GLENVIEW, IL -- Illinois Tool Works reported fourth quarter organic revenue at its Test & Measurement/Electronics unit fell 3% year-over-year while sequential demand was up 6%. 

Operating margin at the unit rose 300 basis points to 18.1% on $500 million in revenues for the period ended Dec. 31.

Operating income was $90 million, up from $82 million last year.

The Test & Measurement and Electronics unit includes such companies as Speedline Technologies, Kester Solder and Vitronics Soltec.

For the year, the conglomerate reported total revenues of $3.3 billion, down 6.5% primarily due to foreign currency translation. Organic revenue 0.6% for the year.

Test & Measurement/Electronics unit revenue was $1.97 billion, down from $2.2 billlion in 2014. Operating income was down 5.3% year-over-year to $322 million. 

"We are pleased with ITW’s strong performance in the quarter and for the year,” said chairman and chief executive E. Scott Santi." In the quarter, the company continued to deliver meaningful improvement in our EPS, operating margin, and return on invested capital metrics, and demand across our business portfolio held steady versus the third quarter. While demand for industrial equipment remains sluggish, we have seen stable underlying demand trends in both Welding and Test & Measurement/Electronics over the past two quarters.

Organic revenue for 2016 is projected to be up 1 to 3% , inline with current demand levels. 

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