- Revenue of $4.0 billion, an increase of 0.5%
- Operating income of $1.1 billion, an increase of 9%
- Operating margin of 26.5%, an increase of 200 bps
- GAAP EPS of $2.55, an increase of 9%
- Narrowing full year GAAP EPS guidance range to $9.65 to $9.85 per share
GLENVIEW, Ill., Oct. 24, 2023 (GLOBE NEWSWIRE) — Illinois Tool Works Inc. (NYSE: ITW) today reported its third quarter 2023 results.
“The strength and resilience of ITW’s proprietary business model and high-quality diversified portfolio once again drove strong operational execution and financial performance in the third quarter. Quarterly operating margin expanded 200 basis points year over year to 26.5 percent, free cash flow grew 40 percent, and GAAP EPS grew nine percent to $2.55,” said E. Scott Santi, Chairman and Chief Executive Officer. “Organic revenue growth was two percent on an equal days’ basis in the quarter. Looking ahead at the balance of the year, while we anticipate some impact from ongoing automotive industry labor actions on our Automotive OEM segment in the fourth quarter, the company remains well-positioned to deliver another strong year of differentiated overall performance in 2023.”
Third Quarter 2023 Results
Third quarter revenue of $4.0 billion increased 0.5 percent with organic revenue growth of 0.2 percent, as divestitures reduced revenue by 1.2 percent and foreign currency translation added 1.5 percent. On an equal days’ basis, organic growth was two percent. End customer and channel partner inventory reduction efforts associated with supply chain normalization reduced organic growth by an estimated 1 to 1.5 percent in the quarter.
GAAP EPS increased nine percent to $2.55 and the effective tax rate was 23.8 percent. Operating income grew nine percent to $1.1 billion. Operating margin of 26.5 percent expanded 200 basis points as enterprise initiatives contributed 140 basis points. Operating cash flow was $982 million, and free cash flow was $856 million, an increase of 40 percent, with a conversion rate to net income of 111 percent. During the quarter, the company repurchased $375 million of its own shares and raised its dividend seven percent to an annualized $5.60 per share.
2023 Guidance
ITW is narrowing the range of its full year GAAP EPS guidance from $9.55 to $9.95 per share to a range of $9.65 to $9.85 per share, which includes a $0.12 per share adjustment for the estimated fourth quarter impact of ongoing automotive industry labor actions. The company is projecting total revenue growth of one to two percent with organic growth of two to three percent based on current levels of demand exiting the third quarter, and the estimated fourth quarter impact of ongoing automotive industry labor actions. Combined divestitures and foreign currency translation are expected to reduce revenue by one percent. Operating margin is projected to be in the range of 25 to 25.5 percent, an improvement of 150 basis points at the mid-point, with enterprise initiatives contributing more than 100 basis points. Free cash flow is projected to be greater than 100 percent of net income and the company plans to repurchase approximately $1.5 billion of its own shares. The expected tax rate is in the range of 22.5 to 23.5 percent.
Non-GAAP Measures
This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information.
Forward-looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, restructuring expenses and related benefits, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected access to liquidity sources, expected capital allocation, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, the potential impact of automotive industry labor actions, and the company’s 2023 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those anticipated. Such factors include those risk factors contained in ITW’s Form 10-K for 2022 and subsequent reports filed with the SEC.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2022. 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’s approximately 46,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com
| ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED) |
|||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| In millions except per share amounts | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Operating Revenue | $ | 4,031 | $ | 4,011 | $ | 12,124 | $ | 11,961 | |||||||
| Cost of revenue | 2,319 | 2,371 | 7,004 | 7,120 | |||||||||||
| Selling, administrative, and research and development expenses | 615 | 624 | 1,980 | 1,935 | |||||||||||
| Amortization and impairment of intangible assets | 27 | 33 | 88 | 102 | |||||||||||
| Operating Income | 1,070 | 983 | 3,052 | 2,804 | |||||||||||
| Interest expense | (67 | ) | (52 | ) | (196 | ) | (147 | ) | |||||||
| Other income (expense) | 10 | 26 | 40 | 64 | |||||||||||
| Income Before Taxes | 1,013 | 957 | 2,896 | 2,721 | |||||||||||
| Income Taxes | 241 | 230 | 656 | 594 | |||||||||||
| Net Income | $ | 772 | $ | 727 | $ | 2,240 | $ | 2,127 | |||||||
| Net Income Per Share: | |||||||||||||||
| Basic | $ | 2.55 | $ | 2.36 | $ | 7.38 | $ | 6.85 | |||||||
| Diluted | $ | 2.55 | $ | 2.35 | $ | 7.36 | $ | 6.83 | |||||||
| Cash Dividends Per Share: | |||||||||||||||
| Paid | $ | 1.31 | $ | 1.22 | $ | 3.93 | $ | 3.66 | |||||||
| Declared | $ | 1.40 | $ | 1.31 | $ | 4.02 | $ | 3.75 | |||||||
| Shares of Common Stock Outstanding During the Period: | |||||||||||||||
| Average | 301.9 | 308.8 | 303.4 | 310.6 | |||||||||||
| Average assuming dilution | 303.0 | 309.7 | 304.5 | 311.6 | |||||||||||
| ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED) |
|||||||
| In millions | September 30, 2023 | December 31, 2022 | |||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and equivalents | $ | 990 | $ | 708 | |||
| Trade receivables | 3,163 | 3,171 | |||||
| Inventories | 1,799 | 2,054 | |||||
| Prepaid expenses and other current assets | 336 | 329 | |||||
| Assets held for sale | — | 8 | |||||
| Total current assets | 6,288 | 6,270 | |||||
| Net plant and equipment | 1,904 | 1,848 | |||||
| Goodwill | 4,828 | 4,864 | |||||
| Intangible assets | 682 | 768 | |||||
| Deferred income taxes | 455 | 494 | |||||
| Other assets | 1,238 | 1,178 | |||||
| $ | 15,395 | $ | 15,422 | ||||
| Liabilities and Stockholders’ Equity | |||||||
| Current Liabilities: | |||||||
| Short-term debt | $ | 1,248 | $ | 1,590 | |||
| Accounts payable | 580 | 594 | |||||
| Accrued expenses | 1,588 | 1,728 | |||||
| Cash dividends payable | 421 | 400 | |||||
| Income taxes payable | 145 | 147 | |||||
| Liabilities held for sale | — | 1 | |||||
| Total current liabilities | 3,982 | 4,460 | |||||
| Noncurrent Liabilities: | |||||||
| Long-term debt | 6,818 | 6,173 | |||||
| Deferred income taxes | 464 | 484 | |||||
| Noncurrent income taxes payable | 151 | 273 | |||||
| Other liabilities | 976 | 943 | |||||
| Total noncurrent liabilities | 8,409 | 7,873 | |||||
| Stockholders’ Equity: | |||||||
| Common stock | 6 | 6 | |||||
| Additional paid-in-capital | 1,569 | 1,501 | |||||
| Retained earnings | 26,823 | 25,799 | |||||
| Common stock held in treasury | (23,493 | ) | (22,377 | ) | |||
| Accumulated other comprehensive income (loss) | (1,902 | ) | (1,841 | ) | |||
| Noncontrolling interest | 1 | 1 | |||||
| Total stockholders’ equity | 3,004 | 3,089 | |||||
| $ | 15,395 | $ | 15,422 | ||||
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| Three Months Ended September 30, 2023 | |||||||
| Dollars in millions | Total Revenue | Operating Income | Operating Margin | ||||
| Automotive OEM | $ | 799 | $ | 151 | 18.9 | % | |
| Food Equipment | 678 | 185 | 27.3 | % | |||
| Test & Measurement and Electronics | 698 | 167 | 23.8 | % | |||
| Welding | 468 | 147 | 31.6 | % | |||
| Polymers & Fluids | 458 | 129 | 28.1 | % | |||
| Construction Products | 522 | 155 | 29.9 | % | |||
