Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q1 2019 Earnings Presentation
10 slides from Illinois Tool Works's earnings presentation, Apr 25, 2019
Slide 1: First Quarter 2019 Earnings Conference Call
FIRST Q UARTER 2019 EAR NIN GS CON FE RE NCE CALL April 25, 2019
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 conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the expected impact of tariffs and raw material in
Slide 3: Q1 2019 Financial Performance Highlights
Q1 2019 FINANCIAL PERFORMANCE HIGHLIGHTS GAAP EPS $1.90 $1.81 • GAAP EPS of $1.81 vs. guidance of $1.73 to $1.83 - EPS includes $0.16 headwinds: $0.07 FX, $0.06 restructuring cost, $0.03 tax rate • Organic revenue down 1.5%; Flat on an equal days basis - Sales trends improving after slow start in Ja
Slide 4: Q1 2019 Operating Margin: Key Margin Drivers
Q 1 2 0 1 9 O P E R AT I N G M A R G I N KEY MARGIN DRIVERS +20 bps Q1'19 ex. restructuring 24.3% Enterprise Initiatives +100 bps 24.1% restructuring 23.6% Volume (30) Price/Cost (10) Other (40) Q1'18 Q1'19 Margin Expansion +20 bps Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Accelerated Restructuring (70) Price/C
Slide 5: Q1 2019 Segment Performance: Organic Revenue by Segment, Automotive OEM
Q1 2019 SEGMENT PERFORMANCE ORGANIC REVENUE BY SEGMENT AUTOMOTIVE OEM (160) bps (11)% ex. restructuring Organic Equal Days Basis $901 24.1% $806 22.5% Growth WW NA Int’l restructuring Automotive OEM (6)% (5)% (5)% (5)% 20.6% Food Equipment 2 3 3 4 Q1'18 Q1'19 Q1'18 Q1'19 T&M / Electronics (1) 1 2 ~f
Slide 6: Q1 2019 Segment Performance: Food Equipment, Test & Measurement/Electronics
Q1 2019 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS (2)% +30 bps (4)% +70 bps $527 $518 24.6% 24.9% $543 $524 24.1% 23.4% Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Total Revenue Operating Margin Total Revenue Operating Margin • Organic growth of 2% … Equal days basis 3% •
Slide 7: Q1 2019 Segment Performance: Welding, Polymers & Fluids
Q1 2019 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS +1% +40 bps (6)% +40 bps $423 $427 27.7% 28.1% $442 21.3% $416 20.9% Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Total Revenue Operating Margin Total Revenue Operating Margin • Organic growth of 3% … Equal days basis 5% • Organic revenue (1)%
Slide 8: Q1 2019 Segment Performance: Construction Products, Specialty Products
Q1 2019 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS (6)% (50) bps (4)% (20) bps $428 $401 $485 $465 26.7% 26.5% 22.2% 21.7% Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (1)% … Equal days basis flat •
Slide 9: 2019 Full Year Guidance
2019 FULL YEAR GUIDANCE HIGHLIGHTS +4-8% • Favorable EPS trends in 2H’19 vs. 1H’19 GAAP EPS $7.60 $7.90 - $8.20 - FX, restructuring and tax rate headwinds improving $0.15-0.20 in 2H’19 vs. 1H’19 • Organic revenue growth 0.5 to 2.5% $14.8B $14.5 to - Based on current levels of demand $14.8B REVENUE -
Slide 10: Q&A
Q&A 10