3decades

MIRA INFORM REPORT

Report No. :	507647
Report Date :	10.05.2018

IDENTIFICATION DETAILS

Name :	ILLINOIS TOOL WORKS INC.

Registered Office :	Corporation Trust Center 1209 Orange St, Wilmington, DE 19801, USA

Country :	United States

Financials (as on) :	31.12.2017

Date of Incorporation :	1912

Legal Form :	Corporation

Line of Business :	Manufactures and Sells of Industrial Products and Equipment Worldwide.

No. of Employees :	27,000 (50.000 Worldwide)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exist

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $59,500. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for more than 50% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and former President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through FY 2018, the direct costs of the wars will have totaled more than $1.9 trillion, according to US Government figures.

In March 2010, former President OBAMA signed into law the Patient Protection and Affordable Care Act (ACA), a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the former president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. The Fed ended its purchases during the summer of 2014, after the unemployment rate dropped to 6.2%, inflation stood at 1.7%, and public debt fell below 74% of GDP. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With continued low growth, the Fed opted to raise rates several times since then, and in December 2017, the target rate stood at 1.5%.

In December 2017, Congress passed and President Donald TRUMP signed the Tax Cuts and Jobs Act, which, among its various provisions, reduces the corporate tax rate from 35% to 21%; lowers the individual tax rate for those with the highest incomes from 39.6% to 37%, and by lesser percentages for those at lower income levels; changes many deductions and credits used to calculate taxable income; and eliminates in 2019 the penalty imposed on taxpayers who do not obtain the minimum amount of health insurance required under the ACA. The new taxes took effect on 1 January 2018; the tax cut for corporations are permanent, but those for individuals are scheduled to expire after 2025. The Joint Committee on Taxation (JCT) under the Congressional Budget Office estimates that the new law will reduce tax revenues and increase the federal deficit by about $1.45 trillion over the 2018-2027 period. This amount would decline if economic growth were to exceed the JCT’s estimate.

Source : CIA

STATUTORY INFORMATION

Legal Name:

ILLINOIS TOOL WORKS INC.

Trade Name:

INSTRON

ID:

568702

Date Created:

1912

Date Incorporated:

June 19, 1961

Legal Address:

Corporation Trust Center 1209 Orange St

Wilmington, DE 19801, USA

Operative Address:

155 Harlem Avenue

Glenview, IL 60025

United States

Telephone:

513.891.7485

Fax:

513.891.4092

Legal Form:

Corporation

Email:

sales@vortec.com

Registered in:

DELAWARE

Website:

www.itw-air.com

Contact:

Mr. E. Scott Santi - Chairman, Chief Executive Officer and President

Staff:

27,000 (50.000 worldwide)

Activity:

SIC Code: 3089, Plastics Products, NEC

NAICS Code: 326199, All Other Plastics Product Manufacturing

History:

Illinois Tool Works Inc. was founded in 1912 and is headquartered in Glenview, Illinois.

Key Developments:

Illinois Tool Works Inc. Presents at REV2018 Conference, Apr-24-2018

Apr 4 18

Illinois Tool Works Inc. Presents at REV2018 Conference, Apr-24-2018 . Venue: Hard Rock Hotel, Las Vagas, Nevada, United States.

Illinois Tool Works Inc., Q1 2018 Earnings Call, Apr 26, 2018

Mar 28 18

Illinois Tool Works Inc., Q1 2018 Earnings Call, Apr 26, 2018

PRINCIPAL ACTIVITY

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide.

Products/Services description:

It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment produces warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment, maintenance, and repair services. The Test & Measurement and Electronics segment produces equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; metal arc welding consumables and related accessories; and metal jacketing and other insulation products for various industrial and commercial applications. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment produces engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the food and beverage, consumer durables, general industrial, printing and publishing, and industrial capital goods markets.

Brands:

INSTRON

Sales are:

Wholesale

Clients:

Minera Real De Angeles SA De Cv

Industrias Michelin Sa De Cv

Thunderbolt de Mexico Sa de Cv

Turtle & Hughes Mexico S De Rl de Cv

Flextronics Mfg. Aguascalientes SA De Cv

Solectron Manufactura de Mexico Sa de Cv

Metalinspec SA De Cv

Electro Optica SA De Cv

Quimica Suiza Industrial Del Peru Sa

Samisa Servicios Aereos Y Maritimos Internacionales Sa.

