Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q1 2010 Earnings Presentation
30 slides from Illinois Tool Works's earnings presentation, Apr 20, 2010
Slide 1: ITW Conference Call First Quarter
ITW Conference Call First Quarter Exhibit 99.2
Slide 2: Agenda
ITW Agenda 1. Introduction…………………...….. John Brooklier/David Speer 2. Financial Overview…………..….. Ron Kropp 3. Reporting Segments………....…. John Brooklier 4. 2010 Forecasts…………………… Ron Kropp 5. Q & A………………......……...…... John Brooklier/Ron Kropp/David Speer
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 income per share from continuing ope
Slide 4: Conference Call Playback
Conference Call Playback Replay number: 203-369-3795 No pass code necessary Telephone replay available through midnight of May 4, 2010 Webcast / PowerPoint replay available at itw.com website
Slide 5: Operating Revenues
Operating Revenues Operating Income % of Revenues Income from Continuing Operations Income (Loss) Amount Income (Loss) Per Share-Diluted Net Income Income (Loss) Amount Income (Loss) Per Share-Diluted Free Operating Cash Flow F(U) Last Year 2009 2010 Qi Qi Amount 3,146.4 3,606.4 460.0 91.3 483.9 392
Slide 6: Quarterly Operating Analysis
ITW Quarterly Operating Analysis
Slide 7: Operating Income
Operating Income Interest Expense Other Income (expense) Income from Continuing Operations-Pretax Income Taxes % to Pretax Income Income (Loss) from Continuing Operations Income (Loss) from Discontinued Operations Net Income (Loss) 2009 2010 F(U) Last Year at at Amount % 91.3 483.9 392.6 430.1% (31.
Slide 8: Trade Receivables
Trade Receivables Days Sales Outstanding Inventories Months on Hand Prepaids and Other Current Assets Accounts Payable & Accrued Expenses Operating Working Capital % to Revenue(Prior 4 Qtrs.) Net Plant & Equipment Investments Goodwill and Intangibles Other, net Invested Capital ROIC - excluding disc
Slide 9: Total Capital
Total Capital Short Term Debt Long Term Debt Total Debt Stockholders’ Equity Total Capital Less: Cash Net Debt & Equity Debt to Total Capital Shares outstanding at end of period 3/34/09 12/31/09 3/34/40 1,131.2 213.7 324.4 2,744.4 2,914.9 2,807.2 3,875.6 3,128.6 3,131.6 7,373.7 8,817.9 __8,743.0 1,2
Slide 10: Net Income (Loss) and cash flow
Net Income (Loss) Adjust for Non-Cash Items Changes in Operating Assets & Liabi Net Cash From Operating Activities Additions to Plant & Equipment Free Operating Cash Flow Acquisitions Payments related to Divestitures Dividends Proceeds from Debt Proceeds from Investments Other Net Cash Increase 2009
Slide 11: Annual Revenues Acquired
Annual Revenues Acquired Purchase Price Cash Paid Number of Acquisitions 2009 2010 Qi a2 G3 4 at 75 546155 26 6 33 863185 25 6 5 2 OF 4
Slide 12: Transportation Quarterly Analysis
Transportation Quarterly Analysis
Slide 13: Transportation Key Points
Transportation Key Points • Total segment base revenues: +32.0% in Q1 ’10 as auto builds significantly ramped up in North America and Europe versus Q1 ’09 • Auto OEM/Tiers: Worldwide base revenues +39.1% in Q1 ’10 vs. Q1 ’09 – North American Q1 ’10 auto builds: 2.9 million vehicles vs. 1.7 million v
Slide 14: Industrial Packaging Quarterly Analysis
Industrial Packaging Quarterly Analysis
Slide 15: Industrial Packaging Key Points
Industrial Packaging Key Points • Total segment base revenues continued to show signs of improvement: +10.9% in Q1 ’10 vs. Q1 ’09 as industrial production metrics in U.S. trend positive • Total North American industrial packaging base revenues: +19.8% in Q1 ’10 vs. Q1 ’09 – End markets associated wi
