Illinois Tool Works Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full-Year of 2014
January 28, 2014 at 08:01 am
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Illinois Tool Works Inc. reported unaudited earnings results for the fourth quarter and full year ended December 31, 2013. For the fourth quarter, the company reported operating revenues of $3,554 million compared to $3,484 million a year ago. Operating income was $628 million compared to $524 million a year ago. Income from continuing operations before income taxes were $573 million compared to $1,376 million a year ago. Income from continuing operations were $407 million or $0.92 per diluted share compared to $921 million or $1.99 per diluted share a year ago. Net income was $408 million or $0.93 per diluted share compared to $979 million or $2.11 per diluted share a year ago. Net cash provided by operating activities were $708 million compared to $605 million a year ago. Adjusted operating income was $628 million compared to $512 million a year ago. Adjusted operating income after taxes was $446 million compared to $356 million a year ago. Free operating cash flow for the quarter was $597 million or 147% of net income.
For the full year, the company reported operating revenues of $14,135 million compared to $14,791 million a year ago. Operating income was $2,514 million compared to $2,475 million a year ago. Income from continuing operations before income taxes were $2,347 million compared to $3,206 million a year ago. Income from continuing operations were $1,630 million or $3.63 per diluted share compared to $2,233 million or $4.72 per diluted share a year ago. Net income was $1,679 million or $3.74 per diluted share compared to $2,870 million or $6.06 per diluted share a year ago. Net cash provided by operating activities were $2,528 million compared to $2,072 million a year ago. Adjusted operating income was $2,514 million compared to $2,332 million a year ago. Adjusted operating income after taxes was $1,790 million compared to $1,651 million a year ago. Free cash flow for the year was $2.2 billion, 129% of net income.
For the first quarter, the company is forecasting EPS to be in a range of $0.93 to $1.01 and expects total revenue growth in a range of 3% to 6%.
For the year, the company continues to expect EPS to be in a range of $4.30 to $4.50. This EPS range assumes total revenue growth range of 2% to 4% and organic growth of 2% to 3%. The company expects operating margins of approximately 19% for the year.
Illinois Tool Works Inc. is a diversified industrial group organized around 7 families of products:
- automotive equipment (20.1% of net sales). Besides, the group proposes products for maintenance and refurbishment (coatings, sealants, shutters, etc.);
- electronic equipment (17.5%): primarily equipment of microelectronic assembly. The group also provides test and measurement equipment and software;
- equipment for industrial kitchens (16.3%): cookers, dishwasher, ovens, refrigerators, cupboards, systems of aeration, etc.;
- construction systems and materials (12.6%): powder and gas nailing, perforators and consumables (fuses, chisels, pads, plugs, etc.) intended for applications on wood, steel and concrete;
- polymers, coatings, resins, adhesives and lubricants (11.2%);
- metallurgical equipment (10.5%): arc welding equipment, blowtorches, welding accessories, etc.
- specialty products (11.3%): industrial packaging systems and materials, products coding and marking equipment, etc.
Net sales are distributed geographically as follows: the United States (47.1%), North America (6.9%), Europe/Middle East/Africa (25.8%), Asia/Pacific (18.3%) and South America (1.9%).
Illinois Tool Works Inc. Reports Unaudited Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full-Year of 2014