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ITW Reports Second Quarter 2022 Results

·16 min read
Illinois Tool Works Inc.
Illinois Tool Works Inc.
  • Total revenue of $4.0 billion; organic growth of 10%

  • GAAP EPS of $2.37 included $(0.15) of EPS headwind from foreign currency translation impact and higher restructuring expenses

  • Operating margin of 23.1% included 200 bps of operating leverage offset by (160) bps of price/cost impact and (100) bps of headwind from the MTS acquisition and higher restructuring expenses

  • Maintaining full-year 2022 guidance including organic revenue growth of 7% to 10% and record GAAP EPS of $9.00 to $9.40 per share

GLENVIEW, Ill., Aug. 02, 2022 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2022 results.

“In the current environment, our teams around the world continue to do an exceptional job of demonstrating the power and resilience of the ITW Business Model as evidenced by the more than 10 percent organic growth and 23 percent plus operating margin that they delivered in the second quarter,” said E. Scott Santi, Chairman and Chief Executive Officer. “Across the company we continue to leverage our 80/20 front-to-back driven operational capabilities to support our customers and execute our “Win the Recovery” strategy to accelerate profitable market penetration and organic growth across our portfolio. Looking ahead at the remainder of 2022, based on our first half results and current levels of demand, we are maintaining our current guidance for full-year 2022, including organic growth of 8.5 percent and record GAAP EPS of $9.20 at their respective mid-points. While the near-term environment has its challenges, we remain focused on delivering differentiated service to our customers, top-tier financial performance for our shareholders, and continued progress on our path to ITW’s full potential performance.”

Second Quarter 2022 Results
Second quarter revenue of $4.0 billion increased nine percent with organic revenue growth of 10 percent. The acquisition of MTS contributed three percent to revenue. Unfavorable foreign currency translation reduced revenue by four percent. Six of seven segments delivered positive organic growth in the quarter, led by Food Equipment up 25 percent, Welding up 22 percent, Construction Products up 15 percent, Polymers & Fluids up 10 percent, Automotive OEM up six percent, and Test & Measurement and

Electronics up one percent due to a difficult year-over-year comparison. Specialty Products organic revenue was down less than two percent. On a geographic basis, organic growth was 14 percent in North America, 6 percent in Europe, and 3 percent in Asia Pacific.

GAAP EPS was $2.37 and included $(0.05) of higher restructuring expenses related to 80/20 front-to-back projects, $(0.10) of unfavorable foreign currency translation, and a $0.16 one-time tax benefit related to the routine resolution of a U.S. tax audit. As a reminder, GAAP EPS of $2.45 in the second quarter of 2021 included a $0.35 one-time tax benefit. Operating margin was 24.1 percent excluding margin dilution impacts of (50) basis points each from the MTS acquisition and higher restructuring expenses. Enterprise initiatives contributed 90 basis points. Price/cost margin dilution impact moderated in the second quarter to (160) basis points compared to (250) basis points in the first quarter of 2022. Operating cash flow was $501 million, and free cash flow was $420 million with a conversion rate of 57 percent. The reported tax rate for the second quarter was 18.3 percent and excluding the one-time tax benefit, the effective tax rate was 23.9 percent.

2022 Guidance
ITW is maintaining its full-year GAAP EPS guidance of $9.00 to $9.40 per share. Based on current levels of demand, the company is projecting full-year revenue growth in the range of six to nine percent, with organic growth of seven to ten percent. At current foreign exchange rates, currency translation is projected to reduce revenue by four percent and EPS by approximately $(0.35). The acquisition of MTS is expected to add three percent to revenue. Operating margin is forecasted to be in the range of 24 to 25 percent, with enterprise initiatives contributing approximately 100 basis points and price/cost margin dilution impact of (100) basis points. Price is projected to exceed input cost inflation on a dollar-for-dollar basis. The expected free cash flow conversion rate is unchanged at 85 to 95 percent of net income, and the company is on pace to repurchase $1.5 billion of its own shares. The projected effective tax rate is 22 to 23 percent.

Non-GAAP Measures
This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information.

