Jason Sandefur

Illinois Tool Works kept up its double-digit growth in 2005, with revenue rise 10% to a record $12.92 billion and net income increasing 11.7% to $1.49 billion.
ITW said total company base business revenue increase in 2005 was primarily related to a 5.8% increase in North American base business revenue. Sales to customers in North America rose 9.5% to $7.23 billion, representing about 56% of overall revenue.
“The growth in North American revenues was primarily due to price increases implemented to offset raw material cost increases, modest growth in industrial production and increased demand in certain capital equipment markets,” the company stated.
North American fastener sales slowed a bit from their 2004 pace, growing 5% to $2.7 billion. International fastener sales gained 4.2% to $2.16 billion.
North American engineered products revenue gained 11.5% to $3.76 billion, while operating income improved 15% to $659.2 million. Automotive product sales comprised 28% of overall segment revenue.
International engineered products revenue rose 9.5% to $2.73 billion, and operating income increased 8.3% to $403.5 million.
ITW recorded 22 acquisitions in 2005. The company increased its R&D spending by 3.5% to $127.8 million, while trimming its advertising budget to $80 million.
Board chairman and former CEO James Farrell officially retired in May 2006, making room for CEO David Speer to replace him as chairman. Farrell had been with ITW for 41 years. He started with ITW in 1967 as a Shakeproof salesman and was promoted to management roles with Deltar. From 1977 to 1983 he was president of the Fastener & Tool Group. In 1983 Farrell became executive vice president, in 1995 he was president and in 1996 chairman and CEO.
Speer was named top executive in 2005 as part of ITW”s senior management transition plan first announced in 2004 when Speer became president of ITW. Speer has been with ITW for 28 years.
ITW is a diversified manufacturer of highly engineered components and industrial systems. The company consists of 700 operations in 48 countries, including 147 in North America and more than 100 in Australia, Austria, Belgium, Canada, China, Denmark, France, Germany, Ireland, Italy, Malaysia, the Netherlands, Spain, Switzerland and the UK.
Founded in 1912, ITW first manufactured cutting tools at a small plant in Chicago. ITW entered the fastener business in 1923 using a patent on a twisted-tooth lockwasher to start Shakeproof Company in 1923, when Detroit was converting from wood to metal auto door hinges. Fastener involvement expanded with the concept of “preasSEMbling” a washer to a screw. In the early 1950s the Fastex division was formed to produce special stampings and plastic fasteners.
Today ITW manufactures highly engineered fasteners and industrial components and specialty products primarily for the auto, food and construction industries. Brand names include Buildex, Fastex, Ramset/Red Head and Shakeproof.
Fasteners contribute about 38% of overall sales.
Headquarters: 3600 W. Lake Ave., Glenview, IL 60025-5811. Tel: 847 724-7500 Fax 847 657-4392
Web: itw.com
NYSE Symbol: ITW
CEO: David Speer
Investor Relations: Jon Kinney
Founded: 1912Employees: 50,000
\ �2006 FastenerNews.com