Illinois Tool Works Inc. (ITW) is poised to gain from strength in the Automotive OEM (Original Equipment Manufacturer) segment, stable underlying demand and improving supply chains despite softness in the semiconductor end market and foreign currency woes.What’s Aiding ITW?Business Strength: Illinois Tool is benefiting from stable underlying demand and improving supply chains. Strong momentum in the EV markets, customer mix and product line simplification activities are boosting revenues in the Automotive O ...

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GLENVIEW, Ill., May 03, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE:ITW) declared a dividend on the company's common stock of $1.40 per share for the 2nd quarter of 2024. The dividend equates to $5.60 per share on a full-year basis. The dividend will be paid on July 11, 2024 to shareholders of record as of June 28, 2024. About Illinois Tool WorksITW (NYSE:ITW) is a Fortune 200 global multi-industry manufacturing leader with revenue of $16.1 billion in 2023. The company' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 1-4797 ILLINOIS TOOL WORKS INC. (Exact name of registrant as specified in its charter) | Delaware | ...

Illinois Tool Works Inc. (ITW) reported first-quarter 2024 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.35. Earnings increased 5% year over year.Illinois Tool’s revenues of $3.97 billion missed the consensus estimate of $4.02 billion. The top line inched down 1.1% year over year due to an unfavorable foreign currency translation of 0.4%. Also, organic sales decreased 0.5% and divestitures reduced revenues by 0.6%.Segmental PerformanceTest & Measurement and Electro ...

Illinois Tool Works Inc. (NYSE:ITW) Q1 2024 Earnings Conference Call April 30, 2024 10:00 AM ET Company Participants Erin Linnihan - VP, IR Karen Fletcher - VP, IR Christopher O'Herlihy - President and CEO Michael Larsen - SVP and CFO Conference Call Participants Jamie Cook - Truist Securities Tami Zakaria - JPMorgan Steve Volkmann - Jefferies Andy Kaplowitz - Citigroup Sabrina Abrams - Bank of America Mig Dobre - Baird Matthew Pan - Barclays Operator Good morning. My name is Krista, and I will be your conf ...

Illinois Tool Works (ITW) reported $3.97 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.1%. EPS of $2.44 for the same period compares to $2.33 a year ago.The reported revenue represents a surprise of -1.18% over the Zacks Consensus Estimate of $4.02 billion. With the consensus EPS estimate being $2.35, the EPS surprise was +3.83%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

