Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth
quarter and full year 2023 results and initiated guidance for full
year 2024.
“In a challenging macro demand environment, the
ITW team continued to leverage the strength and resilience of ITW’s
proprietary business model and high-quality diversified portfolio
to deliver a solid finish to a record year for the company,” said
Christopher A. O’Herlihy, President and Chief Executive
Officer.
“2023 marked another year of strong operational
execution and financial performance, as ITW delivered organic
growth of two percent, expanded operating margin by 130 basis
points to 25.1 percent, grew operating income seven percent to $4
billion, and increased cash flow by more than 50 percent. We made
solid progress in our efforts to build above-market organic growth
fueled by customer-back innovation into a defining ITW strength, on
par with our world-class financial and operational capabilities. As
a result, we are very pleased with our momentum and positioning
heading into 2024. I want to thank my ITW colleagues around the
world for their extraordinary dedication and commitment to serving
our customers and executing our strategy with excellence every
day.”
Fourth Quarter 2023 Results
Fourth quarter revenue of $4.0 billion increased
0.3 percent with organic revenue down 0.5 percent, as divestitures
reduced revenue by 0.4 percent and favorable foreign currency
translation added 1.2 percent. End customer and channel inventory
reduction efforts combined with the impact from automotive industry
labor actions reduced organic growth by an estimated 1.5 percent in
the quarter.
GAAP EPS of $2.38 included $(0.04) of
unfavorable impact from the devaluation of Argentina’s currency.
Operating income of $988 million was a fourth-quarter company
record, and enterprise initiatives contributed 150 basis points to
operating margin of 24.8 percent. Operating cash flow was $1
billion, and free cash flow grew 39 percent to a record $908
million, with a conversion of 127 percent to net income. During the
quarter, the company repurchased $375 million of its own shares and
the effective tax rate was 22.6 percent.
Full Year 2023 Results
Full year revenue of $16.1 billion increased one
percent with organic revenue growth of two percent. The net impact
from divestitures and foreign currency translation reduced revenue
by one percent. End customer and channel inventory reduction impact
reduced organic growth by an estimated one percent. On a geographic
basis, organic growth was essentially flat in North America, up
four percent in Europe, and up seven percent in Asia Pacific.
GAAP EPS of $9.74 increased six percent
excluding divestiture gains of $0.60 in 2022. Operating income of
$4 billion grew seven percent, and operating margin increased 130
basis points to a record 25.1 percent with enterprise initiatives
contributing 130 basis points. Operating cash flow was $3.5 billion
and free cash flow was a record $3.1 billion, an increase of 59
percent with a conversion of 104 percent to net income. The company
invested approximately $800 million to support the long-term
profitable growth of its businesses and returned $3.1 billion to
shareholders through dividends and share repurchases and raised the
dividend by seven percent per share. The effective tax rate was
22.6 percent.
2024 Guidance
The company is initiating 2024 guidance
including GAAP EPS in the range of $10.00 to $10.40 per share and
revenue growth of two to four percent based on current levels of
demand. Organic growth is projected to be one to three percent with
foreign currency translation at current exchange rates adding
approximately one percent to revenue. Operating margin is projected
to be in the range of 25.5 to 26.5 percent, with enterprise
initiatives contributing approximately 100 basis points. Free cash
flow is expected to be greater than 100 percent of net income and
the company plans to repurchase approximately $1.5 billion of its
own shares. The projected effective tax rate is in the range of 24
to 24.5 percent.
Non-GAAP Measures
This earnings release contains certain non-GAAP
financial measures. A reconciliation of these measures to the most
directly comparable GAAP measures is included in the attached
supplemental reconciliation schedule. The estimated guidance of
free cash flow to net income conversion rate is based on
assumptions that are difficult to predict, and estimated guidance
for the most directly comparable GAAP measure and a reconciliation
of this forward-looking estimate to its most directly comparable
GAAP estimate have been omitted due to the unreasonable efforts
required in connection with such a reconciliation and the lack of
reliable forward-looking cash flow information. For the same
reasons, the company is unable to address the potential
significance of the unavailable information, which could be
material to future results.
