ITW Sales & Profit Strong

Jason Sandefur

Strong North American sales helped Illinois Tool Works post a 10% gain in sales to $2.71 billion during the first quarter of 2004. Q1 net income jumped 48.5% to $290.2 million.
Operating income for North American Engineered Product, including fasteners, improved 19% on �substantial� increases in industrial and construction business activity. Segment sales rose 6%.
Sales for International Engineered Products grew 28%, while operating income gained 51%, largely due to the impact of a weak U.S. dollar.

Based on its performance, Glenview, IL-based ITW increased its full-year earnings outlook and announced its first-ever share buyback. The company�s board authorized the repurchase of about 21 million shares over the next year, using ITW�s cash reserves of $1.7 billion.
�We view ITW�s first-ever stock repurchase program as an attractive way to return a significant amount of our cash to shareholders,� CEO James Farrell stated.

During Q1, ITW completed 10 acquisitions, representing $250 million of acquired annual revenues. Web: itw.com �2004 FastenerNews.com