Illinois Tool Works Inc. (NYSE:ITW) Rings In Steps Aimed At Increasing SHV Post $3.2 B Asset Sale


Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – Illinois Tool Works Inc. (NYSE:ITW) reported on 1st May that it had successfully completed its previously announced sale transaction of its “Industrial Packaging Segment” to “The Carlyle Group. From this sale exercise, the diversified machinery manufacturer raised $3.2 billion as proceeds. It is important to note here that way back in September of 2013, the firm had announced the launch an aggressive share buyback program as per the terms of which it had decided to buy back 50 million shares in a pre-emptive move to offset the dilution in the value of the shares which has occurred due to the selloff of the business unit. The share buyback is expected to be stepped up going forward and is scheduled to end on 30th June this year.

In the same week, Illinois Tool Works Inc. (NYSE:ITW) announced the dividend payout plan for the current quarter. Its board of directors decided to payout a dividend of 41 cents per share on july 8th to all share holders on board as of 30th June. For the full year, the cash dividend payout adds up to $1.68 per share.

These strong moves by the company to increase share holder value and streamline its business comes on the back of a strong showing in its 1Q14 results which were announced on 22nd April. Revenue for the full quarter came in at $3.6 billion, which translates to a 4 percent increase over 1Q13. Its operating income went up 16 percent to reach $667 million for the same quarter. Illinois Tool Works Inc. (NYSE:ITW) reported a 15 percent increase in its earnings per share to reach $1.01, while its operating margins went up 18.7 percent in the same period. On the back of the solid build up in the company operations the firm went on to increase its guidance for the full year to 15 cents and hopes to bring in $4.55 EPS for the full year.

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