Illinois Tool Works (ITW) FY2018 results: revenue $14.8 billion, up 3.2% on the year
Illinois Tool Works Inc. (ITW) reported revenue of $14.8 billion for fiscal 2018, the year ended 31 December 2018, up 3.2% on the year before. Net income was $2.6 billion, up 51.9%, and diluted earnings per share $7.60. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2019.
Revenue
$14.8 billion
+3.2% on the year
FY2011FY2018
Operating margin
24.3%
24.3% a year earlier
FY2011FY2018
Net income
$2.6 billion
+51.9% on the year
FY2011FY2018
Diluted EPS
$7.60
+56.4% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
14,768
14,314
13,599
+3.2%
Cost of revenue
8,604
8,309
7,896
+3.6%
Gross profit
6,164
6,005
5,703
+2.6%
Gross margin
41.7%
42.0%
41.9%
Research and development
233
225
223
+3.6%
Operating income
3,584
3,485
3,056
+2.8%
Operating margin
24.3%
24.3%
22.5%
Interest expense
257
260
237
-1.2%
Pre-tax income
3,394
3,270
2,908
+3.8%
Income tax
831
1,583
873
-47.5%
Effective tax rate
24.5%
48.4%
30.0%
Net income
2,563
1,687
2,035
+51.9%
Net margin
17.4%
11.8%
15.0%
Diluted EPS
$7.60
$4.86
$5.70
+56.4%
$ 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
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
2,811
2,402
2,302
+17.0%
Capital expenditure
364
297
273
+22.6%
Free cash flow
2,447
2,105
2,029
+16.2%
Free cash flow margin
16.6%
14.7%
14.9%
Cash from investing
-325
-251
-532
Cash from financing
-3,964
-1,674
-2,255
Share-based compensation
40.0
36.0
39.0
+11.1%
Buybacks
2,000
1,000
2,000
+100.0%
Dividends paid
1,124
941
821
+19.4%
Dividend per share
$3.56
$2.86
$2.40
+24.5%
Diluted shares, weighted
337m
347m
357m
-2.8%
Shares outstanding at period end
328m
342m
347m
-3.9%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
3,258
4,589
4,259
-29.0%
Debt
7,379
8,328
7,827
-11.4%
Other liabilities
4,233
3,863
3,115
+9.6%
Total liabilities and equity
14,870
16,780
15,201
-11.4%
Fixed assets
1,791
1,778
1,652
+0.7%
Goodwill
4,633
4,752
4,558
-2.5%
Intangible assets
1,084
1,272
1,463
-14.8%
Cash and equivalents
1,504
3,094
2,472
-51.4%
Receivables
2,622
2,628
2,357
-0.2%
Inventory
1,318
1,220
1,076
+8.0%
Other assets
1,918
2,036
1,623
-5.8%
Total assets
14,870
16,780
15,201
-11.4%
10-K for the year ended 31 December 2018, filed 15 February 2019: the filing.