ITW Reports Q1 Electronics Revenue Down 7%
GLENVIEW, IL – Illinois Tool Works reported first quarter test and measurement and electronics revenue of $485 million, down 7.4% year-over-year.
Operating income for the segment was $121 million, a decrease of 4% compared to the first quarter of 2019.
Total ITW first quarter revenue was $3.2 billion, down 9.1% year-over-year, with organic revenue down 6.6%. Foreign currency translation and divestitures reduced revenues 1.5% and 1%, respectively.
Total net income was $566 million, down 5.2% year-over-year. Operating income was $761 million, a decrease of 9.3%.
Free cash flow was $554 million, with a 98% conversion rate, and after-tax return on invested capital was 27%.
ITW has approximately $1.4 billion in cash and cash equivalents on hand, essentially no short-term debt, and a revolving credit facility that could provide additional liquidity of up to $2.5 billion if needed.
“While things are far from normal for any of us or our businesses at present, I am inspired and heartened by the teamwork, flexibility, ingenuity, and selflessness demonstrated by the ITW team in adapting to the very unusual and challenging circumstances brought about by the pandemic,” said E. Scott Santi, chairman and CEO. “Our ITW colleagues everywhere are going the extra mile to protect the health and support the well-being of each other and to continue to serve our customers with excellence. Around the world, many ITW manufacturing locations have been designated as essential, signifying the vital role the company plays in supporting customers and industries that are critical to the economic health of the markets and communities we serve.
“It remains highly uncertain as to how long this global pandemic and related economic challenges will last or how quickly our customers and end-markets will recover. However, I am confident the strength and resilience of ITW’s powerful business model, our diversified, high-quality business portfolio, and our people put us in a position of strength to deal with whatever lies ahead.”
Due to the uncertainties regarding the duration and severity of the coronavirus pandemic, ITW is suspending its previously announced annual guidance for 2020.
