Illinois Tool Works Inc., Glenview, IL, reported fourth quarter sales of $3.68 billion, a decline of 5.9% from fourth quarter 2007. Profit fell 50% to $233.8 million.
Organic sales declined 9.2% in the quarter due to further weakening in worldwide end markets, with North America decreasing 12.3% and international falling 6.2%. The strengthening U.S. dollar negatively impacted revenues by 4.5%, and acquisitions contributed 7.8% of growth in the fourth quarter.
For full-year 2008, operating revenues of $15.9 billion were 6.7% higher than full-year 2007. Base revenues declined 2.5% in 2008, with North America down 4.8% and international essentially flat for the year. Acquisitions and currency translation contributed 6.6% and 2.8%, respectively, to the 2008 revenue increase. Profit declined 18.7%.
On a segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below:
Power Systems and Electronics: -9.5% Transportation: -4.7% Construction Products: -21.9% Food Equipment: -4.1%
With $15.9 billion in revenues, ITW is a diversified and value-added manufacturer of industrial products and equipment. The Company consists of 875 business units in 54 countries and employs 65,000 people.