Forward-looking Statements
This earnings release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements may include, without
limitation, statements regarding global supply chain challenges,
expected impact of inflation including raw material inflation and
rising interest rates, the impact of enterprise initiatives, future
financial and operating performance, free cash flow and free cash
flow to net income conversion rate, organic and total revenue,
operating and incremental margin, price/cost impact, statements
regarding diluted income per share, restructuring expenses and
related benefits, expected dividend payments, after-tax return on
invested capital, effective tax rates, exchange rates, expected
access to liquidity sources, expected capital allocation, expected
timing and amount of share repurchases, end market economic and
regulatory conditions, the impact of recent or potential
acquisitions and/or divestitures, and the Company’s 2024 guidance.
These statements are subject to certain risks, uncertainties,
assumptions, and other factors, which could cause actual results to
differ materially from those anticipated. Important risks that
could cause actual results to differ materially from the Company’s
expectations include those that are detailed in ITW’s Form 10-K for
2022 and subsequent reports filed with the SEC.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 200 global
multi-industrial manufacturing leader with revenue of $16.1 billion
in 2023. The company’s seven industry-leading segments leverage the
unique ITW Business Model to drive solid growth with best-in-class
margins and returns in markets where highly innovative,
customer-focused solutions are required. ITW’s approximately 45,000
dedicated colleagues around the world thrive in the company’s
decentralized and entrepreneurial culture. www.itw.com
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESSTATEMENT OF INCOME
(UNAUDITED)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
In millions except per share amounts |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Operating Revenue |
$ |
3,983 |
|
|
$ |
3,971 |
|
|
$ |
16,107 |
|
|
$ |
15,932 |
|
|
Cost of revenue |
|
2,312 |
|
|
|
2,309 |
|
|
|
9,316 |
|
|
|
9,429 |
|
|
Selling, administrative, and research and development expenses |
|
658 |
|
|
|
644 |
|
|
|
2,638 |
|
|
|
2,579 |
|
|
Amortization and impairment of intangible assets |
|
25 |
|
|
|
32 |
|
|
|
113 |
|
|
|
134 |
|
|
Operating Income |
|
988 |
|
|
|
986 |
|
|
|
4,040 |
|
|
|
3,790 |
|
|
Interest expense |
|
(70 |
) |
|
|
(56 |
) |
|
|
(266 |
) |
|
|
(203 |
) |
|
Other income (expense) |
|
9 |
|
|
|
191 |
|
|
|
49 |
|
|
|
255 |
|
|
Income Before Taxes |
|
927 |
|
|
|
1,121 |
|
|
|
3,823 |
|
|
|
3,842 |
|
|
Income taxes |
|
210 |
|
|
|
214 |
|
|
|
866 |
|
|
|
808 |
|
|
Net Income |
$ |
717 |
|
|
$ |
907 |
|
|
$ |
2,957 |
|
|
$ |
3,034 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.39 |
|
|
