GLENVIEW, IL -- Illinois Tool Works today reported third quarter revenues at its Test & Measurement and Electronics unit were $536 million, up 2.2% from a year ago.

The results include a 70 basis point loss due to currency translation effects; without it, the unit saw revenues rise 2.9%.

Operating incomes was $132 million, and operating margin was 24.7% for the period.

The ITW EAE unit includes such brands as MPM, Camelot, Electrovert and Kester Solder.

Total revenue was flat as 2% organic growth was offset by the unfavorable impact of foreign currency translation. Organic revenue growth increased 4% in North America, offset by a 1% decline in Europe and a 2% decline in Asia Pacific. As expected, ongoing product line simplification activities reduced organic revenue growth by 70 basis points.

“Despite some near-term market challenges in the third quarter, the ITW team delivered 11 %pearnings growth and EPS at the high end of our guidance range. We improved operating margin by 30 basis points to 24.6%,” said E. Scott Santi, chairman and chief executive Officer. “Overall market conditions in North America remained solid this quarter, while auto production in Europe and China and demand levels in several international end-markets served by our Specialty and Polymers & Fluids segments softened versus the first half of the year and were below our expectations heading into the quarter. Our business model continues to generate strong free cash flow, as evidenced by 17% free cash flow growth in the quarter, supporting our ability to raise our dividend 28% and repurchase $500 million of our shares in the quarter.”

“While we expect that these near-term market challenges will continue in the fourth quarter, we remain firmly on track to deliver our full-year EPS guidance with 15 percent earnings growth at the mid-point,” added Santi.

For the fourth quarter the company expects essentially flat revenue as the impact of foreign currency translation, at current exchange rates, is expected to offset organic growth of 1 to 2% based on current levels of demand.