GLENVIEW, Ill., June 15 /PRNewswire-FirstCall/ --
Illinois Tool Works Inc. (NYSE:ITW) today reported an operating revenue decrease of 26 percent for the three months ended May 31, 2009. The revenue decline for the three months was due to a 23 percent decrease in base revenues and a 9 percent decline in contributions from currency translation. Acquisitions contributed 6 percent to revenues in the three month period. The Company's base revenues continue to stabilize as core revenues have been in a range of -21 percent to -25 percent for the past 5 months of January through May 2009.
On a segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below.
(% change for 3 months ended May 31, 2009 versus prior year period)
*Industrial Packaging: - 37.2%
*Power Systems and Electronics: - 37.1%
*Transportation: - 22.9%
*Food Equipment: - 15.0%
*Construction Products: - 36.6%
*Polymers and Fluids: - 7.9%
*Decorative Surfaces - 24.0%
*All Other: - 18.3%
Due to the Decorative Surfaces segment being placed back into continuing operations as was announced on May 8, 2009, the segment is expected to add four cents to income per share from continuing operations in the current quarter. As a result, the Company is now forecasting second quarter 2009 diluted income per share from continuing operations to be in a range of $0.29 to $0.41. On a restated basis, Decorative Surfaces also added four cents of earnings to ITW's 2009 first quarter results. The updated second quarter forecast assumes a total revenue improvement of 5 percent to 11 percent compared to the restated first quarter of 2009.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitations, statements regarding operating revenues, the Decorative Surfaces segment, diluted income per share from continuing operations and the Company's related forecasts. These statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially from the Company's expectations are set forth in ITW's Form 10-Q for the 2009 first quarter.
With $15.9 billion in revenues, ITW is a multinational manufacturer of a diversified range of value-adding and short lead-time industrial products and equipment. The Company consists of 875 business units in 54 countries and employs some 61,000 people.
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
2008 & 2009 PRO FORMA STATEMENT OF INCOME RESTATED FOR
DECORATIVE SURFACES SEGMENT
(UNAUDITED)
(In thousands except for per share amounts)
1Q 2008 2Q 2008 3Q 2008 4Q 2008
Operating Revenues $4,125,810 $4,555,881 $4,464,621 $3,954,029
Cost of revenues 2,692,485 2,941,457 2,936,599 2,616,330
Selling,
administrative,
and R&D expenses 773,117 814,962 806,533 831,587
Amortization of
intangible assets 40,139 42,303 50,491 51,477
Impairment of
goodwill and other 1,438 - - 137
intangible assets
Operating Income 618,631 757,159 670,998 454,498
Interest expense (37,467) (36,588) (38,240) (42,163)
Other income
(expense) (21,133) 24,294 16,763 (15,214)
Income from Continuing
Operations Before
Income Taxes 560,031 744,865 649,521 397,121
Income taxes 164,693 216,161 184,935 94,656
Income (Loss) from
Continuing Operations 395,338 528,704 464,586 302,465
Loss from Discontinued
Operations (91,717) (614) (11,068) (68,691)
Net Income (Loss) $303,621 $528,090 $453,518 $233,774
Income (Loss) Per Share
From Continuing
Operations:
Basic $0.75 $1.01 $0.90 $0.59
Diluted $0.75 $1.01 $0.89 $0.59
Loss Per Share from
Discontinued
Operations:
Basic $(0.17) $(0.00) $(0.02) $(0.13)
Diluted $(0.17) $(0.00) $(0.02) $(0.13)
Net Income (Loss) Per
Share:
Basic $0.58 $1.01 $0.88 $0.46
Diluted $0.57 $1.01 $0.87 $0.46
Shares of Common
Stock Outstanding
During the Period:
Average 526,299 521,488 517,914 508,851
Average assuming
dilution 529,725 525,209 521,086 510,184
YTD 2008 1Q 2009
Operating Revenues $17,100,341 $3,146,379
