ITW 4Q revenues increase 10 percent

GLENVIEW — Illinois Tool Works Inc. today reported fourth quarter 2011 diluted income per share from continuing operations of 90 cents a 36 percent increase compared to the 2010 fourth quarter. Total revenues of $4.319 billion in the 2011 fourth quarter were 10.4 percent higher than the year-ago period.

The company said base revenues grew 5.9 percent, with North American organic revenues increasing 8.7 percent and international organic revenues growing 3.0 percent. Notably, European organic revenues grew 2.6 percent while China organic revenues increased 9.8 percent.

Operating income was $647.1 million and income from continuing operations was $437.1 million, an increase of 34 percent and 33 percent, respectively.

“Our fourth quarter financial performance was a solid effort by the ITW team,” said Chairman and Chief Executive Officer David B. Speer. “We produced strong top line growth, solid margin improvement and impressive free operating cash flow. The fourth quarter capped off very strong full-year performance, with 2011 revenues growing 15.4 percent and organic revenues increasing 7.5 percent.  This helped us achieve record 2011 full-year revenues as well as record operating earnings.  We also delivered 15.4 percent operating margins that were 80 basis points higher than 2010.”

Total company operating margins of 15.0 percent were 270 basis points higher due to the improvement in base operating margins of 330 basis points. Seven of ITW’s eight segments reported operating margin improvement in the quarter, the company said.