ITW’s Test & Measurement/Electronics Revenue Down Nearly 4%
GLENVIEW, IL – Illinois Tool Works reported revenue for the Test & Measurement/Electronics group was down 3.5% to $524 million in the first quarter. Operating income for the segment was $126 million, down 0.8% year-over-year.
ITW's Test & Measurement/Electronics group includes MPM, Kester, Electrovert, Vitronics and other leading brands.
Total first quarter revenue was $3.6 billion, down 5% year-over-year. Net income was $597 million, down 8.4% compared to the same quarter in 2018. Operating income was $839 million, a decrease of 7%.
During the quarter, total free cash flow increased 21% to $539 million.
“ITW had a solid start to 2019. We expanded operating margin to 24.3%, excluding the impact from accelerated restructuring, as enterprise initiatives contributed 100 basis points and price/cost was more favorable than expected,” said chairman and CEO E. Scott Santi. “We grew free cash flow 21%, with conversion of 90%, well above our seasonal average. After a slow start in January, sales trends improved across the board as the quarter progressed. Looking ahead, our view that continued contributions from enterprise initiatives, improving price/cost dynamics, restructuring benefits, more favorable sales and foreign currency comparisons, and stabilizing auto production in Europe and China will all contribute to a stronger operating environment in the back half of the year is unchanged. As a result, we remain firmly on track to deliver on our full year EPS guidance.”
