Printer Friendly

ILLINOIS TOOL WORKS REPORTS 1993 THIRD QUARTER AND FIRST NINE MONTHS FINANCIAL RESULTS

 GLENVIEW, Ill., Oct. 21 /PRNewswire/ -- Illinois Tool Works, Inc. today reported third quarter 1993 operating revenues of $779.5 million, an increase of 10 percent over 1992 third quarter operating revenues of $710.6 million.
 Operating income was $98.4 million, an increase of 8 percent over last year. Net income in the 1993 third quarter was $50.9 million which represents a 4 percent increase over 1992 third quarter. Earnings per share for the 1993 third quarter was 45 cents compared with 44 cents for the same period last year.
 For the first nine months of 1993 operating revenues were $2.4 billion, an increase of 12 percent over 1992 first nine months operating revenues of $2.1 billion. Operating income in the 1993 first nine months was $286.8 million, an increase of 7 percent over operating income of $267.5 million for the same period in 1992. Net income the first nine months of 1993 was $147.8 million which is an increase of 5 percent over the first nine months of 1992 net income of $140.5 million.
 Earnings per share for the first nine months of 1993 and 1992 were $1.31 and $1.26 respectively.
 As a result of the new 1993 income tax law, the third quarter tax rate was raised to 39.5 percent in order to achieve an annual effective tax rate of 38.5 percent. This tax rate increase resulted in a reduction in earnings per share of 1 cent for the third quarter. The effect of foreign currency exchange rates and the new accounting rules for retiree healh care (SFAS 106) in the third quarter of 1993 compared with the same period in 1992 reduced earnings per share by 4 cents. Cash flow during the quarter allowed debt to be reduced by $90 million which decreased ITW's debt-to-capital ratio below 30 percent.
 Domestically, revenues and operating income increased due to strong automotive and construction markets and the Miller acquisition. The continued slow European ecomony was the primary cause for declines in international revenues and operating income. For the first nine months, this resulted in a 16 cents earnings per share decline largely due to the revenue shortfall. Improved penetration in the European appliance market along with substantial improvements in the finishing systems business moderated these declines. The European economy continues to be a challenge.
 In the Engineered Components' Segment revenue increases were primarily due to the Miller acquisition. In the Industrial Systems and Consumables' Segment, European industrial and consumer packaging businesses contributed to lower operating income compared to 1992 third quarter.
 ITW is a multinational manufacturer of highly engineered components and industrial systems with annual revenues exceeding $3 billion. The company has 250 operations in 33 countries and employs 18,000 people.
 ILLINOIS TOOL WORKS INC.
 (In thousands except per share data)
 THREE MONTHS ENDED NINE MONTHS ENDED
 SEPT. 30, SEPT. 30,
 SUMMARY OF INCOME 1993 1992 1993 1992
 Operating Revenues $ 779,536 $ 710,591 $ 2,358,876 $ 2,097,193
 Operating costs 528,658 471,345 1,596,151 1,389,242
 Selling, admin,
 and R&D expenses 152,489 148,558 475,971 440,417
 Operating Income 98,389 90,688 286,754 267,534
 Interest expense (9,268) (10,325) (27,326) (35,136)
 Retiree healthcare
 amortization (1,742) --- (5,226) ---
 Other income
 (expense) (3,233) (1,238) (13,930) (5,865)
 Income Before
 Income Taxes 84,146 79,125 240,272 226,533
 Income Taxes 33,200 30,000 92,500 86,000
 Net Income $ 50,946 $ 49,125 $ 147,772 $ 140,533
 Net Income Per Share
 of Common Stock $0.45 $0.44 $1.31 $1.26
 Average shares
 outstanding during
 the period 112,748 111,771 112,664 111,693
 SUMMARY OF FINANCIAL POSITION SEPT. 30 JUNE 30, DEC. 31,
 1993 1993 1992
 ASSETS
 Cash and equivalents $ 22,470 $ 52,297 $ 31,193
 Trade receivables 558,240 591,634 $ 492,202
 Inventories 426,973 435,154 400,605
 Deferred income taxes 58,396 56,899 33,136
 Prepaids and other
 current assets 57,084 55,677 47,711
 TOTAL CURRENT ASSETS 1,123,163 1,191,661 1,004,847
 Plant and equipment 1,199,555 1,193,259 1,073,333
 Less: accumulated
 depreciation (644,425) (622,728) (549,217)
 Net Plant and Equipment 555,130 570,531 524,116
 Goodwill 366,078 365,183 356,616
 Investment in leveraged
 leases 60,232 60,890 61,065
 Other assets 265,563 270,029 257,543
 Total assets $2,370,166 $2,458,294 $2,204,187
 LIABILITIES & STOCKHOLDERS' EQUITY
 Short-term debt $142,037 $234,145 $ 83,261
 Accounts payable & accrued
 expenses 392,851 404,084 338,646
 Cash dividends payable 0 13,530 13,442
 Income taxes 28,458 26,842 77,381
 TOTAL CURRENT LIABILITIES 563,346 678,601 512,730
 Long-term debt 378,765 376,593 251,979
 Other liabilities & credits 83,153 85,428 45,669
 Deferred income taxes 113,702 110,787 54,137
 Common stock 162,300 161,073 150,944
 Earnings reinvested in the
 business 1,105,094 1,054,146 1,201,537
 Common stock held
 in treasury (1,955) (1,955) (1,960)
 Equity adj. from foreign
 currency translation (34,327) (6,379) (10,849)
 TOTAL STOCKHOLDERS' EQUITY 1,231,200 1,206,885 1,339,672
 TOTAL LIABILITIES AND
 EQUITY $2,370,166 $2,458,294 $2,204,187
 -0- 10/21/93
 /CONTACT: Linda Wiliams of Illinois Tool Works, 708-657-4104/
 (ITW)


CO: Illinois Tool Works, Inc. ST: Illinois IN: MAC SU: ERN

LG -- NY077 -- 5338 10/21/93 14:36 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:939
Previous Article:INTELLICALL ANNOUNCES THIRD QUARTER EARNINGS AND RESULTS FOR NINE MONTHS ENDED SEPT. 30, 1993
Next Article:LASERMEDICS, INC., PRIVATE OFFERING NEARING $500,000
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters