ITW(US:ITW)2023-10-24 20:32Financial Performance - Operating revenue for Q3 2023 was $4,031 million, a slight increase of 0.5% compared to $4,011 million in Q3 2022[14] - Net income for Q3 2023 reached $772 million, up 6.2% from $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% compared to $2,127 million in 2022[25] - Total operating revenue for the nine months ended September 30, 2023, was $12,124 million, up 1.4% from $11,961 million in 2022[31] - Operating income for Q3 2023 was $1.070 billion, an 8.9% increase from $983 million in Q3 2022[81] - Operating income for the nine months ended September 30, 2023, was $3,052 million, reflecting an 8.8% increase from $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% in Q3 2023, with operating income rising by 14.5%[91] - Operating revenue for the Food Equipment segment increased by 7.2% to $678 million in Q3 2023, compared to $633 million in Q3 2022[94] - Operating revenue for the Welding segment declined by 1.8% to $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%, compared to 23.7% for the same period in 2022[128] - The effective tax rate for Q3 2023 was 23.8%, slightly down from 23.9% in Q3 2022[88] - Interest expense rose to $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% for Q3 2023, compared to 29.9% in Q3 2022[127] - The company has a $3.0 billion revolving credit facility with no amounts outstanding as of September 30, 2023[135]