ITW 3Q EPS Beats, Revenue Falls - Analyst Blog
23 Octubre 2012 - 5:30AM
Zacks
Illinois Tool Works
Inc. (ITW) reported its financial results for the third
quarter 2012 on October 23. The company’s earnings per share from
continuing operations, adjusted for divestment impact, were $1.09.
Results came to 3 cents above the Zacks Consensus Estimate of $1.06
and within management’s guidance range of $1.03-$1.11.
EPS including the divestment impact of 3 cents was $1.12,
representing a 12% year-over-year increase.
Revenue
Operating revenue in the third quarter decreased 1.7% year over
year to $4,501 million and also failed to surpass the Zacks
Consensus Estimate of $4,571 million. The year-over-year decline
was greater than a 1% decline to 1% growth expectation of
management.
Of the total revenue, base revenue in the quarter grew 0.9% year
over year, registering a 3.9% increase in North American and 2.7%
decline in international revenues. Acquisitions added 1.4% while
currency translation negatively impacted revenue growth by 4.1%.
On a segmental basis, Transportation revenue (19.1% of total
revenue) declined 2.2% year over year; Power Systems &
Electronics (18.1%) grew 4.6%; Industrial Packaging (13.3%)
plummeted 4.6%; Food Equipment (10.9%) went down by 4.0% while
Construction (10.6%) decreased 7.2%; Polymers & Fluids (6.8%)
dived south by 7.3%; Decorative Surfaces (5.9%) decreased by 5.7%
and All Other (15.6%) jumped 4.1%.
Margins
Cost of goods sold plummeted 3.6% year over year in the quarter and
represented 63.4% of total revenue; down from 64.7% in the year-ago
quarter. Selling, administrative and R&D expenses, as a
percentage of total revenue, stood at 18.0%. Operating margin in
the quarter was 17.0%, up 140 basis points year over year.
Balance Sheet
Exiting the third quarter, Illinois Tool Works’ cash and cash
equivalents increased 21.4% sequentially to approximately $2,054.0
million. Long-term debt, net of current portion also registered a
sequential increase from $3,468.0 million in the previous quarter
to $4,572 million in the third quarter 2012.
Cash Flow
Net cash flow from operating activities in the quarter was $635.0
million, down from $787.0 million in the year-ago quarter while
capital expenditure increased 8.4% to $90.0 million. Free cash flow
was approximately $545.0 million in the third quarter versus $704.0
million in the comparable quarter last year.
In the third quarter, the company distributed $169 million as
dividends and repurchased shares worth $416 million.
Outlook
For the fourth quarter 2012, management anticipates a weak
international market with currency translation still playing a
negative role. Hence, total revenue growth range for the full year
was revised to a 0%-1% growth as against 1%-3% expected earlier.
Earnings per share for the full year is expected to range within
the band of $4.06 to $4.14 versus $4.03-$4.19 projected
earlier.
Revenue growth in the fourth quarter is expected to be within
(1%)-(4%) and earnings per share to be roughly in the range of
86-94 cents .
Illinois Tool Works is one of the leading manufacturers of
industrial products and equipment. The company’s chief competitors
include Cooper Industries plc (CBE),
General Electric Co. (GE), and Manitowoc
Co. Inc. (MTW).
We currently maintain a Neutral recommendation on the stock.
COOPER INDS PLC (CBE): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
MANITOWOC INC (MTW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Cooper (NYSE:CBE)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Cooper (NYSE:CBE)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
Real-Time news about Cooper Industries, Plc (Ireland) (New York Stock Exchange): 0 recent articles
Más de Cooper Artículos de Noticias