Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q2 2011 Earnings Presentation
22 slides from Illinois Tool Works's earnings presentation, Jul 26, 2011
Slide 1: ITW Conference Call Second Quarter 2011
Exhibit 99.2 ITW Conference Call Second Quarter 2011 1 Q2 2011 Conference Call
Slide 2: Agenda
ITW Agenda 1. Introduction…………………...….. John Brooklier/David Speer 2. Financial Overview…………..….. Ron Kropp 3. Reporting Segments………....…. John Brooklier 4. 2011 Forecasts…..……….….…… Ron Kropp 5. Q & A………………......……...…... John Brooklier/Ron Kropp/David Speer 2 Q2 2011 Conference Call
Slide 3: Forward-Looking Statements
ITW Forward - Looking Statements This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding operating performance, revenue growth, diluted net income per share, restructuring
Slide 4: Conference Call Playback
Conference Call Playback Replay number: 402-220-9704 No pass code necessary Telephone replay available through midnight of August 9, 2011 Webcast / PowerPoint replay available at www.itw.com 4 Q2 2011 Conference Call
Slide 5: Quarterly Highlights
ITW Quarterly Highlights Q2 2011 Conference Call
Slide 6: Quarterly Operating Analysis
ITW Quarterly Operating Analysis 6 Q2 2011 Conference Call
Slide 7: Non Operating & Taxes
ITW Non Operating & Taxes 7 Q2 2011 Conference Call
Slide 8: Invested Capital
ITW Invested Capital 8 Q2 2011 Conference Call
Slide 9: Debt & Equity
ITW Debt & Equity 9 Q2 2011 Conference Call
Slide 10: Cash Flow
ITW Cash Flow 10 Q2 2011 Conference Call
Slide 11: Acquisitions
ITW Acquisitions 11 Q2 2011 Conference Call
Slide 12: Transportation Quarterly Analysis Q2 2011
Transportation Quarterly Analysis Q2 2011 Key Points (Q2’11 vs Q2’10) • Segment organic revenues: +7.4% • Auto OEM/Tiers: Worldwide base revenue growth of 7.5%; impacted modestly by Japan disaster – North American base revenues: +6.6% vs. 1% growth in North America auto builds – International base r
Slide 13: Industrial Packaging Quarterly Analysis Q2 2011
Industrial Packaging Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: +9.6% reflected solid industrial production activity worldwide – Total North American industrial packaging base revenues: +11.2% – Total international industrial packaging base revenues: +7.6% •
Slide 14: Power Systems and Electronics Quarterly Analysis Q2 2011
Power Systems and Electronics Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: +11.9% due to strong contributions from welding and PC board fabrication businesses • Worldwide welding base revenues: +18.2% – North America welding base revenues: +19.9% due to heavy e
Slide 15: Food Equipment Quarterly Analysis Q2 2011
Food Equipment Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: +1.9% as equipment sales moderated internationally • Total North America base revenues: +4.2% – Equipment base revenues: +6.2% – Service base revenues: +3.0% • International base revenues: -0.4% – Equi
Slide 16: Construction Products Quarterly Analysis Q2 2011
Construction Products Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: -2.2% as European growth moderates and North America remains weak • International construction base revenues: +2.1% – Europe base revenues: +6.1% – Asia Pacific base revenues: -2.8% • North Amer
Slide 17: Polymers and Fluids Quarterly Analysis Q2 2011
Polymers and Fluids Quarterly Analysis Q2 2011 Key Points (Q2’11 vs Q2’10) • Segment organic revenues: +1.5% reflected moderated industrial demand for polymer products in North American and international end markets; fluid demand stronger • Worldwide polymers: Flat • Worldwide fluids: +5.6% 17 Q2 20
Slide 18: Decorative Surfaces Quarterly Analysis Q2 2011
Decorative Surfaces Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: +6.5% • North America laminate base revenues: +4.9% due to ongoing product innovation and penetration in commercial construction • International base revenues: +8.3% due to increased activity in A
Slide 19: All Other Quarterly Analysis Q2 2011
All Other Quarterly Analysis Q2 2011 Key Points (Q2’11 vs. Q2’10) • Segment organic revenues: +8.1% • Worldwide test and measurement base revenues: +17.0% as equipment orders improved in Asia Pacific (China) and Europe • Worldwide consumer packaging base revenues: +5.7% due to strength in the decora
Slide 20: 2011 Forecast
ITW 2011 Forecast 20 Q2 2011 Conference Call
Slide 21: 2011 Forecast Key Assumptions
ITW 2011 Forecast Key Assumptions • Exchange rates hold at current levels • Acquired revenues in the $800 million to $1 billion range for the year • Restructuring costs of $40 to $50 million for the full year • Tax rate range of 28.5% to 29.5% for Q3 and full year (excludes the impact of the Q1 Aust
Slide 22: ITW Conference Call Q&A
ITW Conference Call Q&A Second Quarter 2011 22 Q2 2011 Conference Call