Forward-looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the duration and potential effects of the COVID-19 pandemic and global supply chain challenges, related government actions and the company’s strategy in response thereto on the company’s business, expected impact of inflation including raw material inflation, enterprise initiatives, future financial and operating performance, free cash flow and free cash flow conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, diluted income per share, restructuring expenses and related benefits, expected dividend payments, expected repatriation of overseas cash, after-tax return on invested capital, effective tax rates, exchange rates, expected access to liquidity sources, expected capital allocation, expected timing and amount of share repurchases, end market economic and regulatory conditions, potential acquisitions and divestitures and related impact on financial results, including statements with respect to the impact of the 2021 acquisition of the MTS Test & Simulation business, and the company’s 2022 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those anticipated. Such factors include those contained in ITW's Form 10-K for 2021 and subsequent reports filed with the SEC.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $14.5 billion in 2021. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 45,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

In millions except per share amounts

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating Revenue

$

4,011

 

 

$

3,676

 

 

$

7,950

 

 

$

7,220

 

Cost of revenue

 

2,392

 

 

 

2,163

 

 

 

4,749

 

 

 

4,202

 

Selling, administrative, and research and development expenses

 

659

 

 

 

588

 

 

 

1,311

 

 

 

1,154

 

Amortization and impairment of intangible assets

 

34

 

 

 

32

 

 

 

69

 

 

 

66

 

Operating Income

 

926

 

 

 

893

 

 

 

1,821

 

 

 

1,798

 

Interest expense

 

(47

)

 

 

(52

)

 

 

(95

)

 

 

(104

)

Other income (expense)

 

24

 

 

 

22

 

 

 

38

 

 

 

34

 

Income Before Taxes

 

903

 

 

 

863

 

 

 

1,764

 

 

 

1,728

 

Income Taxes

 

165

 

 

 

88

 

 

 

364

 

 

 

282

 

Net Income

$

738

 

 

$

775

 

 

$

1,400

 

 

$

1,446

 

 

 

 

 

 

 

 

 

Net Income Per Share:

 

 

 

 

 

 

 

Basic

$

2.37

 

 

$

2.46

 

 

$

4.49

 

 

$

4.58

 

Diluted

$

2.37

 

 

$

2.45

 

 

$

4.48

 

 

$

4.56

 

 

 

 

 

 

 

 

 

Cash Dividends Per Share:

 

 

 

 

 

 

 

Paid

$

1.22

 

 

$

1.14

 

 

$

2.44

 

 

$

2.28

 

Declared

$

1.22

 

 

$

1.14

 

 

$

2.44

 

 

$

2.28

 

 

 

 

 

 

 

 

 

Shares of Common Stock Outstanding During the Period:

 

 

 

 

 

 

 

Average

 

310.6

 

 

 

315.6

 

 

 

311.5

 

 

 

316.1

 

Average assuming dilution

 

311.5

 

 

 

316.9

 

 

 

312.6

 

 

 

317.4

 


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millions

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Current Assets:

 

 

 

Cash and equivalents

$

879

 

 

$

1,527

 

Trade receivables

 

3,109

 

 

 

2,840

 

Inventories

 

1,975

 

 

 

1,694

 

Prepaid expenses and other current assets

 

305

 

 

 

313

 

Assets held for sale

 

103

 

 

 

 

Total current assets

 

6,371

 

 

 

6,374

 

 

 

 

 

Net plant and equipment

 

1,736

 

 

 

1,809

 

Goodwill

 

4,870

 

 

 

4,965

 

Intangible assets

 

832

 

 

 

972

 

Deferred income taxes

 

498

 

 

 

552

 

Other assets

 

1,359

 

 

 

1,405

 

 

$

15,666

 

 

$

16,077

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current Liabilities:

 

 

 

Short-term debt

$

1,525

 

 

$

778

 

Accounts payable

 

679

 

 

 

585

 

Accrued expenses

 

1,562

 

 

 

1,648

 

Cash dividends payable

 

378

 

 

 

382

 

Income taxes payable

 

120

 

 

 

77

 

Liabilities held for sale

 

30

 

 

 

 

Total current liabilities

 

4,294

 

 

 

3,470

 

 

 

 

 

Noncurrent Liabilities:

 

 

 

Long-term debt

 

6,115

 

 

 

6,909

 

Deferred income taxes

 

632

 

 

 

654

 

Noncurrent income taxes payable

 

274

 

 

 

365

 

Other liabilities

 

972

 

 

 

1,053

 

Total noncurrent liabilities

 

7,993

 

 

 

8,981

 

 

 

 

 

Stockholders’ Equity:

 

 

 

Common stock

 

6

 

 

 

6

 

Additional paid-in-capital

 

1,464

 

 

 

1,432

 

Retained earnings

 

24,967

 

 

 

24,325

 

Common stock held in treasury

 

(21,382

)

 

 

(20,636

)

Accumulated other comprehensive income (loss)

