GLENVIEW, Ill. Illinois Tool Works Inc. (ITW) has reported fourth quarter 2012 diluted income per share from continuing operations of $2.10, an increase versus 2011 fourth quarter earnings of 90 cents. Excluding certain discrete items shown in the table below, adjusted EPS of 89 cents per share for the 2012 fourth quarter increased 1 percent compared to an adjusted EPS of 88 cents for the year-ago period.
Total fourth quarter revenues of $4.221 billion declined 2.3 percent largely due to the impact of the Decorative Surfaces divestiture and the negative impact of currency translation. Excluding the impact of divestitures, total revenues would have grown approximately 2 percent. Organic, or base revenues, increased 60 basis points, in line with company expectations.
By region, North American organic revenues grew 1.6 percent and international organic revenues decreased 0.5 percent. European organic revenues decreased 2.6 percent while Asia Pacific organic revenues increased 3.7 percent.
The Transportation segment led the company in organic growth, increasing 4.2 percent in the quarter. Notably, the worldwide automotive OEM business produced organic revenue growth of 10.9 percent, including organic growth of 12.4 percent in North America and 1.8 percent organic growth in Europe. The increase in European organic growth took place even as car builds in that region fell 7 percent in the quarter.
“In 2012, we grew our adjusted earnings per share 10 percent and improved operating margins by 50 basis points,” said E. Scott Santi, president and CEO. “We also invested nearly $100 million in restructuring projects, many of which were related to the execution of our enterprise strategy and related initiatives portfolio management, business structure simplification and strategic sourcing. As we detailed at our investor meeting in New York last month, through our enterprise strategy we are positioning the company to deliver solid growth as well as very strong operating margin and return on invested capital performance over the next five years.”
Looking ahead, the company believes full-year 2013 will be characterized by modest growth for both North American and international geographies. Total company organic revenue growth is expected to be in a range of 1 percent to 3 percent. As part of its enterprise strategy in 2013, the company also expects to spend $120 million to $140 million for restructuring activities. As a result, the company is forecasting full-year diluted income per share from continuing operations to be in a range of $4.13 to $4.37.