$ |
2.96 |
|
|
$ |
9.77 |
|
|
$ |
9.80 |
|
|
Diluted |
$ |
2.38 |
|
|
$ |
2.95 |
|
|
$ |
9.74 |
|
|
$ |
9.77 |
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends Per Share: |
|
|
|
|
|
|
|
|
Paid |
$ |
1.40 |
|
|
$ |
1.31 |
|
|
$ |
5.33 |
|
|
$ |
4.97 |
|
|
Declared |
$ |
1.40 |
|
|
$ |
1.31 |
|
|
$ |
5.42 |
|
|
$ |
5.06 |
|
|
|
|
|
|
|
|
|
|
|
Shares of Common Stock Outstanding During the Period: |
|
|
|
|
|
|
|
|
Average |
|
300.1 |
|
|
|
306.8 |
|
|
|
302.6 |
|
|
|
309.6 |
|
|
Average assuming dilution |
|
301.1 |
|
|
|
307.9 |
|
|
|
303.6 |
|
|
|
310.7 |
|
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION
(UNAUDITED)
|
In millions |
December 31, 2023 |
|
December 31, 2022 |
|
Assets |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and equivalents |
$ |
1,065 |
|
|
$ |
708 |
|
|
Trade receivables |
|
3,123 |
|
|
|
3,171 |
|
|
Inventories |
|
1,707 |
|
|
|
2,054 |
|
|
Prepaid expenses and other current assets |
|
340 |
|
|
|
329 |
|
|
Assets held for sale |
|
— |
|
|
|
8 |
|
|
Total current assets |
|
6,235 |
|
|
|
6,270 |
|
|
|
|
|
|
|
Net plant and equipment |
|
1,976 |
|
|
|
1,848 |
|
|
Goodwill |
|
4,909 |
|
|
|
4,864 |
|
|
Intangible assets |
|
657 |
|
|
|
768 |
|
|
Deferred income taxes |
|
479 |
|
|
|
494 |
|
|
Other assets |
|
1,262 |
|
|
|
1,178 |
|
|
|
$ |
15,518 |
|
|
$ |
15,422 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current Liabilities: |
|
|
|
|
Short-term debt |
$ |
1,825 |
|
|
$ |
1,590 |
|
|
Accounts payable |
|
581 |
|
|
|
594 |
|
|
Accrued expenses |
|
1,663 |
|
|
|
1,728 |
|
|
Cash dividends payable |
|
419 |
|
|
|
400 |
|
|
Income taxes payable |
|
187 |
|
|
|
147 |
|
|
Liabilities held for sale |
|
— |
|
|
|
1 |
|
|
Total current liabilities |
|
4,675 |
|
|
|
4,460 |
|
|
|
|
|
|
|
Noncurrent Liabilities: |
|
|
|
|
Long-term debt |
|
6,339 |
|
|
|
6,173 |
|
|
Deferred income taxes |
|
326 |
|
|
|
484 |
|
|
Noncurrent income taxes payable |
|
151 |
|
|
|
273 |
|
|
Other liabilities |
|
1,014 |
|
|
|
943 |
|
|
Total noncurrent liabilities |
|
7,830 |
|
|
|
7,873 |
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
Common stock |
|
6 |
|
|
|
6 |
|
|
Additional paid-in-capital |
|
1,588 |
|
|
|
1,501 |
|
|
Retained earnings |
|
27,122 |
|
|
|
25,799 |
|
|
Common stock held in treasury |
|
(23,870 |
) |
|
|
(22,377 |
) |
|
Accumulated other comprehensive income (loss) |
|
(1,834 |
) |
|
|
(1,841 |
) |
|
Noncontrolling interest |
|
1 |
|
|
|
1 |
|
|
Total stockholders' equity |
|
3,013 |
|
|
|
3,089 |
|
|
|
$ |
15,518 |
|
|
$ |
15,422 |
|
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESSEGMENT DATA (UNAUDITED)
|
Three Months Ended December 31, 2023 |
|
Dollars in millions |
Total Revenue |
Operating Income |
Operating Margin |
|
Automotive OEM |
$ |
814 |
|
$ |
143 |
|
17.6 |
% |
|
Food Equipment |
|
655 |
|
|
177 |
|
27.0 |
% |
|
Test & Measurement and Electronics |
|
731 |
|
|
185 |
|
25.3 |
% |
|
Welding |
|
451 |
|
|
134 |
|
29.6 |
