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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 28, 1999
ILLINOIS TOOL WORKS INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-4797 36-1258310
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation) Number) Identification No.)
3600 West Lake Avenue, Glenview, Illinois 60025
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 724-7500
None
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(Former name or former address, if changed since last report.)
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Item 5. Other events
Illinois Tool Works Inc. announced its 1998 fourth quarter and full year
results in the press release filed as Exhibits 99.1.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99.1 Form of press release dated January 28, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ILLINOIS TOOL WORKS INC.
Date: February 12, 1999 By: /s/ Jon C. Kinney
-----------------------------
Jon C. Kinney
Senior Vice President,
Chief Financial Officer
2
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EXHIBIT 99.1
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ITW NEWS RELEASE
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FOR IMMEDIATE RELEASE
ITW REPORTS RECORD 1998 FOURTH QUARTER
AND FULL YEAR RESULTS
GLENVIEW, IL (January 28, 1999) - Illinois Tool Works Inc.'s (ITW) net
income increased 15% in the 1998 fourth quarter to $184.3 million versus $160.2
million in 1997. Diluted earnings per share of 73 cents represents a 14%
increase compared with 1997. Operating revenues grew 12% to $1.51 billion from
$1.35 billion in 1997 while operating income was $296.7 million, up 19% for
1997's $249.2 million.
Full year 1998 net income was $672.8 million, 15% above 1997 net income of
$587.0 million. Diluted earnings per share for the same period were $2.67,
which represents an increase of 15%. Operating revenues for full year 1998 were
$5.65 billion, an 8% increase over 1997 operating revenues of $5.22 billion.
Operating income for the same time period was $1.08 billion, a 16% increase over
1997 full year 1998 operating income of $927.2 million.
W. James Farrell, chairman and chief executive officer of ITW stated, "our
decentralized organization has allowed us to stay focused on our customers and
effectively compete in a slower growth worldwide economic environment."
In the North American Engineered Products segment, fourth quarter 1998
revenues were up 20% compared with the fourth quarter of 1997 due to
acquisitions along with revenue growth in base construction and automotive
operations. Operating income increased 29% primarily as a result of
acquisitions, revenue growth and cost reductions.
Acquisitions in the International Engineered Products segments accounted
for the 1998 fourth quarter revenue growth of 12% and the operating income
increase of 3% compared with last year.
For the North American Specialty Systems segment, fourth quarter 1998
revenues decreased 2% verses 1997. Revenue decreases in the base business were
partially offset by the effect of acquisitions. Operating income increased 15%
as a result of increased operating efficiencies and acquisitions.
In the International Specialty Systems segment, fourth quarter revenues
increased 8% in 1998 versus 1997. Acquisitions more than offset the decrease in
base business revenues. Operating income decreased mainly due to nonrecurring
costs in 1998.
The Leasing & Investments segment contributed to the increase in operating
income for the 1998 fourth quarter due to an additional mortgaged-related
investment completed at year-end 1997 and gains on sales of certain investment
assets.
ITW is a global diversified manufacturer of highly engineered components
and industrial systems. The company has 400 operations in 34 countries and
approximately 29,200 employees.
Media contact: Linda Jones (847) 657-4104
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ILLINOIS TOOL WORKS INC.
(In thousands except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
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STATEMENT OF INCOME 1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Operating Revenues $1,509,225 $1,348,903 $ 5,647,889 $ 5,220,433
Cost of revenues 952,536 859,630 3,626,123 3,378,794
Selling, administrative, and R&D expenses 244,814 228,070 890,581 870,268
Amortization of goodwill & other intangibles 13,364 10,169 44,593 36,842
Amortization of retiree health care 1,826 1,826 7,306 7,306
---------- ---------- ---------- ----------
Operating Income 296,685 249,208 1,079,286 927,223
Interest expense (5,339) (3,468) (14,230) (19,383)
Other income (1,069) 6,432 (5,472) 16,511
---------- ---------- ---------- ----------
Income Before Income Taxes 290,277 252,172 1,059,584 924,351
Income taxes 106,000 92,000 386,800 337,400
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Net Income $ 184,277 $ 160,172 $ 672,784 $ 586,951
========== ========== =========== ==========
Net Income Per Share:
Basic $ 0.74 $ 0.64 $ 2.69 $ 2.35
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Diluted $ 0.73 $ 0.64 $ 2.67 $ 2.33
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Shares outstanding during the period:
Average 250,077 249,492 249,906 249,284
Average assuming dilution 252,494 252,017 252,443 251,760
DEC 31, DEC 31,
STATEMENT OF FINANCIAL POSITION 1998 1997
- ------------------------------- ------- -------
ASSETS
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Cash & equivalents $ 93,485 $ 185,856
Trade receivables 989,086 902,022
Inventories 581,755 522,996
Deferred income taxes 102,607 168,697
Prepaids and other current assets 67,540 79,071
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Total current assets 1,834,473 1,858,642
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Plant & equipment 2,417,432 2,117,391
Less: accumulated depreciation (1,429,883) (1,233,333)
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Net plant & equipment 987,549 884,058
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Investments 1,183,493 1,170,015
Goodwill 1,189,323 774,250
Deferred income taxes 417,361 379,738
Other assets 505,963 328,053
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$ 6,118,162 $ 5,394,756
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Short-term debt $ 406,707 $ 298,278
Accounts payable and accrued expenses 726,412 727,469
Cash dividends payable 37,519 29,952
Income taxes payable 51,371 102,181
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Total current liabilities 1,222,009 1,157,880
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Long-term debt 947,008 854,328
Other liabilities 611,110 576,094
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Total non-current liabilities 1,558,118 1,430,422
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Common stock 2,504 2,499
Additional paid-in capital 302,684 287,153
Income reinvested in the business 3,130,213 2,592,416
Common stock held in treasury (1,783) (1,833)
Cumulative translation adjustment (95,583) (73,781)
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Total stockholders' equity 3,338,035 2,806,454
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$ 6,118,162 $ 5,394,756
========== ==========
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