Circuits Assembly Online Magazine - ITW Reports Q4 Test & Measurement and Electronics Revenue Up 19%

GLENVIEW, IL – Illinois Tool Works reported fourth quarter Test & Measurement and Electronics revenue was $636 million, an increase of 19.1% year-over-year.

The business segment’s operating income for the quarter ended Dec. 31 was $168 million, an increase of 9.8% compared to the fourth quarter of 2020.

ITW’s total revenue for the fourth quarter grew 6% to $3.7 billion. Total net income was $609 million, down 5.1% year-over-year.

The company’s operating cash flow during the quarter was $774 million, and free cash flow was $695 million, with a conversion of 114% of net income.

For 2021, Test & Measurement and Electronics revenue increased 19.5% to $2.3 billion. Operating income for the segment grew 26.8% compared to 2020.

ITW’s total revenue for the year was up 15% to $14.5 billion, with organic growth of 12.3%. Net income was $2.7 billion, up 27.7%.

Operating cash flow for the year was $2.6 billion, and free cash flow was $2.3 billion, with a conversion of 84% of net income.

“In the fourth quarter, we saw continued strong growth momentum, as six of our seven segments delivered combined organic growth of 12%, while our Automotive OEM segment continued to be impacted by limitations on auto production due to component supply shortages,” said E. Scott Santi, chairman and CEO. “In what remains a very challenging and volatile operating environment, our teams around the world continue to do an exceptional job of delivering for our customers, responding decisively to rapidly rising input costs, and executing our ‘Win the Recovery’ strategy to accelerate profitable market penetration and organic growth across our portfolio.”

“I want to again thank all of my ITW colleagues for their exceptional dedication and commitment to serving our customers and executing our strategy with excellence. Their performance throughout 2021 provides another compelling proof point that ITW is a company that has the enduring competitive advantages, agility, and resilience necessary to consistently deliver top-tier performance in any environment.”