Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q2 2021 Earnings Presentation
10 slides from Illinois Tool Works's earnings presentation, Jul 30, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
SECOND QUARTER 2021 EARNINGS CONFERENCE CALL JULY 30, 2021
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 dur
Slide 3: Q2'21 Financial Performance
Q2'21 FINANCIAL PERFORMANCE COMMENTARY GAAP EPS $1.01 $2.45 +143% • Continued improvement in both the breadth and pace of recovery +43% - Organic growth of 37% $3.7B - Segment level organic growth ranging from 17% to 84% - Order intake rates strong through the quarter REVENUE $2.6B • Executing well
Slide 4: Price/Cost Update
P R I C E / C O S T U P D AT E • Full year raw material cost inflation currently projects to ~7% which is ~3x our assumption going into the year and 2x the rate of inflation we experienced in the ’18 inflationary/tariff cycle. • Our pace of price recovery is well ahead of the last cycle. • All known
Slide 5: Q2'21 Segment Performance
Q2'21 SEGMENT PERFORMANCE STRONG SEQUENTIAL REVENUE GROWTH AUTOMOTIVE OEM Q1’21 Q2’21 Seq’l % Automotive OEM $783 $707 (10)% +95% +2660 bps $707 18.8% Food Equipment $451 $514 +14% $361 T&M / Electronics $552 $606 +10% (7.8)% Welding $401 $402 Flat Q2'20 Q2'21 Q2'20 Q2'21 Polymers & Fluids $435 $466
Slide 6: Q2'21 Segment Performance: Food Equipment, Test & Measurement/Electronics
Q2'21 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +53% +1280 bps +33% 28.1% +240 bps $606 25.7% $514 $455 22.0% $336 9.2% Q2'20 Q2'21 Q2'20 Q2'21 Q2’20 Q2’21 Q2’20 Q2’21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 46% • Organic revenue 29% •
Slide 7: Q2'21 Segment Performance: Welding, Polymers & Fluids
Q2'21 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS +35% 28.5% +690 bps +32% +420 bps 27.3% 23.1% 21.6% $466 $402 $354 $298 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 33% • Organic revenue 28% • Equipment 38%, Consu
Slide 8: Q2'21 Segment Performance: Construction Products, Specialty Products
Q2'21 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS +38% +390 bps +22% +180 bps 27.6% 27.2% 25.4% $518 23.7% $471 $376 $387 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 28% • Organic revenue 17% • North
Slide 9: 2021 ITW Financial Guidance
2021 ITW FINANCIAL GUIDANCE Excludes previously announced acquisition of MTS Test & Simulation business COMMENTARY • Order intake rates in all segments & geographies remain GAAP EPS $6.63 $8.55 to $8.95 +29-35% strong. Raising organic growth guidance to 11% to 13%. +14-16% - Foreign currency transla
Slide 10: Q&A
Q&A 10