Illinois Tool (ITW) Picks O'Herlihy as CEO, Santi to Retire
Illinois Tool Works ITW has chosen veteran Christopher A. O’Herlihy to succeed E. Scott Santi as its new chief executive officer (CEO). Santi is set to retire in early 2024 after having been associated with the company for more than 40 years. He will, however, remain chairman of the board until Mar 1, 2024. Thereafter, he will become non-executive chairman of the ITW Board.
Currently serving as the vice chairman of Illinois Tool, O’Herlihy has been named president and elected to the company’s board, besides being appointed as the CEO. He is set to assume his role from Jan 1, 2024 onward.
O’Herlihy has been associated with ITW for the past 34 years. He has been serving as the vice chairman of the company since 2015. Prior to this, in 2010, he was appointed as the executive vice president of the company’s Food Equipment Group.
Illinois Tool Works Inc. Price
Illinois Tool Works Inc. price | Illinois Tool Works Inc. Quote
Santi has been serving as CEO of Illinois Tool since 2012. Along with his position as CEO, he was appointed as the chairman in 2015. Under his leadership, since 2012 to date, ITW’s market capitalization has increased from $23 billion to $74 billion.
Illinois Tool is benefiting from stable underlying demand and improving supply chains. Strength across all regions and strong organic growth is boosting revenues in the Automotive Original Equipment Manufacturer (OEM) segment (revenues up 10.3% year over year in the first half of 2023). The Food Equipment unit is being aided by growth across both North America and International operations and strength across institutional end markets. Revenues from the segment jumped 9.2% in the first half of 2023.
Strength in the capital equipment business bodes well for the Test & Measurement and Electronics segment (revenues inched up 1.6% in the first half of 2023). Solid industrial and consumables businesses are aiding the Welding segment (revenues up 5% in the first six months of 2023). It remains to be seen how ITW’s growth story unfolds with O’Herlihy at its helm.
Zacks Rank & Key Picks
Illinois Tool presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Flowserve Corporation FLS presently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 6.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Flowserve has an estimated earnings growth rate of 79.1% for the current year. The stock has jumped 30.9% so far this year.
Graham Corporation GHM currently flaunts a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 243.1%, on average.
Graham has an estimated earnings growth rate of 400% for the current fiscal year. The stock has rallied 71.8% so far this year.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
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