| Specialty Products | 414 | 115 | 27.8 | % | |||
| Intersegment | (6 | ) | — | — | % | ||
| Total Segments | 4,031 | 1,049 | 26.0 | % | |||
| Unallocated | — | 21 | — | % | |||
| Total Company | $ | 4,031 | $ | 1,070 | 26.5 | % | |
| Nine Months Ended September 30, 2023 | ||||||||
| Dollars in millions | Total Revenue | Operating Income | Operating Margin | |||||
| Automotive OEM | $ | 2,421 | $ | 418 | 17.3 | % | ||
| Food Equipment | 1,967 | 536 | 27.2 | % | ||||
| Test & Measurement and Electronics | 2,101 | 501 | 23.8 | % | ||||
| Welding | 1,451 | 471 | 32.5 | % | ||||
| Polymers & Fluids | 1,364 | 357 | 26.2 | % | ||||
| Construction Products | 1,574 | 454 | 28.9 | % | ||||
| Specialty Products | 1,260 | 333 | 26.4 | % | ||||
| Intersegment | (14 | ) | — | — | % | |||
| Total Segments | 12,124 | 3,070 | 25.3 | % | ||||
| Unallocated | — | (18 | ) | — | % | |||
| Total Company | $ | 12,124 | $ | 3,052 | 25.2 | % | ||
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| Q3 2023 vs. Q3 2022 Favorable/(Unfavorable) | ||||||||||||||||
| Operating Revenue | Automotive OEM | Food Equipment | Test & Measurement and Electronics | Welding | Polymers & Fluids | Construction Products | Specialty Products | Total ITW | ||||||||
| Organic | 3.8 | % | 6.3 | % | (3.9 | )% | (2.4 | )% | 3.4 | % | (2.1 | )% | (5.6 | )% | 0.2 | % |
| Acquisitions/ Divestitures |
— | % | (1.8 | )% | — | % | — | % | (5.7 | )% | — | % | (2.3 | )% | (1.2 | )% |
| Translation | 2.2 | % | 2.7 | % | 1.5 | % | 0.6 | % | (0.8 | )% | 0.9 | % | 2.4 | % | 1.5 | % |
| Operating Revenue | 6.0 | % | 7.2 | % | (2.4 | )% | (1.8 | )% | (3.1 | )% | (1.2 | )% | (5.5 | )% | 0.5 | % |
| Q3 2023 vs. Q3 2022 Favorable/(Unfavorable) | ||||||||||||||||
| Change in Operating Margin | Automotive OEM | Food Equipment | Test & Measurement and Electronics | Welding | Polymers & Fluids | Construction Products | Specialty Products | Total ITW | ||||||||
| Operating Leverage | 70 bps | 110 bps | (100) bps | (40) bps | 70 bps | (30) bps | (110) bps | — | ||||||||
| Changes in Variable Margin & OH Costs | 100 bps | (40) bps | (10) bps | 50 bps | 200 bps | 430 bps | 40 bps | 200 bps | ||||||||
| Total Organic | 170 bps | 70 bps | (110) bps | 10 bps | 270 bps | 400 bps | (70) bps | 200 bps | ||||||||
| Acquisitions/ Divestitures |
— | 10 bps | — | — | 20 bps | — | 60 bps | 10 bps | ||||||||
| Restructuring/Other | (30) bps | 20 bps | (30) bps | — | (10) bps | 20 bps | 20 bps | (10) bps | ||||||||
| Total Operating Margin Change | 140 bps | 100 bps | (140) bps | 10 bps | 280 bps | 420 bps | 10 bps | 200 bps | ||||||||
| Total Operating Margin % * | 18.9% | 27.3% | 23.8% | 31.6% | 28.1% | 29.9% | 27.8% | 26.5% | ||||||||
| * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets | 30 bps | 40 bps | 160 bps | 10 bps | 170 bps | 10 bps | 30 bps | 70 bps ** | ||||||||
| ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.07) on GAAP earnings per share for the third quarter of 2023. | ||||||||||||||||
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| YTD 2023 vs. YTD 2022 Favorable/(Unfavorable) | ||||||||||||||||
| Operating Revenue | Automotive OEM | Food Equipment | Test & Measurement and Electronics | Welding | Polymers & Fluids | Construction Products | Specialty Products | Total ITW | ||||||||
| Organic | 9.2 | % | 9.6 | % | 0.9 | % | 2.7 | % | 0.9 | % | (3.1 | )% | (4.7 | )% | 2.8 | % |
| Acquisitions/ Divestitures |
— | % | (1.3 | )% | — | % | — | % | (5.3 | )% | — | % | (1.5 | )% | (1.0 | )% |
| Translation | (0.4 | )% | 0.2 | % | (0.7 | )% | — | % | (1.5 | )% | (1.1 | )% | 0.4 | % | (0.4 | )% |
| Operating Revenue | 8.8 | % | 8.5 | % | 0.2 | % | 2.7 | % | (5.9 | )% | (4.2 | )% | (5.8 | )% | 1.4 | % |
| YTD 2023 vs. YTD 2022 Favorable/(Unfavorable) | ||||||||||||||||
| Change in Operating Margin | Automotive OEM | Food Equipment | Test & Measurement and Electronics | Welding | Polymers & Fluids | Construction Products | Specialty Products | Total ITW | ||||||||
