9/10/2010 11:23:00 AM
NEWS BRIEFS
ITW Sheds Non-Core Business To Sharpen Focus on Fasteners & Other Products
ITW is divesting non-core assets to focus on expanding such core businesses as California Industrial Products and other fastener assets
Illinois Tool Works Inc. disposed of a non-core subsidiary to focus on ITW’s longterm growth platform in fasteners, industrial packaging and other sectors.
ITW sold Meyercord Revenue Inc. to SICPA Product Security LLC for an undisclosed amount. Acquired in the late 1990s, Meyercord Revenue produced tobacco tax stamps for U.S. states and municipalities, with $30 million in annual sales.
ITW said divesting non-core businesses will help it expand into industrial sectors by focus on simplifying its manufacturing processes to reducing the number of parts in an assembly or improving quality.
“We believe that the company’s growth stems from its ability to develop new and improved products as well as broadening the range of application of established products,” Zach’s Equity Research reports. “Developing new methods, processes and equipment along with acquisitions give the company a big push.”
Illinois Tool Works Inc. reported sales in its Transportation segment, including fasteners, jumped 29% in the three-month period ended July 31.
Construction segment sales, including fasteners, also grew, increasing 16% during the period.
Overall ITW revenue improved 16%, including a 13% boost in organic sales.
Glenview, IL-based ITW is a multinational manufacturer consisting of 840 business units in 57 countries and 59,000 employees. The company reported $13.9 billion in 2009. Web: itw.com ©2010 GlobalFastenerNews.com
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• ITW
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