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ITW’s Q2 Strengthened by Electronics Unit |
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Written by Mike Buetow
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Friday, 18 July 2008 |
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GLENVIEW, IL – ITW’s second-quarter revenues rose 10.5% as higher returns from currency translation and acquisitions offset flat organic growth. Operating income rose 9%, and margins dropped 20 basis points.
For the quarter, acquisitions added 4.2% to revenue growth, while currency translation increased revenues by 6.4%. Base business revenue was flat.
Organic revenue rose 2.6% internationally and fell 1.8% in North America. Operating margins of 16.6% were down 20 basis points year-over-year. Organic businesses’ margins actually improved 30 basis points.
Power Systems and Electronics segment revenues were up 14.8%, 7.7% from base revenues, 3.7% from acquisitions and 3.4% from translation. Operating income grew 22.4%. Operating margins were 21.9%, up 140 basis points over last year. Base margins improved 210 basis points in the quarter. The Power Systems unit includes Kester, Vitronics and Speedline, among others. On a conference call with analysts, chairman and chief executive David B. Speer said, “Clearly that group alone stands out as being the strongest growth trajectory.” |
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