Slide 16: Food Equipment Quarterly Analysis
Food Equipment Quarterly Analysis
Slide 17: Food Equipment Key Points
Food Equipment Key Points • Total segment Q1 ’10 base revenues: -5.2% vs. Q1 ’09 • North America Q1 ’10 base revenues: -2.7% vs. Q1 ’09 as customers continue to delay equipment purchases – Project side of business slower; replacement side of business stronger • North America Q1 ’10 service base reve
Slide 18: Power Systems and Electronics Quarterly Analysis
Power Systems and Electronics Quarterly Analysis
Slide 19: Power Systems and Electronics Key Points
Power Systems and Electronics Key Points • Total Q1 ’10 segment base revenues: +10.7% vs. Q1 ’09 • Q1 ’10 PC board fabrication base revenues significantly improved: +89.4% vs. Q1 ’09 as consumer electronics demand continues to be very strong • In Q1 ’10, worldwide welding base revenues: -1.4% vs. Q1
Slide 20: Construction Products Quarterly Analysis
Construction Products Quarterly Analysis
Slide 21: Construction Products Key Points
Construction Products Key Points • Total segment base revenues: +0.5% in Q1 ’10 vs. Q1 ’09 • North America Q1 ’10 base revenues: -2.0% vs. Q1 ‘09 – Q1 ’10 residential base revenues: +7.6% vs. Q1 ’09; Q1 new housing starts at 617,000 units – Q1 ’10 renovation base revenues: -6.0% vs. Q1 ’09 – Q1 ’10
Slide 22: Polymers and Fluids Quarterly Analysis
Polymers and Fluids Quarterly Analysis
Slide 23: Polymers and Fluids Key Points
Polymers and Fluids Key Points • Total Q1 ’10 segment base revenues: +7.6% vs. Q1 ’09 • Q1 ’10 base revenues for worldwide fluids: +13.9% vs. Q1 ’09 – International base revenues increased 15.1% in Q1 ’10; North America base revenues grew 11.5% • Q1 ’10 base revenues for worldwide polymers: +4.7% vs
Slide 24: Decorative Surfaces Quarterly Analysis
Decorative Surfaces Quarterly Analysis
Slide 25: Decorative Surfaces Key Points
Decorative Surfaces Key Points • Total Q1 ’10 segment base revenues: -2.6% vs. Q1 ’09 • North America laminate Q1 ’10 base revenues: -2.6% vs. Q1 ’09 – Due to North American commercial construction mix, demand for high pressure laminate remained constrained • International Q1 ’10 base revenues: -2.5
Slide 26: All Other Quarterly Analysis
All Other Quarterly Analysis
Slide 27: All Other Key Points
All Other Key Points • Total Q1 ’10 segment base revenues: +2.6% vs. Q1 ’09 – Q1 ’10 industrial/appliance base revenues: +12.9% vs. Q1 ’09; improvement still related to energy efficiency initiatives in appliance sector – Q1 ’10 worldwide consumer packaging base revenues: +4.2% vs. Q1 ’09 – Q1 ’10 wo
Slide 28: 2nd Quarter and Full Year 2010 Forecast
2nd Quarter 2010 Total Revenues Diluted Income per Share - Continuing % F(U) 2nd Quarter 2009 Full Year 2010 Total Revenues Diluted Income per Share - Continuing % F(U) 2009 Low 15% $0.74 106% 10% $2.72 41% High 19% $0.86 139% 14% $3.08 60% Mid Point 17% $0.80 122% 12% $2.90 50%
Slide 29: ITW 2010 Forecast Key Assumptions
ITW 2010 Forecast Key Assumptions • Exchange rates hold at current levels • Acquired revenues in the $300 to $500 million range for the year • Restructuring costs of $50 to $80 million for the full year • Tax rate range of 28.75% to 29.25% for the 2nd quarter and a range of 29.75% to 30.25% for the
Slide 30: ITW Conference Call Q & A
ITW Conference Call Q & A First Quarter