ITW(ITW) - 2023 Q3 - Quarterly Report

Financial Performance - Operating revenue for Q3 2023 was $4,031 million, a slight increase of 0.5$4,011 million in Q3 2022[14] - Net income for Q3 2023 reached $772 million, up 6.2$727 million in Q3 2022[17] - Basic net income per share increased to $2.55 in Q3 2023, compared to$2.36 in Q3 2022, reflecting a growth of 8.1%[14] - Comprehensive income for Q3 2023 was $690 million, significantly higher than$522 million in Q3 2022, marking a 32.2% increase[17] - Net income for the nine months ended September 30, 2023, was $2,240 million, an increase of 5.3$2,127 million in 2022[25] - Total operating revenue for the nine months ended September 30, 2023, was $12,124 million, up 1.4$11,961 million in 2022[31] - Operating income for Q3 2023 was $1.070 billion, an 8.9$983 million in Q3 2022[81] - Operating income for the nine months ended September 30, 2023, was $3,052 million, reflecting an 8.8$2,804 million in 2022[83] Assets and Liabilities - Total current assets as of September 30, 2023, were $6,288 million, slightly up from$6,270 million at the end of 2022[20] - Cash and equivalents increased to $990 million in Q3 2023, compared to$708 million at the end of 2022[20] - Total liabilities decreased to $12,391 million as of September 30, 2023, down from$12,333 million at the end of 2022[20] - Long-term debt increased to $6,818 million as of September 30, 2023, compared to$6,173 million at the end of 2022[20] - Total debt increased from $7,763 million as of December 31, 2022, to$8,066 million as of September 30, 2023, with short-term debt comprising $1,248 million[50] - Net working capital as of September 30, 2023, was$2,306 million, an increase of $496 million compared to$1,810 million as of December 31, 2022[129] Cash Flow and Investments - Net cash provided by operating activities increased to $2,500 million from$1,537 million, representing a growth of 62.5% year-over-year[25] - The company reported a net cash used for investing activities of $(283) million, compared to$(237) million in the same period last year[25] - Free cash flow for Q3 2023 was $856 million, up from$612 million in Q3 2022, while year-to-date free cash flow was $2,176 million compared to$1,281 million[121] Dividends and Share Repurchase - The company declared dividends of $1.40 per share in Q3 2023, totaling$422 million[21] - Cash dividends paid during the nine months ended September 30, 2023, totaled $1,194 million, compared to$1,139 million in 2022, marking a 4.8% increase[25] - The company announced a new stock repurchase program on August 4, 2023, allowing for the repurchase of up to $5.0 billion of common stock[125] - The company repurchased approximately 1.6 million shares for about$375 million in Q3 2023, totaling 4.8 million shares for $1.1 billion year-to-date[88] Segment Performance - Automotive OEM segment revenue for the nine months ended September 30, 2023, was$2,421 million, a 8.9% increase from $2,224 million in 2022[31] - Food Equipment segment revenue rose to$1,967 million, reflecting a 8.5% increase compared to $1,813 million in the previous year[31] - Operating revenue in the Automotive OEM segment increased by 6.0$678 million in Q3 2023, compared to $633 million in Q3 2022[94] - Operating revenue for the Welding segment declined by 1.8$468 million in Q3 2023, compared to $477 million in Q3 2022[107] Tax and Interest - The effective tax rate for the nine months ended September 30, 2023, was 23.4$67 million in Q3 2023 from $52 million in Q3 2022, attributed to higher interest rates[117] Other Financial Metrics - The total debt to EBITDA ratio remained stable at 1.8 for the trailing twelve months ended September 30, 2023, consistent with the ratio as of December 31, 2022[136] - After-tax return on average invested capital was 31.9$3.0 billion revolving credit facility with no amounts outstanding as of September 30, 2023[135]