GLENVIEW, IL – Illinois Tool Works reported fourth quarter Test & Measurement and Electronics revenue of $552 million, up 2.6% year-over-year.

Operating income for the segment was $155 million, an increase of 16.5% year-over-year.

For 2019, ITW’s electronics unit posted $2.1 billion in revenue, down 2.3% compared to 2018. Operating income for the year was $542 million, up 3.6%.

ITW’s total fourth quarter revenue of $3.5 billion, down 3.1% year-over-year. Free cash flow was $692 million, 114% of net income.

Total 2019 revenue was $14.1 billion, a decline of 4.5% compared to 2018. Free cash flow for the year increased 9% to $2.7 billion.

“The ITW team closed out 2019 with another quarter of strong execution and resilient financial performance,” said E. Scott Santi, chairman and CEO. “Despite near-term macro challenges, we grew earnings per share 9%, delivered 24.1% operating margin excluding higher restructuring expenses and improved after-tax return on invested capital 120 basis points to 28.9%.

“For the year, in a contracting industrial demand environment, including a 6% decline in global auto builds, ITW grew earnings per share 5%, excluding the impact of foreign currency headwinds, higher restructuring expenses and divestiture gains. We expanded operating margin to 24.4% excluding higher restructuring expenses, improved after-tax return on invested capital to 28.7%, increased free cash flow 9% and returned $2.8 billion to shareholders in the form of dividends and share repurchases.  Throughout 2019, we executed very well on the things within our control and continued to make meaningful progress on our path to full-potential performance through the implementation of our Finish the Job enterprise strategy agenda.”

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