ITW Reports Q4 EPS of $.79 vs. $.80

Illinois Tool Works Inc. ITW today reported fourth quarter 2010 diluted income per share from continuing operations of $0.79, a 19 percent decline compared to fourth quarter 2009 diluted income per share from continuing operations of $0.98. Excluding a discrete $0.37 favorable tax adjustment recorded in the 2009 fourth quarter, diluted income per share from continuing operations in the 2010 fourth quarter would have been 30 percent higher than the year-ago period. Fourth quarter 2010 total revenues of $4.169 billion were 11.0 percent higher than the year-earlier period. Organic or base revenues grew 9.1 percent in the quarter, with North American organic revenues increasing 8.9 percent and international organic revenues growing 9.2 percent. Acquisitions added 3.6 percent to revenues while currency translation negatively impacted revenues by 1.4 percent in the fourth quarter. Fourth quarter operating income of $579.5 million was 21.7 percent higher than the 2009 fourth quarter. Operating margins of 13.9 percent were 120 basis points higher than the year-ago period. Base businesses contributed 50 basis points to the operating margin improvement in the fourth quarter.