Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q1 2018 Earnings Presentation
10 slides from Illinois Tool Works's earnings presentation, Apr 26, 2018
Slide 1: First Quarter 2018 Earnings Conference Call
First Quarter 2018 Earnings Conference Call April 26, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements NON-GAAP MEASURES The company uses certain non-GAAP measures in discussing the company’s performance. The reconciliation of those measures to the most comparable GAAP measures is detailed in ITW’s press release for the first quarter of 2018, which is available at www.itw.c
Slide 3: Q1 2018 Financial Performance
Q1 2018 Financial Performance Financial Results Highlights +23% ▪ GAAP EPS of $1.90, an increase of 23% $1.54 $1.90 ▪ Solid demand trends; Revenue grew 8%; organic growth of 3% EPS – All 7 segments and major geographies with positive organic growth ▪ Delivered first quarter records for key performan
Slide 4: Operating Margin
Q1 2018 Operating Margin Operating Margin Key Margin Drivers Q1'18 +90 bps Enterprise Initiatives +110 bps 24.1% 23.2% Volume/Other +30 Price/Cost (50) Margin Expansion +90 bps Q1'17 Q1'18 STRONG OPERATING MARGIN PERFORMANCE Q1'18 EARNINGS CALL | 4
Slide 5: Organic Revenue Performance and Automotive OEM
Q1 2018 Segment Performance Organic Revenue Performance Automotive OEM Organic Revenue +9% (30) bps $901 FY'17 Q1'18 FY’18E 24.4% 24.1% $828 Automotive OEM 4% 1% 4 – 5% Food Equipment 1 ~flat 2 – 3% Q1'17 Q1'18 Q1'17 Q1'18 T&M and Electronics 5 8 4 – 5% Total Revenue Operating Margin Welding 3 8 5 –
Slide 6: Food Equipment and Test & Measurement/Electronics
Q1 2018 Segment Performance Food Equipment Test & Measurement/Electronics +6% (50) bps $543 +13% +340 bps $527 25.1% 24.6% 23.4% $497 20.0% $480 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Total Revenue Operating Margin Total Revenue Operating Margin Q1 Performance Q1 Performance ▪ Organic growt
Slide 7: Welding and Polymers & Fluids
Q1 2018 Segment Performance Welding Polymers & Fluids +9% 27.7% 27.7% Flat +4% +30 bps $442 20.6% 20.9% $423 $426 $387 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Total Revenue Operating Margin Total Revenue Operating Margin Q1 Performance Q1 Performance ▪ Organic growth of 8% ▪ Organic growth ~
Slide 8: Construction Products and Specialty Products
Q1 2018 Segment Performance Construction Products Specialty Products +8% (30) bps +5% (20) bps 22.5% 22.2% 26.9% 26.7% $485 $428 $463 $395 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Total Revenue Operating Margin Total Revenue Operating Margin Q1 Performance Q1 Performance ▪ Organic growth of 3
Slide 9: 2018 Guidance
2018 Guidance Financial Guidance Highlights +17% ▪ Solid underlying demand trends, resilient business portfolio $7.60 - $7.80 − Total revenue growth of 5 - 6%; organic growth of 3 - 4% EPS $6.59* ▪ Strong execution and margin expansion $15.0 - − 100 bps from Enterprise Initiatives; manageable price/
Slide 10: Q&A
THY Q&A