7/22/2009
NEWS BRIEFS
ITW Transportation Fastener Sales Decline Slows

Illinois Tool Works reported sales in its Transportation segment, including automotive fasteners, declined 20% to $502.3 million during the second quarter of 2009, while segment operating income slipped 75% to $24.3 million.

Total segment base revenues were “significantly better” quarter to quarter, down only 23.7% during Q2 compared to a 35.5% decline the previous quarter.

International auto base revenues eased to a loss of 22.5% compared to a 44% drop in Q1 as European auto builds grew 36% to 4.1 million units. ITW said the improvement was “in part due to the ‘cash for clunkers’ auto incentive program.”

North American auto revenue finished with a 39.5% decline in Q2 compared to a 46.6% decline the previous quarter.

Construction Products sales, including fasteners, dropped 34% to $370.7 million during Q2, while segment operating income fell 72% to $21.7 million.

Overall ITW revenue dipped 25.5% to $3.93 billion, benefiting from “aggressive and targeted restructuring programs” that cost the company $65 million in Q2. Operating income dropped 55% to 334.8 million, with net income declined 66% to $176.5 million.

During the first six months of 2009 revenue fell 24% to $6.54 billion, with operating income down 69% to $426.1 million. ©2009 GlobalFastenerNews.com

Related Links:

• ITW