GLENVIEW, IL – Illinois Tool Works reported third quarter test & measurement and electronics revenue of $489 million, down 4.5% year-over-year.

Operating income for the segment was $116 million, a decrease of 10.8% compared to the third quarter of 2019.

Total third quarter revenue was $3.3 billion, down 4.9% compared to the same period last year. ITW reported total third quarter net income of $582 million, down 11.8% year-over-year. Operating income was $789 million, a decrease of 9.1%.

ITW’s free cash flow during the quarter was $631 million, 108% of net income.

“We saw solid recovery progress in many of the end markets we serve in the third quarter, as evidenced by our revenue being up sequentially 29% versus second quarter. Our people around the world responded by leveraging our proprietary business model to provide excellent service to our customers, while keeping themselves and their coworkers safe. These efforts and our third quarter financial results support the decisions we made early in the pandemic to provide full compensation and benefits support to all of our ITW team members, to focus on positioning the company for full participation in the recovery, and to remain invested in the key initiatives supporting the execution of our long-term enterprise strategy,” said E. Scott Santi, chairman and CEO. “I am very proud of how the ITW team is managing through this challenging period, and I thank all of my ITW colleagues around the world for their continued exceptional efforts and dedication.”

“In the face of the unprecedented challenges and circumstances brought about by the global pandemic, our strong operational and financial performance over the last several quarters provides further evidence ITW is a company that has both the enduring competitive advantages and the resilience necessary to deliver consistent upper tier performance in any economic environment. Looking ahead, we remain focused on delivering strong results across a range of economic scenarios, while continuing to execute on our long-term strategy to achieve and sustain ITW’s full-potential performance.”

For the nine months ended Sept. 30, test & measurement and electronics revenue was $1.4 billion, down 8.9% year-over-year. Operating income was $354 million, down 8.5%.

For the nine-month period, total revenue was $9.1 billion, a decrease of 14.5% year-over-year. Net income was $1.5 billion, down 22% compared to the same period of 2019. Operating income was $2 billion, down 22.5%.

On May 5, ITW suspended annual guidance for 2020 due to uncertainties regarding the duration and severity of the Covid-19 pandemic.

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