Q2 2024 Illinois Tool Works Inc Earnings Call Transcript
Key Points
- Record second quarter operating margin of 26.2%, an improvement of 140 basis points.
- Operating income grew 4.5% to a second quarter record of $1.05 billion.
- GAAP EPS increased to $2.54, up from $2.48 last year.
- Strong margin performance led to an increase in full-year margin guidance to 26.5% to 27%.
- Specialty products segment showed significant strength with organic revenue growth of 7%.
- Second quarter revenues were approximately $50 million below expectations due to moderating demand.
- Organic revenue was down in three segments: Welding, Test & Measurement, and Construction.
- Full-year EPS guidance was lowered by 1% due to lower market demand.
- Free cash flow conversion was 75%, slightly below the historical conversion rate of 80%.
- North America saw a 2% decline in organic growth, driven by declines in Welding and Automotive segments.
Good morning. My name is Audra and I will be your conference operator today. (Operator instructions)
Thank you. Erin Linnihan, Vice President of Investor Relations, you may begin your. conference.
Thank you, Audra. Good morning, and welcome to ITWs second quarter 2024 conference call. Today, I'm joined by our President and CEO, Chris O'Herlihy; and Senior Vice President and CFO, Michael Larson. During today's call, we will discuss ITW second quarter financial results and provide an update on our outlook for full year 2024.
Slide 2 is a reminder that this presentation contains forward looking statements. We refer you to the companyâs 2023 Form 10-K and subsequent reports filed with the SEC for more detail about important risks that could cause actual results to differ materially from our expectations.
This presentation uses certain non GAAP measures and a reconciliation of those measures to the most directly comparable GAAP measures is contained in the press
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