Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q1 2014 Earnings Presentation
9 slides from Illinois Tool Works's earnings presentation, Apr 22, 2014
Slide 1: First Quarter 2014 Conference Call
First Quarter 2014 Conference Call Scott Santi, President & CEO Michael Larsen, Senior Vice President & CFO John Brooklier, Vice President Investor Relations April 22, 2014 FORWARD LOOKING STATEMENTS Safe Harbor Statement This conference call contains forward-looking statements within the meaning of
Slide 2: Q1 2014 Financial Summary
Q1 2014 Financial Summary Financial Highlights EPS +15% $1.01 ● Organic revenue up 3.3% … international EPS $0.88 up 6.3% $3.6B ● Total revenue up 4.4% Total $3.4B ● Good progress on operating margins … up Revenue 180 bps driven by enterprise initiatives – BSS and sourcing contribute 120 bps ● Accel
Slide 3: Q1 Revenue Growth by Geography
Q1 Q42014 2013Organic Revenue Revenues Growth by Geography Growth by Geography Highlights ● Solid growth in Europe – Automotive OEM +14%, Food Equipment +6% ● Asia Pacific driven by Australia +13% and 18% China +6% Organic up 3.3% – Automotive OEM +17%, Construction +14% 7% 6% ● Good performance in
Slide 4: Q1 2014 Operating Margin Expansion
Q1 2014 Operating Margin Expansion Operating Margins Key Drivers 18.7% 16.9% Q1 Enterprise Initiatives +120 bps Q1‘13 Q1‘14 Volume +80 OM% V bps Automotive OEM 23.3% +350 Price/Cost +10 T&M and Electronics 12.2 -80 Food Equipment 18.6 +190 Acquisitions -20 Polymers & Fluids 16.6 +200 Margin Expansio
Slide 5: Q1 2014 Segment Results: Automotive OEM
Q1 2014 Segment Results ($’s in millions) By Segment Automotive OEM Total Operating +13% +350 bps Revenue Income $668 23.3% $589 19.8% Q1'14 VPY% Q1'14 VPY% Automotive OEM $668 13% $156 34% T&M and Electronics 519 Flat 63 -7% Q1‘13 Q1‘14 Q1‘13 Q1‘14 Total Revenue Operating Margin Food Equipment 511
Slide 6: Q1 2014 Segment Results: Test & Measurement and Food Equipment
Q1 2014 Segment Results ($’s in millions) Test & Measurement and Electronics Food Equipment ~Flat -80 bps +9% +190 bps $520 $519 $511 18.6% $467 16.7% 13.0% 12.2% Q1‘13 Q1’14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Total Revenue Operating Margin Total Revenue Operating Margin Dynamics Dynamics ● Organic
Slide 7: Q1 2014 Segment Results: Polymers & Fluids and Welding
Q1 2014 Segment Results ($’s in millions) Polymers & Fluids Welding -3% +200 bps -2% -30 bps 26.0% 25.7% $492 $479 16.6% $472 $463 14.6% Q1‘13 Q1‘14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Total Revenue Operating Margin Total Revenue Operating Margin Dynamics Dynamics ● Organic revenue flat due to ongoi
Slide 8: Q1 2014 Segment Results: Construction and Specialty Products
Q1 2014 Segment Results ($’s in millions) Construction Products Specialty Products +2% +310 bps +8% +120 bps $520 19.9% 21.1% $416 $481 $409 14.8% 11.7% Q1‘13 Q1‘14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Q1‘13 Q1‘14 Total Revenue Operating Margin Total Revenue Operating Margin Dynamics Dynamics ● +5% organic reven
Slide 9: Financial Guidance
Financial Guidance Q2 2014 EPS Guidance 2014 EPS Guidance EPS +30% EPS +25% at mid-point at mid-point $1.16 - $1.24 $4.45 - $4.65 EPS $0.92 $3.63 EPS Up 3-5% Up 3-4% $3.6B $14.1B Total Total Revenue Revenue Q2’13 Q2’14F 2013 2014F ● 2-3% organic revenue growth ● 2-3% organic revenue growth ● Initiat