| Operating Leverage | 180 bps | 180 bps | 20 bps | 50 bps | 10 bps | (50) bps | (100) bps | 60 bps | ||||||||
| Changes in Variable Margin & OH Costs | (190) bps | 70 bps | 60 bps | 150 bps | 120 bps | 360 bps | 20 bps | 110 bps | ||||||||
| Total Organic | (10) bps | 250 bps | 80 bps | 200 bps | 130 bps | 310 bps | (80) bps | 170 bps | ||||||||
| Acquisitions/ Divestitures |
— | 20 bps | — | — | 30 bps | — | 40 bps | 10 bps | ||||||||
| Restructuring/Other | 70 bps | — | (20) bps | — | (40) bps | (20) bps | (30) bps | — | ||||||||
| Total Operating Margin Change | 60 bps | 270 bps | 60 bps | 200 bps | 120 bps | 290 bps | (70) bps | 180 bps | ||||||||
| Total Operating Margin % * | 17.3% | 27.2% | 23.8% | 32.5% | 26.2% | 28.9% | 26.4% | 25.2% | ||||||||
| * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets | 20 bps | 50 bps | 170 bps | 10 bps | 180 bps | 10 bps | 60 bps | 70 bps ** | ||||||||
| ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.22) on GAAP earnings per share for the first nine months of 2023. | ||||||||||||||||
| ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED) AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) |
|||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| Dollars in millions | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Numerator: | |||||||||||||||
| Net income | $ | 772 | $ | 727 | $ | 2,240 | $ | 2,127 | |||||||
| Discrete tax benefit related to the second quarter 2023 | — | — | (20 | ) | — | ||||||||||
| Discrete tax benefit related to the second quarter 2022 | — | — | — | (51 | ) | ||||||||||
| Interest expense, net of tax(1) | 51 | 39 | 150 | 112 | |||||||||||
| Other (income) expense, net of tax(1) | (8 | ) | (20 | ) | (31 | ) | (49 | ) | |||||||
| Operating income after taxes | $ | 815 | $ | 746 | $ | 2,339 | $ | 2,139 | |||||||
| Denominator: | |||||||||||||||
| Invested capital: | |||||||||||||||
| Cash and equivalents | $ | 990 | $ | 774 | $ | 990 | $ | 774 | |||||||
| Trade receivables | 3,163 | 3,031 | 3,163 | 3,031 | |||||||||||
| Inventories | 1,799 | 2,007 | 1,799 | 2,007 | |||||||||||
| Net assets held for sale | — | 75 | — | 75 | |||||||||||
| Net plant and equipment | 1,904 | 1,705 | 1,904 | 1,705 | |||||||||||
| Goodwill and intangible assets | 5,510 | 5,557 | 5,510 | 5,557 | |||||||||||
| Accounts payable and accrued expenses | (2,168 | ) | (2,177 | ) | (2,168 | ) | (2,177 | ) | |||||||
| Debt | (8,066 | ) | (7,628 | ) | (8,066 | ) | (7,628 | ) | |||||||
| Other, net | (128 | ) | (330 | ) | (128 | ) | (330 | ) | |||||||
| Total net assets (stockholders’ equity) | 3,004 | 3,014 | 3,004 | 3,014 | |||||||||||
| Cash and equivalents | (990 | ) | (774 | ) | (990 | ) | (774 | ) | |||||||
| Debt | 8,066 | 7,628 | 8,066 | 7,628 | |||||||||||
| Total invested capital | $ | 10,080 | $ | 9,868 | $ | 10,080 | $ | 9,868 | |||||||
| Average invested capital(2) | $ | 10,237 | $ | 10,004 | $ | 10,239 | $ | 9,985 | |||||||
| Net income to average invested capital(3) | 30.1 | % | 29.1 | % | 29.2 | % | 28.4 | % | |||||||
| After-tax return on average invested capital(3) | 31.9 | % | 29.9 | % | 30.5 | % | 28.6 | % | |||||||
(1) Effective tax rate used for interest expense and other (income) expense for the three months ended September 30, 2023 and 2022 was 23.8% and 23.9%, respectively. Effective tax rate used for interest expense and other (income) expense for the nine months ended September 30, 2023 and 2022 was 23.4% and 23.7%, respectively.
(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.
(3) Returns for the three months ended September 30, 2023 and 2022 were converted to an annual rate by multiplying the calculated return by 4. Returns for the nine months ended September 30, 2023 and 2022 were converted to an annual rate by dividing the calculated return by 3 and multiplying it by 4.
