Illinois Tool Works (ITW) FY2017 results: revenue $14.3 billion, up 5.3% on the year
Illinois Tool Works Inc. (ITW) reported revenue of $14.3 billion for fiscal 2017, the year ended 31 December 2017, up 5.3% on the year before. Net income was $1.7 billion, down 17.1%, and diluted earnings per share $4.86. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2019.
Revenue
$14.3 billion
+5.3% on the year
FY2010FY2017
Operating margin
24.3%
22.5% a year earlier
FY2010FY2017
Net income
$1.7 billion
-17.1% on the year
FY2010FY2017
Diluted EPS
$4.86
-14.7% on the year
FY2010FY2017
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Revenue
14,314
13,599
13,405
+5.3%
Cost of revenue
8,309
7,896
7,888
+5.2%
Gross profit
6,005
5,703
5,517
+5.3%
Gross margin
42.0%
41.9%
41.2%
Research and development
225
223
218
+0.9%
Operating income
3,485
3,056
2,867
+14.0%
Operating margin
24.3%
22.5%
21.4%
Interest expense
260
237
226
+9.7%
Pre-tax income
3,270
2,908
2,719
+12.4%
Income tax
1,583
873
820
+81.3%
Effective tax rate
48.4%
30.0%
30.2%
Net income
1,687
2,035
1,899
-17.1%
Net margin
11.8%
15.0%
14.2%
Diluted EPS
$4.86
$5.70
$5.13
-14.7%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Operating cash flow
2,402
2,302
2,299
+4.3%
Capital expenditure
297
273
284
+8.8%
Free cash flow
2,105
2,029
2,015
+3.7%
Free cash flow margin
14.7%
14.9%
15.0%
Cash from investing
-251
-532
-210
Cash from financing
-1,674
-2,255
-2,526
Depreciation and amortisation
n/a
n/a
475
Share-based compensation
36.0
39.0
41.0
-7.7%
Buybacks
1,000
2,000
2,002
-50.0%
Dividends paid
941
821
742
+14.6%
Dividend per share
$2.86
$2.40
$2.07
+19.2%
Diluted shares, weighted
347m
357m
370m
-2.9%
Shares outstanding at period end
342m
347m
364m
-1.6%
Balance sheet
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Shareholders' equity
4,589
4,259
5,228
+7.7%
Debt
8,328
7,827
7,422
+6.4%
Other liabilities
3,863
3,115
3,079
+24.0%
Total liabilities and equity
16,780
15,201
15,729
+10.4%
Fixed assets
1,778
1,652
1,577
+7.6%
Goodwill
4,752
4,558
4,439
+4.3%
Intangible assets
1,272
1,463
1,560
-13.1%
Cash and equivalents
3,094
2,472
3,090
+25.2%
Receivables
2,628
2,357
2,203
+11.5%
Inventory
1,220
1,076
1,086
+13.4%
Other assets
2,036
1,623
1,774
+25.4%
Total assets
16,780
15,201
15,729
+10.4%
10-K for the year ended 31 December 2017, filed 15 February 2019: the filing.