×

ITW Provides Enterprise Strategy Update, Affirms Financial Performance Goals, and Provides Outlook for 2016

GLENVIEW, Ill., Dec. 04, 2015 (GLOBE NEWSWIRE) -- This morning, Illinois Tool Works Inc. (NYSE:ITW) will detail progress on the Company’s Enterprise Strategy at its annual Investor and Analyst Day in New York and initiate guidance for 2016.

At the meeting, ITW’s Senior Management Team will provide a progress update on ITW’s Enterprise Strategy to generate solid growth with best-in-class margins and returns on capital. As part of the strategy review, the Company will reiterate its 2017 performance goals:

  • Organic growth of 200 basis points or more above global GDP
  • 23+ percent operating margin
  • 20+ percent after-tax ROIC

For 2016, ITW anticipates earnings to be in the range of $5.35 to $5.55 per share, a year-over-year increase of 7 percent at the midpoint. Excluding the negative currency impact, EPS would be up 10 percent at the midpoint. Organic growth for 2016 is projected to be 1 to 3 percent, which includes an approximately 90 basis point impact from Product Line Simplification.

“Over the past three years, we have made excellent progress in the execution of our Enterprise Strategy and delivered strong financial results that keep us solidly on track to achieve our 2017 performance goals,” said Chairman and CEO, E. Scott Santi. “As we look ahead, we remain confident that the Company is well positioned to generate compelling total returns for our shareholders over the long-term.”

The presentation will begin at 9:00 a.m. ET and will conclude at 12:00 p.m. ET. The Company's webcast, featuring a synchronized slide show of management presentations, can be accessed via its website at www.itw.com. Interested participants should then access the investor information tab.

Forward-Looking Statement
The remarks made by ITW representatives at this meeting contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the expected impact and timing of strategic initiatives and related benefits, operating income and organic revenue growth, growth in operating margins and return on invested capital, the macro-economic environment, earnings per share, free operating cash flow, restructuring expenses and related benefits, exchange rates, the timing and impact of additional leverage, the timing and amount of share repurchases, and the Company's related forecasts. Forward-looking statements may be identified by the use of words such as "believe," "expect," "plans," "intends," "strategy," "prospects," "estimate," "project," "target," "anticipate," "guidance," and other similar words, and are subject to certain risks, uncertainties, and other factors which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company's expectations include those that are detailed in ITW's Form 10-Q for the third quarter of 2015.

Non-GAAP Measures
The Company will be using certain non-GAAP measures in talking about our performance. Refer to the appendix of the management presentation at the Company's website under the "Investor Relations" tab for additional information on these non-GAAP measures.

About ITW
ITW (NYSE:ITW) is a Fortune 250 global multi-industrial manufacturing leader with revenues totaling $14.5 billion in 2014. The Company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW has nearly 50,000 dedicated colleagues in operations around the world who thrive in the company’s unique decentralized and entrepreneurial culture. To learn more about the company and the ITW Business Model, visit www.itw.com.

Investors Contact: Aaron Hoffman 224.661.7429 ahoffman@itw.com Media Contact: Alison Donnelly 224.661.7427 adonnelly@itw.com

Source:Illinois Tool Works