Cost of revenues 11,186,871 2,152,827
Selling, administrative,
and R&D expenses 3,226,199 761,691
Amortization of intangible assets 184,410 50,570
Impairment of goodwill and
other intangible assets 1,575 89,997
Operating Income 2,501,286 91,294
Interest expense (154,458) (31,436)
Other income (expense) 4,710 (4,341)
Income from Continuing Operations
Before Income Taxes 2,351,538 55,517
Income taxes 660,445 63,533
Income (Loss) from Continuing
Operations 1,691,093 (8,016)
Loss from Discontinued
Operations (172,090) (31,358)
Net Income (Loss) $1,519,003 $(39,374)
Income (Loss) Per Share from
Continuing Operations:
Basic $3.26 $(0.02)
Diluted $3.24 $(0.02)
Loss Per Share from
Discontinued Operations:
Basic $(0.33) $(0.06)
Diluted $(0.33) $(0.06)
Net Income (Loss) Per Share:
Basic $2.93 $(0.08)
Diluted $2.91 $(0.08)
Shares of Common Stock
Outstanding During the
Period:
Average 518,609 499,189
Average assuming dilution 521,213 499,189
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
2008 & 2009 PRO FORMA SEGMENT INFORMATION RESTATED FOR DECORATIVE
SURFACES SEGMENT
(UNAUDITED)
(Dollars in thousands)
1Q 2008 2Q 2008 3Q 2008 4Q 2008
Industrial Packaging
Operating Revenues $629,750 $717,986 $694,322 $576,864
Operating Income Loss) 70,106 94,958 77,884 40,474
Margin % 11.1% 13.2% 11.2% 7.0%
Power Systems &
Electronics
Operating Revenues 582,391 648,785 620,743 504,934
Operating Income 124,763 142,124 118,910 78,531
Margin % 21.4% 21.9% 19.2% 15.6%
Transportation
Operating Revenues 594,090 630,427 581,865 540,984
Operating Income (Loss) 91,702 99,705 68,753 16,740
Margin % 15.4% 15.8% 11.8% 3.1%
Food Equipment
Operating Revenues 509,739 538,479 542,687 542,281
Operating Income 70,316 73,675 88,194 88,682
Margin % 13.8% 13.7% 16.3% 16.4%
Construction Products
Operating Revenues 484,034 566,172 525,005 415,472
Operating Income (Loss) 52,179 80,044 75,040 37,559
Margin % 10.8% 14.1% 14.3% 9.0%
Polymers & Fluids
Operating Revenues 255,511 299,249 369,369 325,524
Operating Income (Loss) 35,916 53,677 53,629 36,818
Margin % 14.1% 17.9% 14.5% 11.3%
Decorative Surfaces
Operating Revenues 302,535 335,956 316,867 275,637
Operating Income 34,298 46,761 27,137 34,386
Margin % 11.3% 13.9% 8.6% 12.5%
All Other
Operating Revenues 781,890 833,786 828,006 783,245
Operating Income 139,351 166,215 161,451 121,308
Margin % 17.8% 19.9% 19.5% 15.5%
Intercompany Revenue $(14,130) $(14,959) $(14,243) $(10,912)
As Reported on
Statement of Income
Operating Revenues $4,125,810 $4,555,881 $4,464,621 $3,954,029
Operating Income 618,631 757,159 670,998 454,498
Margin % 15.0% 16.6% 15.0% 11.5%
YTD 2008 1Q 2009
Industrial Packaging
Operating Revenues $2,618,922 $426,145
Operating Income (Loss) 283,422 (2,610)
Margin % 10.8% (0.6)%
Power Systems & Electronics
Operating Revenues 2,356,853 395,455
Operating Income 464,328 25,365
Margin % 19.7% 6.4%
Transportation
Operating Revenues 2,347,366 434,634
Operating Income (Loss) 276,900 (16,448)
Margin % 11.8% (3.8)%
Food Equipment
Operating Revenues 2,133,186 431,200
Operating Income 320,867 44,403
Margin % 15.0% 10.3%
Construction Products
Operating Revenues 1,990,683 323,987
Operating Income (Loss) 244,822 (10,220)
Margin % 12.3% (3.2)%
Polymers & Fluids
Operating Revenues 1,249,653 248,073
Operating Income (Loss) 180,040 (50,620)
Margin % 14.4% (20.4)%
Decorative Surfaces
Operating Revenues 1,230,995 232,111
Operating Income 142,582 27,984
Margin % 11.6% 12.1%
All Other
Operating Revenues 3,226,927 661,804
Operating Income 588,325 73,440
Margin % 18.2% 11.1%
Intercompany Revenue $(54,244) $(7,030)
As Reported on Statement
of Income
Operating Revenues $17,100,341 $3,146,379
Operating Income 2,501,286 91,294
Margin % 14.6% 2.9%
DATASOURCE: Illinois Tool Works Inc.
CONTACT: John Brooklier of Illinois Tool Works Inc., +1-847-657-4104,
Web Site: http://www.itw.com/