GLENVIEW, IL -- Illinois Tool Works today reported third-quarter revenues fell 19.8% year-over-year to $3.58 billion as demand began to show improvement.

For the period, operating income was $483.6 million, and operating margins were 13.5%, up from 9.9% sequentially. 

Base revenues fell 17.9% versus a year ago, 21.6% in North America and 13.8% elsewhere. Acquisitions added 3.6% to revenues and currency translations cost 5.6%. By comparison, base revenues were down 22.2% in the second quarter versus the year-ago period.

The Power Systems and Electronics segment sales fell 34.6%, while PC board fabrication base revenues dropped 42.3% in the third quarter versus a 59.2% decline in the second quarter. Operating margins were 17.2%, up 190 basis points sequentially. The unit includes Speedline Technologies, Kester Solder, Vitronics Soltec and other leading brands. 

For the quarter, cash flow from operations was $516 million, driven by strong improvement in margins and reductions in working capital. The firm took $31 million in restructuring expenses in the quarter, and expects to incur between $25 million and $40 million worth of restructuring in the fourth quarter.

"We continue to be very pleased with the company's overall operating performance amid an environment of generally weak end-markets," said David B. Speer, ITW's chairman and chief executive.

ITW guided for a fourth-quarter revenue range of -1% to 5% versus the third quarter.