 

(1,677

)

 

 

(1,502

)

Noncontrolling interest

 

1

 

 

 

1

 

Total stockholders’ equity

 

3,379

 

 

 

3,626

 

 

$

15,666

 

 

$

16,077

 


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Three Months Ended June 30, 2022

Dollars in millions

Total Revenue

Operating Income

Operating Margin

Automotive OEM

$

711

 

$

101

 

14.3

%

Food Equipment

 

614

 

 

152

 

24.7

%

Test & Measurement and Electronics

 

696

 

 

157

 

22.5

%

Welding

 

486

 

 

142

 

29.3

%

Polymers & Fluids

 

496

 

 

125

 

25.1

%

Construction Products

 

565

 

 

156

 

27.6

%

Specialty Products

 

447

 

 

121

 

26.9

%

Intersegment

 

(4

)

 

 

%

Total Segments

 

4,011

 

 

954

 

23.8

%

Unallocated

 

 

 

(28

)

%

Total Company

$

4,011

 

$

926

 

23.1

%


Six Months Ended June 30, 2022

Dollars in millions

Total Revenue

Operating Income

Operating Margin

Automotive OEM

$

1,471

 

$

239

 

16.3

%

Food Equipment

 

1,180

 

 

278

 

23.6

%

Test & Measurement and Electronics

 

1,381

 

 

306

 

22.2

%

Welding

 

936

 

 

281

 

30.0

%

Polymers & Fluids

 

977

 

 

243

 

24.8

%

Construction Products

 

1,116

 

 

292

 

26.2

%

Specialty Products

 

899

 

 

241

 

26.8

%

Intersegment

 

(10

)

 

 

%

Total Segments

 

7,950

 

 

1,880

 

23.6

%

Unallocated

 

 

 

(59

)

%

Total Company

$

7,950

 

$

1,821

 

22.9

%


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Q2 2022 vs. Q2 2021 Favorable/(Unfavorable)

Operating Revenue

Automotive
OEM

Food
Equipment

Test &
Measurement
and
Electronics

Welding

Polymers &
Fluids

Construction
Products

Specialty
Products

Total ITW

Organic

6.1

%

25.0

%

0.9

%

22.1

%

10.2

%

15.1

%

(1.7

)%

10.4

%

Acquisitions/
Divestitures

%

%

17.8

%

%

%

%

%

2.9

%

Translation

(5.5

)%

(5.4

)%

(3.8

)%

(1.3

)%

(3.5

)%

(6.0

)%

(3.3

)%

(4.2

)%

Operating Revenue

0.6

%

19.6

%

14.9

%

20.8

%

6.7

%

9.1

%

(5.0

)%

9.1

%


Q2 2022 vs. Q2 2021 Favorable/(Unfavorable)

Change in Operating Margin

Automotive OEM

Food Equipment

Test &
Measurement
and Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Operating Leverage

120 bps

480 bps

20 bps

290 bps

170 bps

220 bps

(20) bps

200 bps

Changes in Variable Margin & OH Costs

(300) bps

(200) bps

(260) bps

(220) bps

(400) bps

(220) bps

 

(220) bps

Total Organic

(180) bps

280 bps

(240) bps

70 bps

(230) bps

 

(20) bps

(20) bps

Acquisitions/
Divestitures

 

 

(330) bps

 

 

 

 

(50) bps

Restructuring/Other

(270) bps

(10) bps

10 bps

10 bps

10 bps

 

(10) bps

(50) bps

Total Operating Margin Change

(450) bps

270 bps

(560) bps

80 bps

(220) bps

 

(30) bps

(120) bps

 

 

 

 

 

 

 

 

 

Total Operating Margin % *

14.3

%

24.7

%

22.5

%

29.3

%

25.1

%

27.6

%

26.9

%

23.1

%

 

 

 

 

 

 

 

 

 

*Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

40 bps

50 bps

200 bps

10 bps

210 bps

20 bps

60 bps

90 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.08) on GAAP earnings per share for the second quarter of 2022.