Procter And Gamble

Suppliers:

Karanataka Cnc Tech Pvt Ltd

Deko Endüstriyel Ambalaj San. Tic. Ltd. Şti

Operations area:

National And International

The company imports from

INDIA

TURKEY

The company exports to

MEXICO

PERU

ECUADOR

UNITES STATES

The subject employs

27,000 employees (50.000 worldwide)

Payments:

Regular

LOCATION

Headquarters :

155 Harlem Avenue

Glenview, IL 60025

United States

Comments on Address:

The address provided in the order corresponds to a branch location, as it is the headquarters address of the Instron Division.

Branches:

The company has several branches. Some of them are:

ILLINOIS TOOL WORKS INC

825 UNIVERSITY AVENUE, NORWOOD, MA, 02062, USA

ILLINOIS TOOL WORKS INC

10125 CARVER ROAD, CINCINNATI, OH 45242, USA

ILLINOIS TOOL WORKS INC

1 MISSOURI RESEARCH PARK D

SAINT CHARLES, MO 63304, USA

ILLINOIS TOOL WORKS INC

2155 TRAVERSEFIELD DR

TRAVERSE CITY, MI 49686, USA

ILLINOIS TOOL WORKS INC

3700 W LAKE AVE

GLENVIEW, IL 60025, USA

ILLINOIS TOOL WORKS INC

8125 COBB CENTER DR

KENNESAW, GA 30152, USA

Subsidiaries

We attach the company´s list of subsidiaries.

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

Market Capital:

49.049B

Outstanding Shares:

338.76M

Shareholders:

Direct Holders
Name	Shares
SMITH DAVID BYRON JR	112,592
MORRISON ROBERT S	99,741
SANTI ERNEST SCOTT	87,565
CROWN SUSAN	47,907
SKINNER JAMES A	46,908
STROBEL PAMELA B	30,565
MARTINDALE STEVEN L	30,510
MARTEL ROLAND M	26,222
NAGARAJAN SUNDARAM	23,847
Top Institutional Holders
Holder	Shares
Briar Hall Management LLC	25,919,834
Vanguard Group, Inc. (The)	23,605,967
State Farm Mutual Automobile Insurance Co	23,154,700
Blackrock Inc.	20,507,932
Northern Trust Corporation	15,192,646
State Street Corporation	14,027,690
Wells Fargo & Company	8,997,431
Price (T.Rowe) Associates Inc	8,564,746
Capital Research Global Investors	7,026,216
JP Morgan Chase & Company	5,403,017
Top Mutual Fund Holders
Holder	Shares
Vanguard Total Stock Market Index Fund	6,390,794
Vanguard 500 Index Fund	4,905,480
Investment Company Of America	4,800,000
SPDR S&P 500 ETF Trust	3,943,179
Vanguard Institutional Index Fund-Institutional Index Fund	3,412,737
Vanguard Specialized-Dividend Appreciation Index Fund.	2,959,750
MFS Series Trust I-MFS Value Fund	2,682,440
Price (T.Rowe) Growth Stock Fund Inc.	2,262,185
iShares Core S&P 500 ETF	1,999,723
Fidelity 500 Index Fund	1,905,976

Management:

Mr. E. Scott Santi - Chairman, Chief Executive Officer and President

Mr. Michael M. Larsen - Chief Financial Officer and Senior Vice President

Mr. Christopher A. O’Herlihy - Vice Chairman

Mr. Sundaram Nagarajan - Executive Vice President of Automotive OEM Segment

FINANCIAL INFORMATION

We attach company’s last financial statements.

Illinois Tool Works Inc. reported unaudited earnings results for the first quarter ended March 31, 2018.

For the quarter, the company’s operating revenue was USD 3,744 million against USD 3,471 million a year ago.

Operating income was USD 903 million against USD 809 million a year ago. Income before tax was USD 849 million against USD 749 million a year ago.

Net income was USD 652 million against USD 536 million a year ago. Diluted net income per share was USD 1.90 against USD 1.54 a year ago. Net cash provided by operating activities was USD 538 million against USD 463 million a year ago.

Free cash flow was USD 444 million against USD 399 million a year ago. Additions to plant and equipment were USD 94 million against USD 64 million a year ago.

The company is raising its 2018 full-year guidance by USD 0.15 at the mid-point to a range of USD 7.60 to USD 7.80 per share, up from prior guidance of USD 7.45 to USD 7.65 per share, reflecting 17% EPS growth year on year at the midpoint. The company expects organic growth of three to 4%, operating margin in the range of 25% to 25.5%, free cash flow at or above 100% of net income, and an effective tax rate of approximately 25% for the year. For the second quarter 2018, the company expects earnings to be in the range of USD 1.90 to USD 2.00 per share, up 15% at the mid-point, with organic growth of three to four percent.

