ITW Fastener Sales Decline
ITW Fastener Sales Decline
Jason Sandefur
Illinois Tool Works reported revenues for the Transportation segment, including fasteners, decreased 4.7% during the fourth quarter of 2008, with base revenues declining 20.3%.
“The fall off in base revenues was associated with dramatically lower North American and international auto builds in the quarter,” the company stated. In North America, total Detroit 3 and new domestic builds fell 26% while European builds declined 16%. As a result, North American and international automotive base revenues declined 26.5% and 21.7%.
Worldwide revenues for the Construction Products segment, including fasteners, decreased 21.9% in Q4, with base revenues declining 14.6%. North American construction base revenues fell 23.4% as North American housing starts dropped 41%. Construction international base revenues declined 10.5%, with European base revenues decreasing 16.9% and Asia-Pacific falling 1.6%.
Overall ITW revenue dropped 9.2% to $3.68 billion in Q4, while net income plunged 50% to $233.8 million. “The 2008 fourth quarter represented a significant change in economic conditions for the Company both in North America and internationally,” stated CEO David Speer. “We experienced dramatic declines in most of our worldwide end markets, especially in November and December.”
Full-year revenue grew 6.7% to $15.87 billion, with net income plunging 18% to $1.52 billion. Web: itw.com �2009 FastenerNews.com
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