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

1H 2022 vs. 1H 2021 Favorable/(Unfavorable)

Operating Revenue

Automotive
OEM

Food
Equipment

Test &
Measurement
and
Electronics

Welding

Polymers &
Fluids

Construction
Products

Specialty
Products

Total ITW

Organic

2.5

%

26.5

%

4.3

%

17.5

%

11.5

%

18.1

%

(0.6

)%

10.5

%

Acquisitions/
Divestitures

%

%

17.9

%

%

%

%

%

2.9

%

Translation

(3.8

)%

(4.2

)%

(3.0

)%

(1.0

)%

(3.0

)%

(5.0

)%

(2.5

)%

(3.3

)%

Operating Revenue

(1.3

)%

22.3

%

19.2

%

16.5

%

8.5

%

13.1

%

(3.1

)%

10.1

%


1H 2022 vs. 1H 2021 Favorable/(Unfavorable)

Change in Operating Margin

Automotive
OEM

Food Equipment

Test &
Measurement
and
Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Operating Leverage

40 bps

520 bps

100 bps

230 bps

200 bps

260 bps

(10) bps

200 bps

Changes in Variable Margin & OH Costs

(390) bps

(310) bps

(340) bps

(170) bps

(380) bps

(410) bps

(60) bps

(300) bps

Total Organic

(350) bps

210 bps

(240) bps

60 bps

(180) bps

(150) bps

(70) bps

(100) bps

Acquisitions/

Divestitures

 

 

(370) bps

 

 

 

 

(60) bps

Restructuring/Other

(180) bps

(10) bps

10 bps

 

 

10 bps

10 bps

(40) bps

Total Operating Margin Change

(530) bps

200 bps

(600) bps

60 bps

(180) bps

(140) bps

(60) bps

(200) bps

 

 

 

 

 

 

 

 

 

Total Operating Margin % *

16.3

%

23.6

%

22.2

%

30.0

%

24.8

%

26.2

%

26.8

%

22.9

%

 

 

 

 

 

 

 

 

 

*Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

30 bps

50 bps

200 bps

10 bps

220 bps

10 bps

60 bps

90 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.17) on GAAP earnings per share for the first half of 2022.


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

Dollars in millions

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Numerator:

 

 

 

 

 

 

 

Net Income

$

738

 

 

$

775

 

 

$

1,400

 

 

$

1,446

 

Discrete tax benefit related to the second quarter 2022

 

(51

)

 

 

 

 

 

(51

)

 

 

 

Discrete tax benefit related to the second quarter 2021

 

 

 

 

(112

)

 

 

 

 

 

(112

)

Interest expense, net of tax (1)

 

36

 

 

 

41

 

 

 

73

 

 

 

81

 

Other (income) expense, net of tax (1)

 

(18

)

 

 

(17

)

 

 

(29

)

 

 

(26

)

Operating income after taxes

$

705

 

 

$

687

 

 

$

1,393

 

 

$

1,389

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Invested capital:

 

 

 

 

 

 

 

Cash and equivalents

$

879

 

 

$

2,058

 

 

$

879

 

 

$

2,058

 

Trade receivables

 

3,109

 

 

 

2,786

 

 

 

3,109

 

 

 

2,786

 

Inventories

 

1,975

 

 

 

1,400

 

 

 

1,975

 

 

 

1,400

 

Net assets held for sale

 

73

 

 

 

 

 

 

73

 

 

 

 

Net plant and equipment

 

1,736

 

 

 

1,767

 

 

 

1,736

 

 

 

1,767

 

Goodwill and intangible assets

 

5,702

 

 

 

5,374

 

 

 

5,702

 

 

 

5,374

 

Accounts payable and accrued expenses

 

(2,241

)

 

 

(1,933

)

 

 

(2,241

)

 

 

(1,933

)

Debt

 

(7,640

)

 

 

(7,648

)

 

 

(7,640

)

 

 

(7,648

)

Other, net

 

(214

)

 

 

(283

)

 

 

(214

)

 

 

(283

)

Total net assets (stockholders' equity)

 

3,379

 

 

 

3,521

 

 

 

3,379

 

 

 

3,521

 

Cash and equivalents

 

(879

)

 

 

(2,058

)

 

 

(879

)

 

 

(2,058

)

Debt

 

7,640

 

 

 

7,648

 

 

 

7,640

 

 

 

7,648

 

Total invested capital

$

10,140

 

 

$

9,111

 

 

$

10,140

 

 

$

9,111

 

 

 

 

 

 

 

 

 

Average invested capital (2)

$

10,143

 

 

$

8,926

 

 

$

10,024

 

 

$

8,864

 

 

 

 

 

 

 

 

 

Net income to average invested capital (3)

 

29.1

%

 

 

34.8

%

 

 

27.9

%

 

 

32.6

%

After-tax return on average invested capital (3)

 

27.8

%

 

 

30.8

%

 

 

27.8

%

 

 

31.3

%

(1) Effective tax rate used for interest expense and other (income) expense for the three months ended June 30, 2022 and 2021 was 23.9% and 23.0%, respectively. Effective tax rate used for interest expense and other (income) expense for the six months ended June 30, 2022 and 2021 was 23.5% and 22.7%, respectively.

