ITW Reports 11 Percent Increase in Third Quarter Revenues - aftermarketNews

ITW Reports 11 Percent Increase in Third Quarter Revenues

Third quarter revenues were up 11 percent for ITW.

GLENVIEW, Ill. — Illinois Tool Works Inc. (ITW) has reported diluted income per share from continuing operations of 85 cents, an increase of 1 percent in the 2008 third quarter versus the prior year period. The company’s revenues increased 11 percent as a result of acquisition and currency translation contributions.

The double-digit operating revenue increase in the third quarter consisted of a 6.9 percent contribution from acquisitions and a 4.7 percent contribution from currency translation. Base revenues declined 0.8 percent in the quarter due to lower North American and international sales volumes partially offset by higher raw material price recovery. North American base revenues declined 2.1 percent and international base revenues increased a modest 1.2 percent in the quarter. For the 2008 third quarter, revenues were $4.148 billion versus $3.744 billion for the prior year period. While operating income was down 1.6 percent from the year-ago period, income from continuing operations decreased 4.5 percent due to higher non-operating costs.

The 2008 third quarter income statement reflects the recently announced reclassification of results for discontinued operations in which the operating results for the Decorative Surfaces segment and the Click Commerce business were reclassified to discontinued operations for reporting purposes.

For continuing operations, total company operating margins of 15.4 percent in the quarter were 190 basis points lower than the prior year period primarily due to lower base revenue margins and the dilutive impact of acquisitions. In the quarter, base revenue margins declined 130 basis points mainly due to volume decreases and the lower margins associated with raw material pricing increases. Acquisitions contributed 70 basis points of dilution in the quarter.

"While our financial results in the third quarter were clearly impacted by slowing end markets, our decentralized businesses continue to assess local market conditions and implement aggressive cost-cutting initiatives where appropriate," said David Speer, chairman and chief executive officer. "We also continue to utilize our strong free operating cash flow — $599 million for the quarter and $1.4 billion year-to-date — to fund acquisitions and buy back shares. In the third quarter, we acquired 14 companies representing $847 million of annualized revenues. Through Sept. 30, we have acquired 40 companies representing $1.4 billion of annualized revenues. Also, in the quarter we paid $406 million to repurchase 8.5 million shares. Through Sept. 30, we have spent $1 billion to buy back 20.2 million shares."

Looking ahead, the company is forecasting the fourth quarter 2008 diluted income per share from continuing operations to be in a range of 74 cents to 82 cents. The 2008 fourth quarter forecast assumes a total company growth range of 6 percent to 9 percent. For the full year, the company is forecasting diluted income per share from continuing operations to be in a range of $3.24 to $3.32. The full-year forecast assumes a total company revenue growth range of 10 percent to 11 percent. If the company meets the midpoints of both forecasts, diluted income per share from continuing operations would decrease 5 percent in the fourth quarter and would increase 6 percent for full-year 2008. Additionally, the company is revising its full-year forecast for acquired revenues and the share buyback program. The company now expects full-year acquired revenues on an annualized basis to be in a range of $1.5 to $1.6 billion. It also expects share repurchases for the full-year to be in a range of $1 billion to $1.2 billion.


You May Also Like

Rotary’s New XA12 Alignment Scissor Lift

Shops can offer alignment services with bay space to spare, and techs can perform alignments on a wider range of vehicles.

Rotary, part of Vehicle Service Group (VSG) and Dover, today announced the addition of the new XA12 Alignment Scissor Lift to its extensive line of automotive lifts for independent shop owners, dealership service departments and car enthusiasts.

The XA12 serves as the ideal small bay alignment lift solution with the largest 4-wheel alignment wheelbase range available in its class. With a 78- to 164-inch 4-wheel alignment wheelbase range and 12,000-pound lifting capacity, the XA12 is designed with space and flexibility in mind. Shops can offer alignment services with bay space to spare, and technicians can perform alignments on a wider range of vehicles.

GRI Receives US DOT Certification For Safety

GRI tires will now incorporate the DOT code emboss on its side walls.

Mevotech Adds 2,300+ New Original Grade Part Numbers

Highlights from the new Original Grade release include control arms and ball joints.

TCCI Manufacturing Unveils High-Voltage Electric Compressor

The 850V compressor, unveiled at MACS 2023, is available in 34cc/46cc/60cc/120cc.

BBB Industries Releases 28 Remy New Part Numbers 

The new part numbers cover more than 9.3 million vehicles.

Other Posts

Dayco Launches Electrically Controlled Water Pump Line

The new technology addresses a higher-than-normal failure rate with the OE pumps.

Engine Pro Honors S.A. Gear with Performance Award

S.A. Gear was recognized with a Fulfillment and Accuracy Award during Engine Pro’s annual supplier meeting.

Driven Brands Rings Nasdaq Closing Bell

CEO Jonathan Fitzpatrick rang the Nasdaq closing bell on Jan. 13, in honor of the company’s 2-year listing anniversary.

Nokian Tyres Invests $174M To Double Dayton Factory Production

Nokian’s Dayton factory expansion includes a 600,000-tire warehouse.