% |
|
Polymers & Fluids |
|
440 |
|
|
125 |
|
28.5 |
% |
|
Construction Products |
|
459 |
|
|
124 |
|
26.9 |
% |
|
Specialty Products |
|
437 |
|
|
116 |
|
26.6 |
% |
|
Intersegment |
|
(4 |
) |
|
— |
|
— |
% |
|
Total Segments |
|
3,983 |
|
|
1,004 |
|
25.2 |
% |
|
Unallocated |
|
— |
|
|
(16 |
) |
— |
% |
|
Total Company |
$ |
3,983 |
|
$ |
988 |
|
24.8 |
% |
|
Twelve Months Ended December 31, 2023 |
|
Dollars in millions |
Total Revenue |
Operating Income |
Operating Margin |
|
Automotive OEM |
$ |
3,235 |
|
$ |
561 |
|
17.3 |
% |
|
Food Equipment |
|
2,622 |
|
|
713 |
|
27.2 |
% |
|
Test & Measurement and Electronics |
|
2,832 |
|
|
686 |
|
24.2 |
% |
|
Welding |
|
1,902 |
|
|
605 |
|
31.8 |
% |
|
Polymers & Fluids |
|
1,804 |
|
|
482 |
|
26.7 |
% |
|
Construction Products |
|
2,033 |
|
|
578 |
|
28.4 |
% |
|
Specialty Products |
|
1,697 |
|
|
449 |
|
26.5 |
% |
|
Intersegment |
|
(18 |
) |
|
— |
|
— |
% |
|
Total Segments |
|
16,107 |
|
|
4,074 |
|
25.3 |
% |
|
Unallocated |
|
— |
|
|
(34 |
) |
— |
% |
|
Total Company |
$ |
16,107 |
|
$ |
4,040 |
|
25.1 |
% |
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESSEGMENT DATA (UNAUDITED)
|
Q4 2023 vs. Q4 2022 Favorable/(Unfavorable) |
|
Operating Revenue |
Automotive OEM |
Food Equipment |
Test & Measurement and Electronics |
Welding |
Polymers & Fluids |
Construction Products |
Specialty Products |
Total ITW |
|
Organic |
7.7 |
% |
2.7 |
% |
(1.4 |
)% |
(6.8 |
)% |
(1.6 |
)% |
(3.5 |
)% |
(5.4 |
)% |
(0.5 |
)% |
|
Acquisitions/Divestitures |
— |
% |
(0.9 |
)% |
— |
% |
— |
% |
— |
% |
— |
% |
(1.8 |
)% |
(0.4 |
)% |
|
Translation |
1.7 |
% |
2.1 |
% |
1.1 |
% |
0.5 |
% |
(1.6 |
)% |
1.2 |
% |
1.8 |
% |
1.2 |
% |
|
Operating Revenue |
9.4 |
% |
3.9 |
% |
(0.3 |
)% |
(6.3 |
)% |
(3.2 |
)% |
(2.3 |
)% |
(5.4 |
)% |
0.3 |
% |
|
Q4 2023 vs. Q4 2022 Favorable/(Unfavorable) |
|
Change in Operating Margin |
Automotive OEM |
Food Equipment |
Test & Measurement and Electronics |
Welding |
Polymers & Fluids |
Construction Products |
Specialty Products |
Total ITW |
|
Operating Leverage |
130 bps |
50 bps |
(30) bps |
(100) bps |
(30) bps |
(60) bps |
(110) bps |
(10) bps |
|
Changes in Variable Margin & OH Costs |
80 bps |
(90) bps |
(110) bps |
(110) bps |
370 bps |
190 bps |
90 bps |
40 bps |
|
Total Organic |
210 bps |
(40) bps |
(140) bps |
(210) bps |
340 bps |
130 bps |
(20) bps |
30 bps |
|
Acquisitions/Divestitures |
— |
10 bps |
— |
— |
— |
— |
50 bps |
10 bps |
|
Restructuring/Other |
(160) bps |
(30) bps |
(20) bps |
10 bps |
(70) bps |
10 bps |
60 bps |
(40) bps |
|
Total Operating Margin Change |
50 bps |
(60) bps |
(160) bps |
(200) bps |
270 bps |
140 bps |
90 bps |
— |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Margin % * |
17.6% |
27.0% |
25.3% |
29.6% |
28.5% |
26.9% |
26.6% |
24.8% |
|
|
|
|
|
|
|
|
|
|
|
* Includes unfavorable operating margin impact of amortization
expense from acquisition-related intangible assets |
