Illinois Tool Works Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter and Full-Year of 2015
January 27, 2015 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, 2014. For the fourth quarter, the company reported operating revenues of $3,504 million compared to $3,554 million a year ago. Operating income was $686 million compared to $628 million a year ago. Income from continuing operations before income taxes were $657 million compared to $573 million a year ago. Income from continuing operations were $461 million or $1.18 per diluted share compared to $407 million or $0.92 per diluted share a year ago. Net income was $450 million or $1.16 per diluted share compared to $408 million or $0.93 per diluted share a year ago. Net cash provided by operating activities were $458 million compared to $708 million a year ago. Adjusted net income was $450 million. Free operating cash flow for the quarter was $369 million compared to $597 million a year ago.
For the full year, the company reported operating revenues of $14,484 million compared to $14,135 million a year ago. Operating income was $2,888 million compared to $2,514 million a year ago. Income from continuing operations before income taxes were $2,699 million compared to $2,347 million a year ago. Income from continuing operations were $1,890 million or $4.67 per diluted share compared to $1,630 million or $3.63 per diluted share a year ago. Net income was $2,946 million or $7.28 per diluted share compared to $1,679 million or $3.74 per diluted share a year ago. Net cash provided by operating activities were $1,616 million compared to $2,528 million a year ago. Adjusted net income was $1,798 million. Free operating cash flow for the quarter was $1,255 million compared to $2,160 million a year ago.
The company confirmed its 2015 full-year EPS guidance range of $5.15 to $5.35, which is $5.25 at the midpoint, a 12% increase. Organic revenue growth for the year is expected to be 2.5 to 3.5%. Total revenue for the year is projected to decline 1 to 2% due to the impact of foreign currency translation.
For the first quarter 2015, the company is forecasted EPS to be in a range of $1.13 to $1.21, which is $1.17 at the midpoint, a 16% increase. In the first quarter, the Company expects 2 to 3% organic revenue growth and total revenue to decline 2 to 3% due to the impact of currency translation.
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, 2014; Provides Earnings Guidance for the First Quarter and Full-Year of 2015