Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q1 2016 Earnings Presentation
13 slides from Illinois Tool Works's earnings presentation, Apr 20, 2016
Slide 1: First Quarter 2016 Conference Call
First Quarter 2016 Conference Call E. Scott Santi, Chairman & CEO Michael M. Larsen, Senior Vice President & CFO Aaron H. Hoffman, Vice President, Investor Relations April 20, 2016
Slide 2: Forward Looking Statement
First Quarter 2016 Forward Looking Statement Safe Harbor Statement This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the expected impact of product line simplificatio
Slide 3: First Quarter 2016 Highlights
First Quarter 2016 Highlights ● Strong start to 2016 despite a challenging environment … meaningful improvement on all performance metrics – GAAP EPS of $1.29 up 7% … up 10% excluding the impact of foreign currency translation – 22.1% operating margin increased 120 basis points … 130 basis points of
Slide 4: Financial Performance
First Quarter 2016 Financial Performance Q1 2016 Results Highlights EPS +7% ● $1.29 GAAP EPS up 7%, up 10% excluding $(0.04) currency $1.29 – $0.04 above guidance mid-point on strong operational performance GAAP EPS $1.21 ● 1% organic growth in line with guidance $3.3B $3.3B – North America +2%, Int
Slide 5: Balanced Portfolio
First Quarter 2016 Balanced Portfolio Year-over-Year Sequential % of Revenues Q1’16 vs. Q1’15 Q1’16 vs. Q4’15* Consumer Facing ~60% +3% +1% Industrial Facing ~40% (3)% (5)% Total Revenue 100% +1% (1)% *Adjusted for normal seasonality. 5
Slide 6: Organic Revenue Growth
First Quarter 2016 Organic Revenue Growth Growth by Geography Highlights 1% Organic* ● North America +2% organic growth – Consumer +5% e.g. Food Equipment +5%, Automotive +4%, 2% Construction Products Renovation/Remodeling +22% – Industrial (3)% e.g. Welding (7)%, Test & Measurement and Inter- 1% As
Slide 7: Operating Margin
First Quarter 2016 Operating Margin +120 bps Key Drivers 22.1% 20.9% Q1'16 Enterprise Initiatives +130 bps Q1'15 Q1'16 Price/Cost +20 OM% V bps Automotive OEM 26.4% +140 bps Volume +20 Food Equipment 24.5 +190 T&M and Electronics 15.5 +80 Other (50) Welding 23.9 (300) Margin Expansion +120 bps Polym
Slide 8: Segment Results
First Quarter 2016 Segment Results Operating Margin Progression Automotive OEM +520 bps Organic +3% Total Flat +140 bps 22.1% 20.9% $653 $656 26.4% 18.7% 25.0% 16.9% Operating Margin Q1'15 Q1'16 Q1'15 Q1'16 Q1'13 Q1'14 Q1'15 Q1'16 Total Revenue Operating Margin Q1’13 Q1‘16 V bps Highlights Automotiv
Slide 9: Segment Results
First Quarter 2016 Segment Results Food Equipment Test & Measurement/Electronics Organic +3% Organic (2)% +190 bps +80 bps Total +1% Total (4)% $499 24.5% $483 $495 22.6% $464 15.5%* 14.7% Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Total Revenue Operating Margin Total Revenue Operating Margin H
Slide 10: Segment Results
First Quarter 2016 Segment Results Welding Polymers & Fluids Organic (9)% Organic +1% (300) bps +20 bps Total (10)% Total (5)% $433 26.9% $441 23.9% 20.0% 20.2%* $389 $418 Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Total Revenue Operating Margin Total Revenue Operating Margin Highlights Highlig
Slide 11: Segment Results
First Quarter 2016 Segment Results Construction Products Specialty Products Organic +5% Organic +3% +440 bps +350 bps Total +1% Total +1% 21.0% 26.1% $384 $462 $468 $381 22.6% 16.6% Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Total Revenue Operating Margin Total Revenue Operating Margin Highligh
Slide 12: 2016 Financial Outlook
First Quarter 2016 2016 Financial Outlook 2016 Guidance Highlights EPS +7% ● Raising guidance by $0.05 to GAAP EPS $5.40 to $5.60 $5.40 - $5.60 – 7% earnings growth at $5.50 mid-point GAAP EPS $5.13 ● 1 to 3% organic growth in line with prior guidance Organic 1 to 3% ● 22.5%+ operating margin with m
Slide 13: Q&A
WTVA/ Q&A