Posted July 26, 2011
ITW revenues up 17.5%
Illinois Tool Works Inc. reported second quarter revenues of $4.615 billion increased 17.5 percent versus the year-ago period.
Base revenues grew 6.3 percent, with North American revenues increasing 7.4 percent and international revenues growing 5.1 percent.
Total revenues for the Power Systems and Electronics segment increased 18.8 percent. Segment organic revenues grew 11.9 percent largely based on ongoing strength from the welding businesses. The welding group's worldwide organic revenues grew 18.2 percent in the second quarter, with both North American and international organic revenues increasing by double digits.
Total revenues for the Industrial Packaging segment grew 20.9 percent. Organic revenues for the segment increased 9.6 percent due to contributions from all major business groups. The North American and international businesses grew organic revenues 11.2 percent and 7.6 percent, respectively.
"While our second quarter performance reflected solid demand from a number of worldwide end markets, our 17.5 percent total revenue growth was slightly below our original expectations," said David B. Speer, chairman and chief executive officer. "Both our total revenue and organic revenue growth rates in the second quarter were approximately 100 basis points lower than forecasted in April. We also anticipate similar moderating demand levels in the second half of 2011. As a result, we have modestly adjusted our third quarter revenue assumptions as well as our full-year earnings forecast. Nonetheless, we still believe overall end markets continue to be in a long-term recovery mode."