20 bps |
50 bps |
140 bps |
10 bps |
160 bps |
20 bps |
20 bps |
60 bps ** |
|
** Amortization expense from acquisition-related intangible assets
had an unfavorable impact of ($0.06) on GAAP earnings per share for
the fourth quarter of 2023. |
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESSEGMENT DATA (UNAUDITED)
|
Full Year 2023 vs Full Year 2022
Favorable/(Unfavorable) |
|
Operating Revenue |
Automotive OEM |
Food Equipment |
Test & Measurement and Electronics |
Welding |
Polymers & Fluids |
Construction Products |
Specialty Products |
Total ITW |
|
Organic |
8.8 |
% |
7.8 |
% |
0.3 |
% |
0.3 |
% |
0.3 |
% |
(3.2 |
)% |
(4.9 |
)% |
2.0 |
% |
|
Acquisitions/Divestitures |
— |
% |
(1.2 |
)% |
— |
% |
— |
% |
(4.0 |
)% |
— |
% |
(1.6 |
)% |
(0.8 |
)% |
|
Translation |
0.2 |
% |
0.7 |
% |
(0.2 |
)% |
0.1 |
% |
(1.6 |
)% |
(0.6 |
)% |
0.8 |
% |
(0.1 |
)% |
|
Operating Revenue |
9.0 |
% |
7.3 |
% |
0.1 |
% |
0.4 |
% |
(5.3 |
)% |
(3.8 |
)% |
(5.7 |
)% |
1.1 |
% |
|
Full Year 2023 vs Full Year 2022
Favorable/(Unfavorable) |
|
Change in Operating Margin |
Automotive OEM |
Food Equipment |
Test & Measurement and Electronics |
Welding |
Polymers & Fluids |
Construction Products |
Specialty Products |
Total ITW |
|
Operating Leverage |
160 bps |
150 bps |
10 bps |
10 bps |
— |
(60) bps |
(90) bps |
40 bps |
|
Changes in Variable Margin & OH Costs |
(120) bps |
30 bps |
10 bps |
90 bps |
180 bps |
330 bps |
30 bps |
90 bps |
|
Total Organic |
40 bps |
180 bps |
20 bps |
100 bps |
180 bps |
270 bps |
(60) bps |
130 bps |
|
Acquisitions/Divestitures |
— |
20 bps |
— |
— |
30 bps |
— |
40 bps |
10 bps |
|
Restructuring/Other |
10 bps |
(10) bps |
(20) bps |
— |
(60) bps |
(20) bps |
— |
(10) bps |
|
Total Operating Margin Change |
50 bps |
190 bps |
— |
100 bps |
150 bps |
250 bps |
(20) bps |
130 bps |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Margin % * |
17.3% |
27.2% |
24.2% |
31.8% |
26.7% |
28.4% |
26.5% |
25.1% |
|
|
|
|
|
|
|
|
|
|
|
* Includes unfavorable operating margin impact of amortization
expense from acquisition-related intangible assets |
30 bps |
50 bps |
160 bps |
10 bps |
180 bps |
20 bps |
40 bps |
70 bps ** |
|
** Amortization expense from acquisition-related intangible assets
had an unfavorable impact of ($0.28) on GAAP earnings per share for
2023. |
ILLINOIS TOOL WORKS INC. and
SUBSIDIARIESGAAP to NON-GAAP RECONCILIATIONS
(UNAUDITED)
AFTER-TAX RETURN ON AVERAGE INVESTED
CAPITAL (UNAUDITED)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
Dollars in millions |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Numerator: |
|
|
|
|
|
|
|
|
Net income |
$ |
717 |
|
|
$ |
907 |
|
|
$ |
2,957 |
|
|
$ |
3,034 |
|
|
Discrete tax benefit related to the second quarter 2023 |
|
— |
|
|
|
— |
|
|
|
(20) |
|
|
|
— |
|
|
Discrete tax benefit related to the fourth quarter 2022 |
|
— |
|
|
|
(32) |
|
|
|
— |
|
|
|
(32) |
|
|
