Illinois Tool Works Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter and Reaffirms Earnings Guidance for the Full Year 2017
January 25, 2017 at 06:30 pm IST
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Illinois Tool Works Inc. reported unaudited earnings results for the fourth quarter and full year ended December 31, 2016. For the fourth quarter, the company reported operating revenues of $3,399 million compared to $3,275 million a year ago. Operating income was $742 million compared to $679 million a year ago. Income before income taxes were $726 million compared to $634 million a year ago. Net income was $507 million or $1.45 per diluted share compared to $450 million or $1.23 per diluted share a year ago. Net cash provided by operating activities were $664 million compared to $703 million a year ago. Adjusted net income per diluted share was $1.39.
For the full year 2017, the company reported operating revenues of $13,599 million compared to $13,405 million a year ago. Operating income was $3,064 million compared to $2,867 million a year ago. Income before income taxes were $2,908 million compared to $2,719 million a year ago. Net income was $2,035 million or $5.70 per diluted share compared to $1,899 million or $5.13 per diluted share a year ago. Net cash provided by operating activities were $2,302 million compared to $2,299 million a year ago. Adjusted operating income after taxes was $2,003 million compared to $2,022 million a year ago. Free cash flow was $593 million was 117% of net income.
The company reaffirmed its 2017 full-year performance expectations. The company expects 2017 earnings to be in the range of $6.00 to $6.20 per share with organic growth of 1.5 to 3.5%. The company also expects operating margin to exceed 23.5% and free cash flow conversion to exceed 100% for the full-year.
The company expects first quarter 2017 earnings to be in the range of $1.39 to $1.49 per share with organic growth of 1 to 2%. The company expects operating margin to exceed 22.5%.
Illinois Tool Works Inc. is a diversified industrial group organized around 7 families of products:
- automotive equipment (20.1% of net sales). Besides, the group proposes products for maintenance and refurbishment (coatings, sealants, shutters, etc.);
- electronic equipment (17.5%): primarily equipment of microelectronic assembly. The group also provides test and measurement equipment and software;
- equipment for industrial kitchens (16.3%): cookers, dishwasher, ovens, refrigerators, cupboards, systems of aeration, etc.;
- construction systems and materials (12.6%): powder and gas nailing, perforators and consumables (fuses, chisels, pads, plugs, etc.) intended for applications on wood, steel and concrete;
- polymers, coatings, resins, adhesives and lubricants (11.2%);
- metallurgical equipment (10.5%): arc welding equipment, blowtorches, welding accessories, etc.
- specialty products (11.3%): industrial packaging systems and materials, products coding and marking equipment, etc.
Net sales are distributed geographically as follows: the United States (47.1%), North America (6.9%), Europe/Middle East/Africa (25.8%), Asia/Pacific (18.3%) and South America (1.9%).
Illinois Tool Works Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter and Reaffirms Earnings Guidance for the Full Year 2017