[Performance Overview and Outlook](index=1&type=section&id=Performance%20Overview%20and%20Outlook) ITW delivered solid Q1 2024 performance with operating income and adjusted EPS growth, margin expansion, and raised full-year guidance [First Quarter 2024 Results](index=1&type=section&id=First%20Quarter%202024%20Results) ITW's Q1 revenue declined slightly, but adjusted operating income and EPS grew, with operating margin expanding 120 basis points to 25.4% Q1 2024 Financial Highlights (vs. Q1 2023) | Metric | Q1 2024 Value | Change (YoY) | Note | | :--- | :--- | :--- | :--- | | **Revenue** | $4.0 billion | -1.0% | Organic growth declined (0.6)% | | **GAAP Operating Income** | $1.13 billion | +16% | Includes $117 million one-time benefit | | **Adjusted Operating Income** | $1.01 billion | +4% | Excludes one-time item | | **GAAP Operating Margin** | 28.4% | +420 bps | - | | **Adjusted Operating Margin** | 25.4% | +120 bps | Enterprise initiatives contributed 140 bps | | **GAAP EPS** | $2.73 | +17% | Includes $0.29 one-time benefit | | **Adjusted EPS** | $2.44 | +5% | Excludes one-time item | - Free cash flow was **$494 million**, with a conversion of **68%** to net income when excluding the one-time accounting item[5](index=5&type=chunk) - The company repurchased **$375 million** of its own shares during the first quarter[5](index=5&type=chunk) [One-Time LIFO Inventory Accounting Change](index=1&type=section&id=One-Time%20LIFO%20Inventory%20Accounting%20Change) ITW changed inventory accounting from LIFO to FIFO for certain U.S. businesses, resulting in a **$117 million** pre-tax benefit and impacting 23% of inventories - The company changed its inventory accounting method from LIFO to FIFO for certain U.S. businesses[6](index=6&type=chunk) - This change impacted approximately **23%** of total inventories as of December 31, 2023[6](index=6&type=chunk) - The accounting change resulted in a pre-tax cumulative benefit of **$117 million**, recorded as a reduction in cost of revenue[6](index=6&type=chunk) [2024 Guidance](index=1&type=section&id=2024%20Guidance) ITW raised full-year 2024 GAAP EPS guidance, projecting 2-4% total revenue growth, 1-3% organic growth, 26-27% operating margin, and **$1.5 billion** in share repurchases Full-Year 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **GAAP EPS** | $10.30 to $10.70 | | **Operating Margin** | 26% to 27% | | **Revenue Growth** | 2% to 4% | | **Organic Growth** | 1% to 3% | | **Share Repurchases** | ~$1.5 billion | | **Effective Tax Rate** | 24% to 24.5% | - Enterprise initiatives are expected to contribute more than **100 basis points** to the full-year operating margin[7](index=7&type=chunk) - Free cash flow is projected to exceed **100%** of net income for the full year[7](index=7&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) Unaudited Q1 2024 financial statements show higher net income from lower cost of revenue, stable total assets, and slight increases in inventories and short-term debt [Statement of Income](index=3&type=section&id=Statement%20of%20Income) Q1 2024 operating revenue slightly decreased, but operating income and net income rose significantly due to reduced cost of revenue, with diluted EPS reaching **$2.73** Q1 Statement of Income (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Operating Revenue** | $3,973 | $4,019 | | **Cost of revenue** | $2,145 | $2,341 | | **Operating Income** | $1,127 | $972 | | **Net Income** | $819 | $714 | | **Diluted EPS** | $2.73 | $2.33 | [Statement of Financial Position](index=4&type=section&id=Statement%20of%20Financial%20Position) As of March 31, 2024, ITW's total assets were **$15.65 billion**, with inventories and short-term debt increasing, while total stockholders' equity remained stable Key Balance Sheet Items (in millions) | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $6,371 | $6,235 | | **Total Assets** | $15,653 | $15,518 | | **Total current liabilities** | $4,844 | $4,675 | | **Total Liabilities** | $12,632 | $12,505 | | **Total stockholders' equity** | $3,021 | $3,013 | [Segment Performance](index=5&type=section&id=Segment%20Performance) ITW's segments showed varied Q1 2024 performance, with Automotive OEM and Specialty Products achieving positive organic growth, and Welding reporting the highest operating margin [Segment Financials (Q1 2024)](index=5&type=section&id=Segment%20Financials%20%28Q1%202024%29) In Q1 2024, Automotive OEM generated the most revenue, while Welding was the most profitable segment with an operating margin of **32.7%** Q1 2024 Performance by Segment (in millions) | Segment | Total Revenue (in millions) | Operating Income (in millions) | Operating Margin | | :--- | :--- | :--- | :--- | | **Automotive OEM** | $816 | $162 | 19.8% | | **Food Equipment** | $631 | $164 | 26.0% | | **Test & Measurement and Electronics** | $696 | $163 | 23.4% | | **Welding** | $476 | $156 | 32.7% | | **Polymers & Fluids** | $432 | $111 | 25.8% | | **Construction Products** | $488 | $143 | 29.4% | | **Specialty Products** | $440 | $130 | 29.7% | [Segment Growth and Margin Analysis (YoY)](index=6&type=section&id=Segment%20Growth%20and%20Margin%20Analysis%20%28YoY%29) Year-over-year, Specialty Products and Automotive OEM showed organic growth and significant margin expansion, while Construction Products experienced a decline Q1 2024 vs. Q1 2023 Segment Changes | Segment | Organic Revenue Change | Operating Margin Change | | :--- | :--- | :--- | | **Automotive OEM** | 3.4% | +370 bps | | **Food Equipment** | (1.4)% | (70) bps | | **Test & Measurement and Electronics** | (1.3)% | (110) bps | | **Welding** | (3.5)% | +80 bps | | **Polymers & Fluids** | (0.9)% | +140 bps | | **Construction Products** | (7.0)% | +190 bps | | **Specialty Products** | 5.5% | +410 bps | [Non-GAAP Reconciliations and Key Metrics](index=7&type=section&id=Non-GAAP%20Reconciliations%20and%20Key%20Metrics) This section reconciles key non-GAAP metrics including After-Tax ROIC, Free Cash Flow, and Adjusted EPS, adjusted for the one-time LIFO-to-FIFO accounting change [After-Tax Return on Average Invested Capital (ROIC)](index=7&type=section&id=After-Tax%20Return%20on%20Average%20Invested%20Capital%20%28ROIC%29) For Q1 2024, ITW's after-tax return on average invested capital improved to **30.1%** from **29.4%** in Q1 2023, adjusted for the inventory accounting change After-Tax Return on Average Invested Capital | Period | ROIC | | :--- | :--- | | **Three Months Ended Mar 31, 2024** | 30.1% | | **Three Months Ended Mar 31, 2023** | 29.4% | [Free Cash Flow](index=9&type=section&id=Free%20Cash%20Flow) Q1 2024 free cash flow was **$494 million**, a decrease from Q1 2023, with a GAAP conversion rate of **60%** to net income, or **68%** adjusted Free Cash Flow (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $589 | $728 | | **Additions to plant and equipment** | $(95) | $(113) | | **Free cash flow** | $494 | $615 | - Excluding the impact of the LIFO-to-FIFO accounting change, the free cash flow to net income conversion rate would have been **68%**[25](index=25&type=chunk) [Adjusted EPS Reconciliation](index=9&type=section&id=Adjusted%20EPS%20Reconciliation) Q1 2024 GAAP diluted EPS was **$2.73**, adjusted to **$2.44** after accounting for the **$0.29** per share net-of-tax benefit from the inventory accounting change Q1 2024 EPS Reconciliation | Description | Per Share Amount | | :--- | :--- | | **As reported (GAAP EPS)** | $2.73 | | **Cumulative effect of change in inventory accounting method, net of tax** | $(0.29) | | **As adjusted (Non-GAAP EPS)** | $2.44 | [Standard Disclosures](index=2&type=section&id=Standard%20Disclosures) This section provides legal and informational disclosures, clarifying non-GAAP financial measures, offering a safe harbor statement for forward-looking statements, and describing ITW - The earnings release contains non-GAAP financial measures, with reconciliations to comparable GAAP measures included in supplemental schedules[9](index=9&type=chunk) - Forward-looking statements regarding future performance are subject to risks and uncertainties, detailed in ITW's Form 10-K and other SEC filings[10](index=10&type=chunk) - ITW is a Fortune 200 global multi-industrial manufacturer with seven industry-leading segments and **$16.1 billion** in 2023 revenue[11](index=11&type=chunk)

In its upcoming report, Illinois Tool Works (ITW) is predicted by Wall Street analysts to post quarterly earnings of $2.35 per share, reflecting an increase of 0.9% compared to the same period last year. Revenues are forecasted to be $4.02 billion, representing no change year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Pr ...