Discrete tax benefit related to the second quarter 2022 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51) |
|
|
Interest expense, net of tax(1) |
|
54 |
|
|
|
44 |
|
|
|
204 |
|
|
|
156 |
|
|
Other (income) expense, net of tax(1) |
|
(7) |
|
|
|
(147) |
|
|
|
(38) |
|
|
|
(196) |
|
|
Operating income after taxes |
$ |
764 |
|
|
$ |
772 |
|
|
$ |
3,103 |
|
|
$ |
2,911 |
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
Invested capital: |
|
|
|
|
|
|
|
|
Cash and equivalents |
$ |
1,065 |
|
|
$ |
708 |
|
|
$ |
1,065 |
|
|
$ |
708 |
|
|
Trade receivables |
|
3,123 |
|
|
|
3,171 |
|
|
|
3,123 |
|
|
|
3,171 |
|
|
Inventories |
|
1,707 |
|
|
|
2,054 |
|
|
|
1,707 |
|
|
|
2,054 |
|
|
Net assets held for sale |
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
7 |
|
|
Net plant and equipment |
|
1,976 |
|
|
|
1,848 |
|
|
|
1,976 |
|
|
|
1,848 |
|
|
Goodwill and intangible assets |
|
5,566 |
|
|
|
5,632 |
|
|
|
5,566 |
|
|
|
5,632 |
|
|
Accounts payable and accrued expenses |
|
(2,244) |
|
|
|
(2,322) |
|
|
|
(2,244) |
|
|
|
(2,322) |
|
|
Debt |
|
(8,164) |
|
|
|
(7,763) |
|
|
|
(8,164) |
|
|
|
(7,763) |
|
|
Other, net |
|
(16) |
|
|
|
(246) |
|
|
|
(16) |
|
|
|
(246) |
|
|
Total net assets (stockholders' equity) |
|
3,013 |
|
|
|
3,089 |
|
|
|
3,013 |
|
|
|
3,089 |
|
|
Cash and equivalents |
|
(1,065) |
|
|
|
(708) |
|
|
|
(1,065) |
|
|
|
(708) |
|
|
Debt |
|
8,164 |
|
|
|
7,763 |
|
|
|
8,164 |
|
|
|
7,763 |
|
|
Total invested capital |
$ |
10,112 |
|
|
$ |
10,144 |
|
|
$ |
10,112 |
|
|
$ |
10,144 |
|
|
|
|
|
|
|
|
|
|
|
Average invested capital(2) |
$ |
10,096 |
|
|
$ |
10,006 |
|
|
$ |
10,214 |
|
|
$ |
10,017 |
|
|
|
|
|
|
|
|
|
|
|
Net income to average invested capital(3) |
|
28.4% |
|
|
|
36.3% |
|
|
|
29.0% |
|
|
|
30.3% |
|
|
After-tax return on average invested capital(3) |
|
30.3% |
|
|
|
30.8% |
|
|
|
30.4% |
|
|
|
29.1% |
|
|
(1) |
|
Effective tax rate used for interest expense and other (income)
expense for the three months ended December 31, 2023 and 2022
was 22.6% and 22.0%, respectively, and 23.2% for the twelve months
ended December 31, 2023 and 2022. |
|
|
|
|
| (2) |
|
Average invested capital is
calculated using the total invested capital balances at the start
of the period and at the end of each quarter within each of the
periods presented. |
| |
|
|
| (3) |
|
Returns for the three months
ended December 31, 2023 and 2022 were converted to an annual rate
by multiplying the calculated return by 4. |
| |
|
|
A reconciliation of the 2023 effective tax rate
excluding the second quarter 2023 discrete tax benefit of $20
million related to amended 2021 U.S. taxes is as follows:
|
|
Twelve Months Ended |
|
|
December 31, 2023 |
|
Dollars in millions |
Income Taxes |
|
Tax Rate |
|
As reported |
$ |
866 |
|
22.6 |
% |
|
Discrete tax benefit related to the second quarter 2023 |
|
20 |
|
0.6 |
% |
|
As adjusted |
$ |
886 |
|
23.2 |
% |
A reconciliation of the effective tax rate for the
three and twelve month periods ended December 31, 2022, excluding
