Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q3 2023 Earnings Presentation
9 slides from Illinois Tool Works's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
Third Quarter 2023 October 24, 2023 Earnings Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 global supply chain chal
Slide 3: Q3'23 Financial Performance
Q3’23 Financial Performance HIGHLIGHTS GAAP EPS $2.35 $2.55 +9% • Organic revenue growth of +2% on an equal days’ basis - Foreign exchange translation impact of +1.5% $4.01B $4.03B +0.5% - Divestiture impact (1.2)% • Strong margin and income performance +0.2% REVENUE Organic - Operating margins up 2
Slide 4: Q3'23 Segment Performance: Automotive OEM
Q3’23 Segment Performance ORGANIC GROWTH BY GEOGRAPHY AUTOMOTIVE OEM +6% +15% $799M $753M +140 bps +8% 18.9% 17.5% +6% North +0.4% America (1.6)% EMEA APAC China South Q3'22 Q3'23 Q3'22 Q3'23 America Total Revenue Operating Margin • Total ITW organic growth of 0.2%; +2% on an • Organic revenue 4% eq
Slide 5: Q3'23 Segment Performance: Food Equipment, Test & Measurement/Electronics
Q3’23 Segment Performance FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +7% $715M (2)% $678M +100 bps $698M $633M 27.3% 26.3% 25.2% (140) bps 23.8% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 6% • Organic revenue (4)
Slide 6: Q3'23 Segment Performance: Welding, Polymers & Fluids
Q3’23 Segment Performance WELDING POLYMERS & FLUIDS +10 bps 31.5% 31.6% $477M (2)% (3)% +280 bps $468M $473M $458M 28.1% 25.3% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (2)% • Organic revenue 3%; divestiture impact
Slide 7: Q3'23 Segment Performance: Construction and Specialty Products
Q3’23 Segment Performance CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS +420 bps $527M (1)% 29.9% $522M +10 bps $438M (6)% 27.8% $414M 27.7% 25.7% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (2)% • Organic revenue (6)%, d
Slide 8: 2023 Financial Guidance
2023 Financial Guidance HIGHLIGHTS GAAP EPS $9.77 $9.65 - $9.85 -Ex. ’22 Divestiture gains $9.17 +5 – 7% • Narrowed GAAP EPS guidance range from $9.55 to $9.95 - Includes $(0.12) for estimated Auto strike impact in Q4 +1 - 2% $16 - $16.2B $15.9B • Projecting organic growth of 2 to 3% +2 - 3% Organic
Slide 9: Q&A
Q&A