Illinois Tool Works Organic Sales Up 0.4% in Third Quarter - Modern Distribution Management

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Illinois Tool Works Organic Sales Up 0.4% in Third Quarter

North American organic revenues fall 1.4 percent in the quarter for ITW.

Illinois Tool Works Inc. (NYSE: ITW), Glenview, IL, reported third-quarter sales of $3.6 billion, down 4 percent from the same period a year ago. Profit fell 14 percent to $452 million.

Excluding the impact of Decorative Surfaces’ 2012 results, company operating revenues grew 2.9 percent and operating income increased 8.4 percent. 

Organic revenues grew 0.4 percent, with international organic revenues growing 2.9 percent and North American organic revenues declining 1.4 percent.

Internationally, Asia Pacific organic revenues grew 6.9 percent, with China organic revenues increasing 21.5 percent. In addition, European organic revenues grew 1 percent. According to a news release, the manufacturer was faced with a difficult year-over-year comparison in its electronics assembly platform, which negatively impacted total company organic revenue growth by 2.5 percent.

By segment, highlights included:

Automotive OEM's organic revenues increased 11.5 percent, with strong growth across all regions. By comparison, worldwide auto builds increased 4 percent in the quarter. Automotive OEM operating margins improved 200 basis points to 21.1 percent.

Food Equipment's organic revenues grew 4.4 percent, with across-the-board contributions from the North American and international equipment and service businesses. Food Equipment operating margins improved 90 basis points to 19.9 percent.

Construction Products’ organic revenues increased 3.3 percent due to 9.3 percent organic revenue growth in North America. Operating margins improved 250 basis points to 16.2 percent.

Year-to-date, sales were $10.5 billion, down 7 percent from a year ago. Year-to-date profit fell 33 percent to $1.3 billion.

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