(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

(3) Returns for the three months ended June 30, 2022 and 2021 were converted to an annual rate by multiplying the calculated return by 4. Returns for the six months ended June 30, 2022 and 2021 were converted to an annual rate by multiplying the calculated return by 2.

A reconciliation of the tax rate for the three and six months ended June 30, 2022, excluding the second quarter 2022 discrete tax benefit of $51 million related to the resolution of a U.S. tax audit, is as follows:

 

Three Months Ended

 

Six Months Ended

 

June 30, 2022

 

June 30, 2022

Dollars in millions

Income Taxes

 

Tax Rate

 

Income Taxes

 

Tax Rate

As reported

$

165

 

18.3

%

 

$

364

 

20.7

%

Discrete tax benefit related to the second quarter 2022

 

51

 

5.6

%

 

 

51

 

2.8

%

As adjusted

$

216

 

23.9

%

 

$

415

 

23.5

%

A reconciliation of the tax rate for the three and six months ended June 30, 2021, excluding the second quarter 2021 discrete tax benefit of $112 million related to a change in the U.K. income tax rate, is as follows:

 

Three Months Ended

 

Six Months Ended

 

June 30, 2021

 

June 30, 2021

Dollars in millions

Income Taxes

 

Tax Rate

 

Income Taxes

 

Tax Rate

As reported

$

88

 

10.1

%

 

$

282

 

16.3

%

Discrete tax benefit related to the second quarter 2021

 

112

 

12.9

%

 

 

112

 

6.4

%

As adjusted

$

200

 

23.0

%

 

$

394

 

22.7

%


AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

 

Twelve Months Ended

Dollars in millions

December 31, 2021

Numerator:

 

Net income

$

2,694

 

Discrete tax benefit related to the third quarter 2021

 

(21

)

Discrete tax benefit related to the second quarter 2021

 

(112

)

Interest expense, net of tax (1)

 

157

 

Other (income) expense, net of tax (1)

 

(40

)

Operating income after taxes

$

2,678

 

 

 

Denominator:

 

Invested capital:

 

Cash and equivalents

$

1,527

 

Trade receivables

 

2,840

 

Inventories

 

1,694

 

Net plant and equipment

 

1,809

 

Goodwill and intangible assets

 

5,937

 

Accounts payable and accrued expenses

 

(2,233

)

Debt

 

(7,687

)

Other, net

 

(261

)

Total net assets (stockholders' equity)

 

3,626

 

Cash and equivalents

 

(1,527

)

Debt

 

7,687

 

Total invested capital

$

9,786

 

 

 

Average invested capital (2)

$

9,087

 

 

 

Net income to average invested capital

 

29.6

%

After-tax return on average invested capital

 

29.5

%

(1)  Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2021 was 23.0%.

(2)  Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.

A reconciliation of the 2021 effective tax rate excluding the third quarter 2021 discrete tax benefit of $21 million related to the utilization of capital losses and the second quarter 2021 discrete tax benefit of $112 million related to a change in the U.K. income tax rate, is as follows:

 

Twelve Months Ended

 

December 31, 2021

Dollars in millions

Income Taxes

 

Tax Rate

As reported

$

632

 

19.0

%

Discrete tax benefit related to the third quarter 2021

 

21

 

0.6

%

Discrete tax benefit related to the second quarter 2021

 

112

 

3.4

%

As adjusted

$

765

 

23.0

%


FREE CASH FLOW (UNAUDITED)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

Dollars in millions

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

501

 

 

$

555

 

 

$

824

 

 

$

1,164

 

Less: Additions to plant and equipment

 

(81

)

 

 

(78

)

 

 

(155

)

 

 

(146

)

Free cash flow

$

420

 

 

$

477

 

 

$

669

 

 

$

1,018

 

 

 

 

 

 

 

 

 

Net Income

$

738

 

 

$

775

 

 

$

1,400

 

 

$

1,446

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities to net income conversion rate

 

68

%

 

 

72

%

 

 

59

%

 

 

80

%

Free cash flow to net income conversion rate

 

57

%

 

 

62

%

 

 

48

%

 

 

70

%


Media Contact

Investor Relations

Tel: 224.661.7451

Karen Fletcher

mediarelations@itw.com

Tel: 224.661.7433

 

investorrelations@itw.com