News
ITASCA, IL -- Illinois Tool Works, the parent company of several leading electronics equipment and materials suppliers, reported fourth-quarter revenues fell 6% and operating income dropped 33% from last year.
For the quarter, margins fell 450 basis points to of 11.3% and operating cash flow was $509 million.
ITW's power systems and electronics segment revenues fell 9.6% and operating income
fell 27.7%. Base revenues -- sales from continuing operations -- were down 10.8%, primarily on a 9% drop in the company's welding businesses. Operating margins were 15.4%, down 380 basis points from the prior year period with base margins declining 220 basis points and
acquisitions diluting margins 130 basis points.
For the year, revenues increased 6.7% on acquisitions and favorable currency translations. Operating income was down 4.5% and margins were down 180 basis points to 14.7%. Free operating cash flow was $1.9 billion, or 123% of net income.
ITW is parent company to Speedline Technologies, Vitronics-Soltec, Chemtronics, Kester Solder and other electronics assembly suppliers.
As reported by Circuits Assembly in December, the electronics manufacturing company previously was expected to close in February.
In published reports, RPM chief executive Chuck Mann cited the loss of business from RPM’s two main customers, Advanced Energy and Plasmon. Those OEMs made up 55% of RPM's sales and have started outsourcing its work to China.
Mann is also COO of RAD Electronics, which acquired RPM in March 2008.
ELKHART, IN – CTS Corp. reported fourth-quarter net earnings fell 26% to $5.7 million on a 9% drop in sales. The results include restructuring and related costs.
TOKYO – Omron Corp. reported net sales for the nine months ended Dec. 31 decreased
10.6% year-over-year to 499 million yen. Operating income fell 61.4% to 16.7 million
yen during that time. Earnings before taxes fell 66.5% to 14,740 million yen,
and net income was down 69% to 9.1 million yen.
The company is forming a new division, headed by president and CEO Hisao Sakuta, responsible for ensuring that emergency measures and structural reforms spearheaded by the head offices are swiftly and steadily implemented. Those steps include withdrawing from unprofitable businesses, suspend large-scale investments, and implement further cost-cutting in order to reduce costs by 40 billion yen. The company will restructure its three control businesses (industrial automation, electronic components, and automotive electronic components) and consolidate global production bases.
US$1 = JPY 102.
TORONTO – Celestica Inc. announced fourth-quarter revenue fell 27% from last year to $1.94 billion. The GAAP net loss was $822.2 million, down from a GAAP net loss of $11.7 million last year, largely on goodwill writeoffs of $850.5 million.
