close

ITW foodservice division preserves income despite £12m decrease in quarterly revenues

ITW stand

ITW’s foodservice equipment division managed to retain its profitability despite seeing sales fall by $16m (£12m) during the third quarter of 2019.

Revenues for the business, which is ITW’s second largest division by sales, slipped 3% to $551m (£429m) for the three months to 30 September.

However, operating income of $152m (£118m) was $1m (£780,000) more than the previous year.

Story continues below
Advertisement

ITW counts a number of major foodservice equipment names within its portfolio including Hobart, Traulsen, Foster, Baxter and Vulcan.

Foodservice is generally around 15% of its turnover.

Overall third quarter sales at ITW fell almost 4% to $3.5 billion (£2.7 billion) during the quarter, with unfavourable foreign currency translation impact of 1.8% and a decline in organic revenue of 1.7%.

The company’s ongoing Product Line Simplification (PLS) activities reduced organic growth by 60 basis points, it said.

“While the demand environment continued to moderate across a broad cross section of our portfolio, we delivered another solid quarter with excellent operational execution,” said Scott Santi, chairman and CEO.

“Our ability to overcome near-term macro challenges and deliver seven percent earnings per share growth, expand margins to 25%, and grow free cash flow by 12% is a direct result of our high quality business portfolio, the performance power of the ITW Business Model, and focused execution by our team of dedicated ITW professionals around the world,” Mr Santi concluded.

Hobart owner ITW ‘considering acquisitions after seven-year pause’

Tags : financialsFoodservice equipmentITW
Andrew Seymour

The author Andrew Seymour

Leave a Response