the fourth quarter 2022 discrete tax benefit of $32 million related
to the utilization of capital loss carryforwards and the second
quarter 2022 discrete tax benefit of $51 million related to the
resolution of a U.S. tax audit, is as follows:
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2022 |
|
December 31, 2022 |
|
Dollars in millions |
Income Taxes |
|
Tax Rate |
|
Income Taxes |
|
Tax Rate |
|
As reported |
$ |
214 |
|
19.1 |
% |
|
$ |
808 |
|
21.0 |
% |
|
Discrete tax benefit related to the fourth quarter 2022 |
|
32 |
|
2.9 |
% |
|
|
32 |
|
0.8 |
% |
|
Discrete tax benefit related to the second quarter 2022 |
|
— |
|
— |
% |
|
|
51 |
|
1.4 |
% |
|
As adjusted |
$ |
246 |
|
22.0 |
% |
|
$ |
891 |
|
23.2 |
% |
FREE CASH FLOW (UNAUDITED)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
Dollars in millions |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net cash provided by operating activities |
$ |
1,039 |
|
$ |
811 |
|
$ |
3,539 |
|
$ |
2,348 |
|
Less: Additions to plant and equipment |
|
(131) |
|
|
(156) |
|
|
(455) |
|
|
(412) |
|
Free cash flow |
$ |
908 |
|
$ |
655 |
|
$ |
3,084 |
|
$ |
1,936 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
717 |
|
$ |
907 |
|
$ |
2,957 |
|
$ |
3,034 |
|
|
|
|
|
|
|
|
|
| Net cash provided by operating
activities to net income conversion rate |
|
145% |
|
|
89% |
|
|
120% |
|
|
77% |
|
Free cash flow to net income conversion rate |
|
127% |
|
|
72% |
|
|
104% |
|
|
64% |
|
|
Three Months Ended |
|
|
March 31, |
|
June 30, |
|
September 30, |
|
Dollars in millions |
2023 |
|
2023 |
|
2023 |
|
Net cash provided by operating activities |
$ |
728 |
|
$ |
790 |
|
$ |
982 |
|
Less: Additions to plant and equipment |
|
(113) |
|
|
(85) |
|
|
(126) |
|
Free cash flow |
$ |
615 |
|
$ |
705 |
|
$ |
856 |
|
|
|
|
|
|
|
|
Net income |
$ |
714 |
|
$ |
754 |
|
$ |
772 |
|
|
|
|
|
|
|
| Net cash provided by operating
activities to net income conversion rate |
|
102% |
|
|
105% |
|
|
127% |
| Free cash flow to net income
conversion rate |
|
86% |
|
|
94% |
|
|
111% |
ADJUSTED NET INCOME PER SHARE - DILUTED
(UNAUDITED)
|
|
Three Months Ended |
|
|
December 31, 2023 |
|
As reported |
$ |
2.38 |
|
Argentina currency devaluation impact in the fourth quarter
2023 |
|
0.04 |
|
As adjusted |
$ |
2.42 |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2022 |
|
December 31, 2022 |
|
As reported |
$ |
2.95 |
|
|
$ |
9.77 |
|
|
Net impact of gains from two divestitures in the fourth quarter
2022 |
|
(0.61 |
) |
|
|
(0.60 |
) |
|
As adjusted |
$ |
2.34 |
|
|
$ |
9.17 |
|
| Media
Contact |
|
Investor Relations |
| Erin Linnihan |
|
Karen Fletcher / Erin Linnihan |
| Tel: 224.661.7451 |
|
Tel: 224.661.7433 |
| mediarelations@itw.com |
|
investorrelations@itw.com |
Illinois Tool Works (NYSE:ITW)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Illinois Tool Works (NYSE:ITW)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
