ITW's Electronics Unit's Q2 Sales Drop
GLENVIEW, IL – Illinois Tool Works' Test & Measurement and Electronics business unit saw June quarter sales fall 8.5% to $542 million.
The operating margin dipped 200 basis points to 13.7%, while operating income was $74 million. Organic sales were down 9.1% for the period.
The unit includes Speedline Technologies, Vitronics Soltec, Kester Solder and other leading electronics assembly brands.
Overall, ITW's second-quarter revenues were $4.2 billion, down 5.5% year-over-year. Net income was $465 million, a decrease of 47.2% compared to the same period in 2012.
For the first six months of 2013, revenues were $8.2 billion, down 6.7% year-over-year. Net income was $819 million, a drop of 40.1% compared to the first six months last year.
By geography, North American organic revenues decreased 1%, largely due to modest end market softness in the industrial packaging, polymers and fluids, and welding segments, as well as the drop in the electronics assembly business. International revenues increased 1.1%, with European organic revenues decreasing 1%. Asia Pacific organic revenues increased 2.6%, with China and Australia/New Zealand organic revenues growing 13.5% and 2.1%, respectively.
The Automotive OEM segment led the company in organic growth, increasing 12% versus worldwide auto build growth of 3%.
