Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q3 2020 Earnings Presentation
10 slides from Illinois Tool Works's earnings presentation, Oct 23, 2020
Slide 1: Third Quarter 2020 Earnings Conference Call
THIRD QUARTER 2020 EARNINGS CONFERENCE CALL OCTOBER 23, 2020
Slide 2: Forward-Looking Statement, Safe Harbor Statement
F O RWA R D - L O O K I N G S TAT E M E N T SAFE HARBOR STATEMENT This presentation and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the pot
Slide 3: Q3'20 Financial Performance
Q3’20 FINANCIAL PERFORMANCE COMMENTARY GAAP EPS $2.04 $1.01 $1.83 • Solid recovery progress as revenue was up 29% vs. Q2 - Organic revenue (5)% vs. (27)% in Q2 • Operating margin of 23.8% $3.5B $3.3B - Enterprise Initiatives contribute 120 bps REVENUE $2.6B - Remained invested in key initiatives sup
Slide 4: Q3 Recovery/Response by Segment
Q 3 R E C O V E RY / R E S P O N S E B Y S E G M E N T ORGANIC REVENUE OPERATING MARGIN Q2’20 Q3’20 Q2’20 Q3’20 Automotive OEM (53)% (5)% Automotive OEM (7.8)% 20.8% Food Equipment (38)% (20)% Food Equipment 9.2% 19.6% T&M / Electronics (11)% (2)% T&M / Electronics 25.7% 27.2%* Welding (25)% (10)% W
Slide 5: Q3'20 Performance
Q3’20 PERFORMANCE ORGANIC REVENUE BY GEOGRAPHY AUTOMOTIVE OEM (4)% (130) bps $744 $714 Q2’20 Q3’20 22.1% 20.8% North America (26)% (5)% EMEA (37)% (8)% Q3’19 Q3’20 Q3’19 Q3’20 Asia Pacific (7)% +3% Total Revenue Operating Margin China +1% +10% • Organic revenue (5)% Total ITW (27)% (5)% • North Amer
Slide 6: Q3'20 Segment Performance
Q3’20 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS (19)% (790) bps (4)% +160 bps 27.5% $512 27.2%* $551 $489 25.6% $449 19.6% 23.7% Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (20)% • Organic rev
Slide 7: Q3'20 Segment Performance
Q3’20 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS (14)% (30) bps +5% +250 bps 28.2% 27.9% 26.6% $402 $438 $418 24.1% $346 Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (10)% • Organic revenue 6% • Equipment (10)%, Co
Slide 8: Q3'20 Segment Performance
Q3’20 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS +10% +300 bps (5)% +180 bps 28.1% 28.0%* $456 $441 25.1% $420 26.2% $416 25.2% Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Q3’19 Q3’20 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 8% • Organic revenue (5)%
Slide 9: Full Year 2020 Financial Outlook
FULL YEAR 2020 FINANCIAL OUTLOOK Organic Revenue Operating Margin Operating Income (11) - (11.5)% 22 - 22.5% $2.7 - 2.8B We expect to provide FY’21 guidance when we release FY’20 results in February ’21 9
Slide 10: Q&A
Q&A 10