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Illinois Tool Works Sees Earnings, Revenue Growth for 2021 as Fourth-Quarter Results Top Expectations

· 02/05/2021 07:06

12:05 PM EST, 02/05/2021 (MT Newswires) -- Illinois Tool Works (ITW) expects higher earnings and revenue for full-year 2021 as the industrial product maker's fourth-quarter results beat consensus with record operating income, operating margin and return on invested capital performance.

The Glenview, Illinois-based company anticipates revenue of between $13.7 billion and $14.1 billion this year, up from $12.6 billion last year. Per-share earnings are expected to come in at $7.60 to $8, higher than $6.63 billion last year. The consensus of analysts polled by Capital IQ is for $13.07 billion in revenue and EPS of $7.66.

The company posted earnings of $2.02 per share, up from $1.99 a year earlier. The Street had called for $1.78. Operating revenue for the December quarter rose to $3.48 billion from $3.47 billion, above analysts' views for $3.31 billion.

Revenue in the latest quarter reflects a "solid recovery progress" from $3.31 billion in the third quarter, according to an earnings presentation.

"In the face of a global pandemic, our ability to deliver strong operational and financial performance while remaining fully invested in the execution of our long-term enterprise strategy provides further evidence that ITW is a company that has the enduring competitive advantages, resilience, and agility necessary to deliver consistent top-tier performance in any environment and over the long term," said Chairman and Chief Executive Officer E. Scott Santi.

ITW said it delivered record operating income of $883 million, an increase of 7%, and a record operating margin of 25.4%, a jump of 170 basis points with enterprise initiatives contributing 130 basis points. Return on invested capital also increased 310 basis points to a record 32%, the company added.

Illinois Tool Works' construction products segment posted operating revenue growth of 12%, 10% in automotive OEM, and 7% in polymers and fluids. Food equipment fell by 17%, welding by 5%, test and measurement by 3%, and specialty products by about 2%.

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