GLENVIEW, IL – Illinois Tool Works reported second quarter Test & Measurement and Electronics revenue of $455 million, down 14.6% year-over-year and 6.2% sequentially.
Operating income for the quarter ended June 30 was $117 million, a decrease of 10.7% year-over-year and 3.3% sequentially.
For the first six months of 2020, revenue was $940 million, a decrease of 7% compared to the same period last year. Operating income was $238 million, down 7.4%.
ITW's Test & Measurement/Electronics group includes MPM, Electrovert, Vitronics Soltec and other leading brands.
The conglomerate reduced expenses by $140 million in the period, while generating $449 million in operating income, $681 million in free cash flow, and an overall operating margin of 17.5%.
“Our performance in the second quarter clearly demonstrates the progress we have made on executing our long-term enterprise strategy has put ITW in a position of considerable strength in managing through the effects of the global pandemic,” said E. Scott Santi, chairman and CEO, ITW. “Looking forward, while significant end-market disruption and uncertainties remain, we will continue to leverage our financial strength and ample liquidity to prioritize playing offense in the recovery over playing defense in the contraction and to ensure that every one of our businesses is strongly positioned to fully participate in the recovery.”
At quarter’s end, ITW had approximately $1.8 billion in cash and cash equivalents on hand, essentially no short-term debt and a revolving credit facility in place that could provide additional liquidity of up to $2.5 billion, if needed.
On May 5, ITW suspended annual guidance for 2020 due to uncertainties regarding the duration and severity of the Covid-19 pandemic.