Global Fastener News

ITW Fastener Sales Growth Slows

Jason Sandefur

Despite declines in housing and auto production, ITW reported revenue at its North American Engineered Products, including fasteners, increased 2.9% to $943.4 million during the fourth quarter of 2006, largely due to a 7.8% revenue contribution from acquisitions. Base revenues fell 5%, while operating income declined 8.5% to $143.6 million.
Full-year segment revenue in 2006 increased 9.4%, while operating income grew 8.3%. Auto base revenues dropped 9% in Q4, which included a 20% decline at Ford and a 14% dip at GM.
In 2007 ITW forecasts revenue from the Big 3 will decrease 10% in the first quarter, followed by mid single-digit declines in the next two quarters.
Q4 revenue at International Engineered Products, including fasteners, increased 13.9% to $824.7 million, including a 5.9% gain in base revenue. Operating income increased 13.5% to $134.7 million. Segment revenue in 2006 grew 6.2%, with operating income gaining 6%.
Consolidated Q4 revenue at ITW grew 12% to $3.64 billion, while net income gained 10% to $439.3 million. Overall revenue in 2006 increased 10% to $14.05 billion, while net income improved 15% to $1.72 billion. ITW completed a record 53 acquisitions in 2006 totaling $1.7 billion of annualized revenues.
In 2007 ITW expects to acquire companies with annualized revenues of $800 million to $1.2 billion. The company forecasted a share repurchases of up to $700 million and restructuring costs of $30 million to $50 million. Web: itw.com �2007 FastenerNews.com