Industrial products and equipment manufacturer Illinois Tool Works reported its 2021 second quarter financial results on Friday, and like many similar suppliers, it showed major year-over-year sales and profit gains compared with a year earlier at the height of the pandemic's business impacts.
ITW posted total Q2 sales of $3.68 billion, up 43.3 percent year-over-year, with organic sales up 37 percent. Sequentially sales improved 3.7 percent from Q1, when daily organic sales were up 8 percent.
All seven of ITW's business segments had double-digit organic sales growth year-over-year in Q2. Automotive OEM led the way with 84 percent growth, followed by Food Equipment at 46 percent. Welding, Test & Measurement and Electronics, Construction Products, and Polymers & Fluids had organic growth between 28 to 33 percent, while Specialty Products grew 17 percent.
Geographically, organic growth was 36 percent in North America, 50 percent in Europe and 20 percent in Asia Pacific.
"As expected, the impact of Automotive OEM customers adjusting production schedules to account for the well-publicized shortage of several components reduced ITW’s revenues by approximately $60 million or two percentage points in the quarter," the company said Friday.
ITW said pricing actions it took essentially offset raw material cost increases on a dollar-for-dollar basis, and it expects that to remain as such through the remainder of the year.
The Glenview, IL-based company had Q2 operating profit of $893 million, essentially doubling the $449 million it had a year earlier and trailing the $905 million it had in Q1. Q2 operating margin of 24.3 percent jumped 680 basis points year-over-year and trailed Q1's 25.5 percent.
ITW's total Q2 net profit was $775 million, dwarfing the $319 million it had a year earlier and beating Q1's $671 million.
“In the second quarter, we saw continued improvement in both the breadth and pace of the recovery, with organic revenue growth at the segment level ranging from 17 to 84 percent,” said E. Scott Santi, ITW chairman and CEO.
Looking ahead, ITW is expecting 2021 full-year organic sales growth of 11 to 13 percent, up from the 10 to 12 percent growth issued in the company's Q1 report.