LEGAL FILINGS

PATENTS

FASTENING TOOL WITH BLIND GUIDE WORK CONTACT TIP

Publication number: 20130175314

Abstract: A blind guide work contact tip for mounting to a drive probe of a fastening tool is shaped in a manner which allows for an angled nail placement, such as 45 degree into a workpiece. The blind guide work contact is a one-piece attachment which is fitted around the existing drive probe and includes a body and two wings which extend therefrom forming a channel through which a fastener passes into the workpiece. The body has a work surface with a peak and sloped slides adjacent each side of the peak at approximately 45 degrees. The sloped surfaces allows the blind guide work contact tip to better access corners and angled spaces than previous work contact tips. The work contact tip also has a flat portion at the peak of the work surface so as to not inhibit face nailing.

Type: Application

Filed: March 1, 2013

Publication date: July 11, 2013

Applicant: ILLINOIS TOOL WORKS INC.

Inventor: Illinois Tool Works Inc.

FASTENER FEEDER DELAY FOR FASTENER DRIVING TOOL

Publication number: 20130037593

Abstract: A fastener driving tool includes a power source including a cylinder, a piston with a driver blade reciprocating in the cylinder, a tool nose associated with the power source for receiving the driver blade for driving fasteners fed into the nose, and a magazine housing a supply of the fasteners. A magazine feeder mechanism is associated with the magazine for sequentially feeding fasteners into the nose, and the feeder mechanism includes a reciprocating feed piston. A conduit is connected between a port in the cylinder and the feed mechanism for diverting combusted gas for activating the feed piston. The port is disposed in the cylinder a specified distance below a piston prefiring position, the distance being reflective of a delay of activating the feed piston until the drive piston finishes a driving stroke and begins a return to the prefiring position.

Type: Application

Filed: October 8, 2012

Publication date: February 14, 2013

Applicant: ILLINOIS TOOL WORKS INC.

Inventor: ILLINOIS TOOL WORKS INC.

SYMMETRICAL OVERLAPPING JAW FRONT ACTION SEALING TOOL

Publication number: 20130327117

Abstract: A crimping tool for applying a deformable crimp seal onto overlapping layers of strap material includes a head and pairs of jaws disposed in the tool head and operably mounted thereto. Each pair includes opposingly oriented jaw elements. A shear extends between and is operably connected to the jaw elements. The jaw elements have an inwardly oriented crimping portion with a tip having a tapered portion terminating at a free end. A pair of handles are operably connected to the jaw elements and to one another. A side plate is operably connected to the jaw elements and shears and includes a centrally disposed slotted opening. When the tool is in a closed position the jaw elements of each pair align with one another and the free ends of the opposingly oriented jaw element tips overlap in a direction transverse to the jaw elements.

Type: Application

Filed: May 13, 2013

Publication date: December 12, 2013

Applicant: Illinois Tool Works Inc.

Inventor: Illinois Tool Works Inc.

GOVERNMENT CONTRACTS

Government Contractor: ILLINOIS TOOL WORKS INC

Name & Address: 2155 TRAVERSEFIELD DR

TRAVERSE CITY, MI 49686

Number of Defense Contracts Awarded: 1

Dollar Amount of Defense Contracts Awarded: $3,252

Government Contractor: ILLINOIS TOOL WORKS INC

Name & Address: 3700 W LAKE AVE

GLENVIEW, IL 60025

Number of Defense Contracts Awarded:1

Dollar Amount of Defense Contracts Awarded: $384,444

Government Contractor: ILLINOIS TOOL WORKS INC

Name & Address: 3700 W LAKE AVE

GLENVIEW, IL 60026-1217

Number of Defense Contracts Awarded: 85

Dollar Amount of Defense Contracts Awarded: $1,459,319

CASES

Winslow v. Illinois Tool Works, Inc.

Plaintiff: John Winslow

Defendant: Illinois Tool Works, Inc.

Case Number: 1:2017cv08796

Filed: December 6, 2017

Court: Illinois Northern District Court

Office: Chicago Office

County: Cook

Presiding Judge: Amy J. St. Eve

Nature of Suit: Employment

Cause of Action: 29:621

Jury Demanded By: Plaintiff

David Boysen v. Illinois Tool Works Inc. Sep., et al

Plaintiff - Appellee: DAVID L. BOYSEN

Defendant - Appellant: ILLINOIS TOOL WORKS INC. SEPARATION PAY PLAN and ILLINOIS TOOL WORKS, INC.

Case Number: 17-14289

Filed: September 25, 2017

Court: U.S. Court of Appeals, Eleventh Circuit

Nature of Suit: Employee Retirement

TRADEMARKS

cleaning products, for commercial, industrial, laboratory and cleanroom use, namely, presaturated wipes, presaturated swabs…