GLENVIEW, IL -- Illinois Tool Works today reported second-quarter revenues at its Power Systems and Electronics segment increased 7.7% on improvement in its electronics assembly businesses.

The segment's organic revenues grew 5.2% to $810 million, in part from the company's worldwide welding businesses, which rose 8.8%. Operating margins rose 60 basis points to 21.2%, helping boost operating income 11% to $172 million. The segment includes such brands as Speedline Technologies and Vitronics-Soltec.

For the period ended June 30, the conglomerate's overall revenues rose 0.9% to $4.66 billion. Organic revenues rose 2.3%, with North America leading the way with a 5.3% increase, while Europe decreased 1.7% and Asia Pacific up 1.8% (China declined 0.5%). Operating income grew 8.3% to $770 million. Operating margins improved 110 basis points versus the year-ago period to 16.5% on favorable raw material prices.

ITW lowered its forecast for revenue growth from continuing operations to 1 to 3% from a prior forecast of 5 to 7%, citing expected continued sluggish demand in international markets. It guided for third quarter revenue to range from a 1% drop to a 1% gain.

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