ITW said that in Q1 2024 it changed the method used to value inventory at certain U.S. businesses from LIFO to FIFO, and recorded the pre-tax cumulative effect of $117 million as a reduction in cost of revenue.

1. 01

   ITW said that in Q1 2024 it changed the method used to value inventory at certain U.S. businesses from LIFO to FIFO, and recorded the pre-tax cumulative effect of $117 million as a reduction in cost of revenue.

2. 02

   The company's operating income was $1.1 billion, up 15.9%. Excluding the $117 million effect of the LIFO accounting method change, operating income rose 3.8%. Operating margin was 28.4%, up 420 basis points. Excluding the 300 basis points effect of the LIFO change, operating margin rose 120 basis points.

3. 03

   The company said organic revenue declined 0.6% in Q1. North America fell 3.5%, Europe, Middle East and Africa rose 1.3%, Asia Pacific rose 5.6%, and China rose 15.3%.

4. 04

   ITW said it held $959 million in cash and cash equivalents as of March 31, 2024, and had no borrowings outstanding under its $3.0 billion revolving credit facility. It repurchased about 1.4 million shares for about $375 million in Q1 2024.

Key figures

Quarter ended March 31, 2024

Revenue

$4.0B

Operating income

$1.1B

Net income

$819M

EPS

$2.73

Operating cash flow

$589M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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