10/21/2015 11:46:00 AM
NEWS BRIEFS
ITW Automotive & Construction Sales Decline
Illinois Tool Works Inc. reported third quarter revenue declined 9% to $3.35 billion. Organic revenue fell 1.7% as continued solid organic growth performance in Automotive OEM, Food Equipment and Construction Products was offset by deteriorating end market trends in Welding and Test & Measurement and Electronics.
Q3 operating income dipped 1.4% to $761 million, while net income dropped 3.8% to $511 million. EPS gained 9% to $1.39. Operating margin increased 180 basis points to a record of 22.7%.
Automotive OEM revenue, including fasteners, fell 3% to $612 million, which included 5.2% organic revenue growth, outpacing flat worldwide auto builds. Automotive OEM organic revenue increased 12% in Europe, 5% in North America and declined 5% in China. Operating income was $156 million, and operating margin of 25.4% was up 200 basis points.
Third-quarter Construction Products revenue, including fasteners, declined 8.1% to $409 million, which included organic revenue gains of 4% driven by 7% growth in North America and 5% growth in Asia Pacific. Operating income totaled $94 million, and operating margin was up 420 basis points to a record 23.1%.
Automotive OEM revenue in the first nine months of 2015 declined 2.8% to $1.91 billion, which included organic revenue growth of 6%. Operating income reached $478 million, with an operating margin of 25%.
Nine-month Construction Products revenue fell 7.4% to $1.21 billion, with operating income totaling $241 million and operating margin of 19.9%.
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Related Links:
• ITW
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