Illinois Tool Works Inc. (NYSE: ITW), Glenview, IL, reported sales for the first quarter of $4 billion, down 8 percent from the same period a year ago. Organic sales declined 2.7 percent. Profit fell 27 percent to $354 million.
By geography, North American organic revenues decreased 1.9 percent and international organic revenues declined 3.5 percent. While European organic revenues fell 5.8 percent, Asia Pacific organic revenues grew 0.5 percent. China organic revenues increased 10.2 percent.
The Automotive OEM segment led the company in organic growth, increasing 4 percent. North American automotive organic revenues grew 3 percent, outpacing a North American auto build increase of 1 percent. While European organic revenues declined 2 percent, European auto builds fell 8 percent. Asia Pacific organic revenues increased 24 percent.
"Despite softer than anticipated demand in many of our end markets, we delivered very solid operating results in the quarter,” said E. Scott Santi, president and CEO. "…In addition, we continued to make significant progress with respect to our portfolio management initiative in the quarter as we announced the strategic review of our Industrial Packaging segment and moved more than $600 million of other non-core revenues to discontinued operations. With these two moves, we have largely completed the process of identifying the core businesses that will constitute our faster growing and more profitable portfolio moving forward.”