Fri, Aug 2, 10:08 AM (225 days ago)
Illinois Tool Works Inc. (ITW) reported its financial results for the quarter ending June 30, 2024. The company saw a slight decline in operating revenue to $4.03 billion, down 1.2% year-over-year, mainly due to unfavorable foreign currency translation and lower organic revenue. However, operating income rose by 4.5% to $1.05 billion, driven by the benefits from enterprise initiatives and favorable price/cost dynamics. The operating margin improved by 140 basis points to 26.2%. Net income for the quarter was $759 million, translating to a diluted EPS of $2.54, up from $2.48 in the prior year. ITW repurchased 1.6 million shares for $375 million during the quarter. The company maintained strong liquidity with $862 million in cash and equivalents and no outstanding borrowings under its $3.0 billion revolving credit facility. The effective tax rate increased to 24.4% from 21.4% in the previous year, partially due to lower discrete tax benefits. Overall, ITW demonstrated solid financial performance despite a challenging macroeconomic environment.