What’s going on with ITW?
Illinois Tool Works (ITW) shares were up 0.29% after the company posted strong first quarter financial results. Revenue increased to $3.5 billion, an increase of 10% compared to the period last year, with GAAP earnings per share being $2.11, a 19% increase. Shares of ITW were trading at $231.44 per share on Friday morning.
What does it mean Illinois Tool Works
The company reported robust growth in the first quarter, highlighted with operating income increasing 19% to $905 million, and generating free cash flow of $541 million.
With organic growth in the 10-12% range expected, Illinois Tool Works forecast 2021 GAAP EPS will be in the $8.20-$8.60 range, marking a 27% increase. The company plans to repurchase approximately $1 billion of its shares.
“We saw continued improvement in the demand environment across a broad cross section of our business portfolio in the first quarter and our teams around the world responded,” said E. Scott Santi, chairman and CEO. “The combination of the ‘Win the Recovery’ actions we initiated over the course of the past year, the foundational strength of ITW’s 80/20 front-to-back business system, and our continuing progress in executing our long-term enterprise strategy allowed us to meet our customers’ increasing needs while delivering excellent profitability leverage, as evidenced by our 19 percent earnings growth, 45 percent incremental margins, and 120 basis points of margin benefit from enterprise initiatives in the quarter.”
ITW has a Long-Term Technical Rank of 69. Find out what this means to you and get the rest of the rankings on ITW!
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