A reconciliation of the tax rate for the nine months ended September 30, 2023, excluding the second quarter 2023 discrete tax benefit of $20 million related to amended 2021 U.S. taxes, is as follows:
| Nine Months Ended | ||||||
| September 30, 2023 | ||||||
| Dollars in millions | Income Taxes | Tax Rate | ||||
| As reported | $ | 656 | 22.7 | % | ||
| Discrete tax benefit related to the second quarter 2023 | 20 | 0.7 | % | |||
| As adjusted | $ | 676 | 23.4 | % | ||
A reconciliation of the tax rate for the nine months ended September 30, 2022, excluding the second quarter 2022 discrete tax benefit of $51 million related to the resolution of a U.S. tax audit, is as follows:
| Nine Months Ended | |||||
| September 30, 2022 | |||||
| Dollars in millions | Income Taxes | Tax Rate | |||
| As reported | $ | 594 | 21.8 | % | |
| Discrete tax benefit related to the second quarter 2022 | 51 | 1.9 | % | ||
| As adjusted | $ | 645 | 23.7 | % | |
| AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) | |||
| Twelve Months Ended | |||
| Dollars in millions | December 31, 2022 | ||
| Numerator: | |||
| Net income | $ | 3,034 | |
| Discrete tax benefit related to the fourth quarter 2022 | (32 | ) | |
| Discrete tax benefit related to the second quarter 2022 | (51 | ) | |
| Interest expense, net of tax(1) | 156 | ||
| Other (income) expense, net of tax(1) | (196 | ) | |
| Operating income after taxes | $ | 2,911 | |
| Denominator: | |||
| Invested capital: | |||
| Cash and equivalents | $ | 708 | |
| Trade receivables | 3,171 | ||
| Inventories | 2,054 | ||
| Net assets held for sale | 7 | ||
| Net plant and equipment | 1,848 | ||
| Goodwill and intangible assets | 5,632 | ||
| Accounts payable and accrued expenses | (2,322 | ) | |
| Debt | (7,763 | ) | |
| Other, net | (246 | ) | |
| Total net assets (stockholders’ equity) | 3,089 | ||
| Cash and equivalents | (708 | ) | |
| Debt | 7,763 | ||
| Total invested capital | $ | 10,144 | |
| Average invested capital(2) | $ | 10,017 | |
| Net income to average invested capital | 30.3 | % | |
| After-tax return on average invested capital | 29.1 | % | |
(1) Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2022 was 23.2%.
(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.
A reconciliation of the 2022 effective tax rate excluding the fourth quarter 2022 discrete tax benefit of $32 million related to the utilization of capital loss carryforwards and the second quarter 2022 discrete tax benefit of $51 million related to the resolution of a U.S. tax audit is as follows:
| Twelve Months Ended | |||||
| December 31, 2022 | |||||
| Dollars in millions | Income Taxes | Tax Rate | |||
| As reported | $ | 808 | 21.0 | % | |
| Discrete tax benefit related to the fourth quarter 2022 | 32 | 0.8 | % | ||
| Discrete tax benefit related to the second quarter 2022 | 51 | 1.4 | % | ||
| As adjusted | $ | 891 | 23.2 | % | |
| FREE CASH FLOW (UNAUDITED) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| Dollars in millions | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net cash provided by operating activities | $ | 982 | $ | 713 | $ | 2,500 | $ | 1,537 | |||||||
| Less: Additions to plant and equipment | (126 | ) | (101 | ) | (324 | ) | (256 | ) | |||||||
| Free cash flow | $ | 856 | $ | 612 | $ | 2,176 | $ | 1,281 | |||||||
| Net income | $ | 772 | $ | 727 | $ | 2,240 | $ | 2,127 | |||||||
| Net cash provided by operating activities to net income conversion rate | 127 | % | 98 | % | 112 | % | 72 | % | |||||||
| Free cash flow to net income conversion rate | 111 | % | 84 | % | 97 | % | 60 | % | |||||||
| ADJUSTED NET INCOME PER SHARE – DILUTED (UNAUDITED) | |||
| Twelve Months Ended | |||
| December 31, 2022 | |||
| As reported | $ | 9.77 | |
| Net impact of gains from two divestitures in the fourth quarter 2022 | (0.60 | ) | |
| As adjusted | $ | 9.17 | |
| Media Contact | Investor Relations |
| Tel: 224.661.7451 | Karen Fletcher |
| mediarelations@itw.com | Tel: 224.661.7433 |
| investorrelations@itw.com |
