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Jun 30, 2020

ITW Q2 2020 Earnings Report

ITW's Q2 2020 performance demonstrated strength in managing the global pandemic's effects.

Key Takeaways

ITW reported a 29% decline in revenue, but managed to deliver $449 million in operating income and $681 million in free cash flow. The company's decentralized structure and flexible cost structure allowed it to reduce operating expenses by over $140 million.

Total revenue was $2.6 billion, with organic revenue declining by 27%.

Operating margin was 17.5%.

Operating income reached $449 million.

Free cash flow increased 12% to $681 million, representing a 213% conversion rate.

Total Revenue
$2.56B
Previous year: $3.61B
-29.0%
EPS
$1.01
Previous year: $2
-49.5%
Organic Revenue Growth
-27%
Gross Profit
$970M
Previous year: $1.51B
-35.8%
Cash and Equivalents
$1.81B
Previous year: $1.68B
+8.1%
Free Cash Flow
$681M
Previous year: $608M
+12.0%
Total Assets
$14.3B
Previous year: $15.2B
-6.1%

ITW

ITW

ITW Revenue by Segment

Forward Guidance

ITW suspended annual guidance for 2020 due to uncertainties regarding the duration and severity of the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income