GLENVIEWl, IL -- Illinois Tool Works reported first-quarter sales fell 24% year-over-year to $2.91 billion. The conglomerate reported a loss of $39.4 million, down from net income of $303.6 million a year ago.

For the period ended March 31, sales dropped 24% from $3.82 billion last year. The firm took impairment charges of $90 million and discrete tax charges of $28 million.

ITW is the parent company to Speedline Technologies, Kester Solder, Vitronics Soltec, Simco, Chemtronics and other leading electronics manufacturing suppliers.

The impairment charge of $90 million included $78 million for goodwill and $12 million for intangibles. The goodwill charge related to two larger businesses which have been acquired over the last few years, one of which was described as "a PC board fabrication business included in the Power Systems and Electronics segment," which based on the company website likely refers to Kester.

For the quarter, worldwide revenues for the Power Systems and Electronics segment fell 32.1%, with base revenues decreasing 31.9%. The PC board fabrication business unit's base revenues declined more than 50%. Segment operating margins were 6.2%, 15.1 points lower than a year ago.

During the period, overall company base revenues declined 23.3% versus a year ago, with North America decreasing 26.7%. Operating margins were 2%, down 13.2 points from a year ago. Free operating cash flow was $386 million, modestly lower than the first quarter of 2008. ITW spent $33 million on restructuring projects in the first quarter and expects to spend $60 million more in the second.

"The 2009 first quarter represented historic challenges for our company as end markets continued to weaken in North America, Europe and Asia-Pacific," said David B. Speer, chairman and chief executive. "As a result, we continued to take aggressive restructuring actions that we believe provide the important balance between near-term market conditions and investment in longer-term growth initiatives."

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