ITW's Electronics Equipment Sales Slowed in Q4
GLENVIEW, IL -- Illinois Tool Works today reported fourth quarter sales at its Power Systems and Electronics unit of $737 million, down 1.2% from last year.
Operating income fell 16.5% to $122 million for the period ended Dec. 31.
The for year, the unit saw sales of $3.15 billion, up 5.5% over 2011. Operating income rose 6.2% to $643 million. Organic revenue was up 3.8% for the year; the remainder of the gains came from acquisitions.
The unit includes Speedline Technologies, Vitronics-Soltec and other major suppliers.
Overall revenues fell 2.3% year-over-year to $4.22 billion, despite double-digit growth in the conglomerate's worldwide automotive OEM sales. Without the impact of divestitures, total revenues would have grown approximately 2%. Base revenues increased 60 basis points, in line with company expectations. By region, organic revenues in North America grew 1.6%, fell 2.6% in Europe, and rose 3.7% in Asia Pacific.
ITW guided for modest growth for both North American and international geographies in 2013. Organic revenue is expected to grow 1% to 3%, and the firm expects to take $120 million to $140 million in restructuring charges for the year. For the first quarter, the company is forecasting total revenue growth of flat to -2%.
