ITW(ITW)2024-08-01 22:26Financial Performance - Operating revenue for Q2 2024 was 4.07 billion in Q2 2023, while year-to-date revenue was 8.09 billion in the same period last year[70]. - Operating revenue for Q2 2024 was 4,074 million, primarily due to unfavorable foreign currency effects and lower organic revenue[73]. - Year-to-date operating revenue reached 846 million in 2023, with organic revenue growth of 6.1%[99]. - Operating revenue for the second quarter of 2024 was 1,622 million in 2023, driven by a 1.9% organic revenue growth, partially offset by a 1.3% decline due to foreign currency translation[80]. - The company experienced a 0.8% decrease in operating revenue year-to-date due to foreign currency impacts, despite a 10.1% increase in operating income[74]. Cost and Expenses - Cost of revenue in Q2 2024 was 2.34 billion in Q2 2023, primarily due to lower revenue and foreign currency translation effects[70]. - Selling, administrative, and research and development expenses remained flat at 117 million as a reduction of cost of revenue in Q1 2024 due to the switch from LIFO to FIFO inventory accounting[67]. Profitability - Operating income increased by 4.5% to 1,010 million in Q2 2023, with an operating margin of 26.2%, up 140 basis points year-over-year[73]. - Year-to-date operating income reached 1,982 million in the same period last year, with an operating margin of 27.3%[74]. - Operating income increased by 19.7% to 267 million in the same period of 2023, resulting in an operating margin of 19.6%, up 320 basis points year-over-year[80]. - Operating income for the Welding segment fell by 8.0% to 167 million in Q2 2023, resulting in an operating margin decrease of 100 basis points to 32.9%[24]. Earnings and Shareholder Returns - Diluted earnings per share (EPS) for Q2 2024 was 5.27[75]. - The company repurchased approximately 1.6 million shares for about 750 million year-to-date[75]. - The company announced a new stock repurchase program on August 4, 2023, allowing for the repurchase of up to 4.2 billion remaining as of June 30, 2024[106]. Segment Performance - The Automotive OEM segment reported Q2 2024 operating revenue of 826 million in Q2 2023, with an operating income of 667 million in the second quarter of 2024, a 2.1% increase from 454 million in Q2 2024, with organic revenue increasing by 2.6%[91]. - The Construction Products segment experienced a 4.3% decrease in operating revenue to 571 million, down from 1,065 million compared to 862 million in cash and equivalents as of June 30, 2024, with no outstanding borrowings under its 8,473 million, an increase from $8,164 million as of December 31, 2023[115]. Tax and Regulatory - The effective tax rate for Q2 2024 was 24.4%, compared to 21.4% in Q2 2023, influenced by discrete income tax benefits related to stock-based compensation[74]. - The effective tax rate for the three months ended June 30, 2024, was 24.4%, compared to 23.6% for the same period in 2023[109]. Risk and Compliance - The company faces various risks that could materially affect its business, including geopolitical tensions and raw material price increases[122]. - The company has not disclosed any material non-public information to securities analysts, adhering to its fair disclosure policy[123]. - The company has not reported any outstanding legal proceedings as of the latest update[128].