7/30/2014 2:21:00 AM
NEWS BRIEFS
ITW Automotive Fastener Revenue Sees Strong Gains
Illinois Tool Works Inc. reported total revenues grew 4% to $3.7 billion in the second quarter of 2014, with operating income increasing 21% to $677 million. Organic revenue gained 1.4%, with international revenue up 2% and North American sales improving 1%.
Operating margins of 20.5% increased 300 basis points, with enterprise initiatives contributing 120 basis points.
Automotive OEM organic revenue, including fasteners, grew 8% in Q1, outpacing worldwide auto builds of 2%. Segment organic revenues grew 8% in North America, 9% in Europe and 22% in China. Operating margins of 23.7% increased 310 basis points.
Construction Products’ revenues, including fasteners, declined 0.4% to $444 million. Segment operating income reached $81 million, with operating margin of 18.2%.
“ITW had a very good second quarter as our operating margins hit record levels, our EPS increased more than 30% and our after tax return on invested capital was near 20%,” said CEO Scott Santi.
ITW narrowed its full-year EPS guidance to a range of $4.50 to $4.62, with the $4.55 mid-point. Total revenue is expected to grow in the range of 3% to 4%. For the 2014 third quarter,ITW is forecasting EPS to be in a range of $1.19 to $1.27 and expects total revenue growth in a range of 3% to 4%. ©2014 GlobalFastenerNews.com
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