ITW Provides Strategy Update at 2016 Investor Day
December 02 2016 - 9:17AM
Illinois Tool Works Inc. (NYSE:ITW) today provided an update on the
company’s Enterprise Strategy, including the progress it has made
since introducing the strategy in 2012 and future performance
goals. The Enterprise Strategy was established to capitalize on the
performance power of ITW’s highly differentiated and proprietary
business model to generate solid growth with best-in-class margins
and returns on capital.
Through the continued execution of its strategy,
ITW expects to deliver the following performance goals by the end
of 2018 and beyond:
- Organic growth at 200 basis points or more above market;
- 25+ percent operating margin (previously 23+ percent);
- 20+ percent after-tax Return on Invested Capital;
- Free cash flow of 100+ percent of net income; and
- 12 to 14 percent total shareholder returns.
ITW also initiated 2017 guidance at the event and expects
earnings per share to be in the range of $6.00 to $6.20, up 9
percent year-over-year at the midpoint, as well as organic growth
between 1.5 to 3.5 percent. Additionally, the company reaffirmed
its 2016 guidance.“Even though ITW’s performance is nearing
best-in-class levels, we see significant opportunity for further
improvement before the Company is operating at its full potential,”
said Chairman and CEO, E. Scott Santi. “Through our focus on
leveraging the ITW Business Model to its full potential, we are
positioning ITW to deliver highly differentiated long term
performance and returns.”
Forward-looking StatementThis release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding diluted earnings per share,
organic revenue growth, operating margin, free cash flow and
after-tax return on invested capital. These statements are subject
to certain risks, uncertainties and other factors that could cause
actual results to differ materially from those anticipated. Such
factors include those contained in ITW's Form 10-K for 2015 and
Form 10-Q for the third quarter of 2016.
About ITWITW (NYSE:ITW) is a Fortune 200 global
multi-industrial manufacturing leader with revenues totaling $13.4
billion in 2015. 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 more
than 51,000 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: Mike Drazin 224.661.7433 mdrazin@itw.com
Media Contact: Mallory Ramp 224.661.7431 mramp@itw.com
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