ITW Illinois Tool Works Inc

By Sabela Ojea

Illinois Tool Works said revenue increased in the second quarter but inventory reduction from its customer base hit its growth potential in the period.

The Glenview, Ill.-based industrial products and equipment manufacturer on Tuesday posted a net profit of $754 million, or $2.48 a share, up from $738 million, or $2.37 a share, for the same period a year earlier.

Revenue rose 1.6% to $4.07 billion, missing analysts expectations of $4.14 billion.

The business generated $705 million in free cash flow, improving from $420 million as of June 30, 2022.

Resilient demand in many of the company's industrial end markets was partially offset by inventory-reduction efforts by end customers and channel partners in response to stabilizing supply chain performance, Chairman and Chief Executive Officer E. Scott Santi said. This will remain a factor for Illinois Tool Works for the next several quarters, he said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

August 01, 2023 08:42 ET (12:42 GMT)

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