Illinois Tool Works Inc. (ITW) has reported first quarter 2018 GAAP earnings of $1.90 per share, a 23 percent increase compared to the year ago period. Revenue was up 8 percent with 3 percent organic growth.

Operating income was $903 million in the quarter, an increase of 12 percent, and operating margin was 24.1 percent, an increase of 90 basis points.

“We are off to a solid start in 2018,” said E. Scott Santi, chairman and CEO. “Despite lower than expected auto builds impacting our Automotive OEM segment, we delivered three percent organic revenue growth which, along with strong execution on our enterprise initiatives and disciplined price/cost management, resulted in operating earnings growth of 12 percent year-on-year for the quarter. As we look ahead at the balance of the year, the combination of ITW’s resilient high-quality business portfolio, positive underlying demand trends and additional benefits from enterprise initiatives have the company well positioned for continued top and bottom line growth. As a result, we are raising our full year EPS guidance by 15 cents at the mid-point.”

ITW said all seven of the company’s business segments delivered positive year-on-year organic growth, led by Welding (+8 percent), Test & Measurement and Electronics (+8 percent) and Construction Products (+3 percent).

ITW is raising its 2018 full-year guidance by 15 cents at the mid-point to a range of $7.60 to $7.80 per share, up from prior guidance of $7.45 to $7.65 per share, reflecting 17 percent EPS growth year on year at the midpoint. The company expects organic growth of three to four percent, operating margin in the range of 25 to 25.5 percent, free cash flow at or above 100 percent of net income and an effective tax rate of approximately 25 percent for the year.

For the second quarter 2018, the company expects earnings to be in the range of $1.90 to $2 per share, up 15 percent at the mid-point, with organic growth of three to four percent.