ITW Provides Strategy Update at 2017 Investor Day

GLENVIEW, Ill., Dec. 01, 2017 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. ITW today provided an update on the company's strategy which is focused on leveraging ITW's highly differentiated and proprietary Business Model to deliver consistent above-market organic growth with best-in-class margins and returns, and positioning the company as a highly valued core holding for long-term oriented investors.

Through the continued execution of its successful strategy, ITW is targeting the following annual performance goals for the five-year period from 2018 to 2022:

• 25+% operating margin;
• 20+% after-tax Return on Invested Capital;
• Organic growth of 3 to 5%;
• 35% incremental margin;
• 8 to 10% Earnings Per Share (EPS) growth;
• Free cash flow of 100+% of net income; and
• Dividend payout of approximately 50% of free cash flow by 2020 (vs. 43% currently)

"The combination of our powerful business model, diversified high quality business portfolio, and the ITW team's proven ability to execute have the company well-positioned to continue to deliver differentiated performance over the next five years, as reflected in our 2018 to 2022 annual performance goals," said Chairman and CEO, E. Scott Santi.

ITW also initiated 2018 guidance at the event and expects 2018 GAAP EPS to be in the range of $7.05 to $7.25, organic revenue growth of 3 to 4%, and operating margin of 25 to 25.5%.  Additionally, the company reaffirmed its 2017 full-year GAAP EPS guidance of $6.62 to $6.72, a year-over-year increase of 17% at the mid-point.

Forward-looking Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding diluted earnings per share, organic revenue growth, operating margin, free cash flow, effective tax rate and after-tax return on invested capital. These statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated. Such factors include those contained in ITW's Form 10-K for 2016.

About ITW
ITW ITW is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $13.6 billion in 2016. The company's seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW has more than 50,000 dedicated colleagues in operations around the world who thrive in the company's unique, decentralized and entrepreneurial culture. To learn more about the company and the ITW Business Model, visit www.itw.com.

Investor Contact: Mike Drazin 224.661.7433 or mdrazin@itw.com

Media Contact: Trisha Knych 224.661.7566 or tknych@itw.com