ITW reported Automotive OEM revenue, including fasteners, fell 54% to $361 million in the second quarter of 2020.   Automotive OEM operating loss totaled $28 million, while operating margin plummeted to -7.8%.

“As expected, given that most of our automotive OEM customers in North America and Western Europe essentially shutdown in mid-March and only began to restart production in May, June,” stated CEO Scott Santi in a conference call transcribed by Seeking Alpha.  “Our automotive OEM business was the hardest hit.

“Overall organic revenues were down 53% year-over-year, although we did see a significant uptick in June that is continuing in July.  North America was down 62%, Europe down 59% and China was the bright spot with organic revenue up 6%.”

Construction Products revenue, including fasteners, performed comparatively well, dropping only 11.3% to $376 million during the quarter.  Segment operating income decreased 15% to $90 million, with operating margin rising to 23.7%.

Overall Q2 ITW revenue dropped 29% to $2.6 billion, with organic revenue down 27% and operating margin falling at 17.5%.

Six-month Automotive OEM revenue faired better, falling 32% to $1.06 billion, with operating income down 33.7% to $117 million and operating margin plummeting 1030 basis points to 11.1%.

Construction Products during the first six months of 2020 dipped 4.6% to $766 million, while segment operating income slipped 7.1% to $181 million, producing an operating margin increase of 20 basis points to 23.6%.

Consolidated ITW revenue declined 19% to $5.8 billion, while operating income fell 29% to $1.,21 billion and net income slipped 27% to $885 million.  Web: ITW.com