focus on leveraging ITW’s differentiated business model and diversified high-quality business portfolio to full potential.

I once again thank the entire ITW team for the great job that they continue to do in serving our customers and executing our strategy
with excellence. Due to their efforts, ITW is well-positioned to continue to deliver differentiated performance through the balance of 2017 and beyond.”

Full-Year and Third Quarter 2017 Guidance