Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q3 2022 Earnings Presentation
9 slides from Illinois Tool Works's earnings presentation, Oct 25, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
THIRD QUARTER 2022 EARNINGS CONFERENCE CALL OCTOBER 25, 2022
Slide 2: Forward-Looking Statements / Safe Harbor Statement
F O RWA R D - L O O K I N G S TAT E M E N T S 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 d
Slide 3: Q3'22 Financial Performance Highlights
Q3'22 FINANCIAL PERFORMANCE HIGHLIGHTS GAAP EPS $2.02 $2.35 +16% • ITW delivered strong Q3 performance $4.0B +13% - Organic growth of 16%, double-digit growth in 5 segments $3.6B - EPS growth of 16% despite $(0.13) of FX headwind +16% Organic • Continue to aggressively execute ITW’s “Win the Recover
Slide 4: Q3'22 Segment Performance
Q3'22 SEGMENT PERFORMANCE ORGANIC GROWTH BY GEOGRAPHY AUTOMOTIVE OEM 16% 17% 14% 15% 15% $753M +16% $647M 17.3% 17.5% +20 bps ITW NA EMEA APAC CHINA Q3'21 Q3'22 Q3'21 Q3'22 PRICE/COST MARGIN DILUTION IMPACT Total Revenue Operating Margin (250) bps • Organic revenue 25% (200) bps (200) bps • North Am
Slide 5: Q3'22 Segment Performance
Q3'22 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS $715M +29% 28.9% +210 bps $633M +16% 26.3% +240 bps $544M MTS 26.8% (370) bps MTS Acquisition $552M 23.9% 25.2% $614M Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Total Revenue Operating Margin Total Revenue Operating Margin
Slide 6: Q3'22 Segment Performance
Q3'22 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS 31.5% +150 bps +12% 30.0% $473M +4% 25.3% +110 bps $477M $456M $425M 24.2% Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 14% • Organic revenue 8% • Equipment 13%, Con
Slide 7: Q3'22 Segment Performance
Q3'22 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS $527M +10% 27.8% 27.7% +40 bps $478M $459M 27.3% 25.7% (210) bps $438M (5)% Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 17% • Organic revenue ~flat,
Slide 8: 2022 Financial Guidance Highlights
2022 FINANCIAL GUIDANCE HIGHLIGHTS GAAP EPS $8.51 $9.45 - $9.55 +11 - 12% • Raising 2022 organic growth projection to 11 to 12% as demand remains strong across majority of our businesses $15.8 - $16.0B +9 - 10% - Based on 12% year-to-date, current levels of demand, and $14.5B anticipated further slo
Slide 9: Q&A
Q&A 9