ITW reports 3Q earnings up 9 percent

GLENVIEW - Illinois Tool Works reported third quarter 2015 earnings were up 9 percent as growth in its automotive OEM, food equipment and construction products offset declines elsewhere.

Third quarter earnings were $1.39 per diluted share, the company reported. The manufacturing company noted impact from foreign currency differences affected the overall earnings by 12 cents per share.

Revenue in the automotive OEM sector organic grew by 5 percent, outpacing a flat global industry, while construction products revenue increased 4 percent, driven by 7 percent growth in North America and 5 percent growth in Asia Pacific. Food Equipment organic revenue increased 3 percent due to 6 percent growth in North America.

"ITW delivered another strong quarter of margin expansion and earnings per share growth," said E. Scott Santi, chairman and chief executive officer. "In the quarter, ITW set records for operating margin and after-tax return on invested capital and grew EPS by 9 percent. In addition, free cash flow conversion was very strong at 126 percent.

"Due to ITW's unique business model and proven track record of operational execution, the company is well positioned to continue to deliver differentiated performance in both the current environment and over the long-term," he added.

The company reduced its 2015 full-year earnings per share guidance by 5 cents, or 1 percent at the midpoint to reflect current demand levels. The updated range of $5.05 to $5.15 is a year-over-year increase of 9 percent at the midpoint. Excluding the negative currency impact, full-year EPS would be up 18 percent at the midpoint.