Analysis of Revenues
Revenues as Reported
Illinois Tool Works Inc., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The annual revenue data reveals several distinct trends across the business segments over the five-year period ending December 31, 2021.
- Automotive OEM
- This segment experienced an initial modest increase from 2017 to 2018, rising from $3,271 million to $3,338 million. However, it subsequently declined each year until 2020, reaching a low of $2,571 million. A partial recovery occurred in 2021 with revenues increasing to $2,800 million, although levels remained below those seen in the early years.
- Food Equipment
- Revenue in this segment showed steady growth from 2017 to 2018, increasing from $2,123 million to $2,214 million. Revenue remained relatively stable in 2019 before dropping sharply to $1,739 million in 2020. This decline was followed by a strong recovery in 2021, rising to $2,078 million but not yet returning to the peak levels observed in 2018.
- Test & Measurement and Electronics
- This segment demonstrated consistent revenue growth from $2,069 million in 2017 to $2,171 million in 2018. Revenue then slightly decreased in 2019, followed by a decline in 2020 to $1,963 million. A significant recovery occurred in 2021, with revenues increasing to $2,346 million, surpassing all previous periods.
- Welding
- Revenues in the welding segment increased from $1,538 million in 2017 to a peak of $1,691 million in 2018. Subsequently, revenues declined over 2019 and 2020 to $1,384 million, the lowest point in the period. In 2021, revenues rebounded to $1,650 million, close to the previous peak.
- Polymers & Fluids
- This segment's revenues were stable from 2017 to 2018 at $1,724 million, followed by a gradual decline through 2020 to $1,622 million. A rebound occurred in 2021, increasing revenues to $1,804 million, the highest level in the time frame considered.
- Construction Products
- Revenues increased slightly from $1,672 million in 2017 to $1,700 million in 2018. The segment saw a minor dip in 2019 but experienced growth thereafter, reaching $1,945 million in 2021, the highest recorded during this period.
- Specialty Products
- Revenues in specialty products remained relatively stable from 2017 to 2018, with a slight increase from $1,938 million to $1,951 million. This was followed by a consistent decrease through 2020, reaching $1,660 million. The segment saw a recovery in 2021 with revenues rising to $1,854 million, yet still below the peak years.
- Intersegment Revenue
- Intersegment revenues remained negative and relatively stable over the five years, fluctuating between -$22 million and -$17 million, suggesting consistent eliminations for internal transactions without sizable variation.
- Operating Revenue
- Total operating revenue showed growth from $14,314 million in 2017 to a high of $14,768 million in 2018. It then declined steadily over the next two years, reaching a low of $12,574 million in 2020, before recovering strongly to $14,455 million in 2021. Despite the volatility, 2021 operating revenues nearly returned to the levels experienced at the beginning of the period.
Overall, the data indicate that the company faced a challenging period in 2020, with declines across most segments and overall operating revenue likely impacted by external factors. Recovery trends are evident in 2021, with several segments reaching or approaching prior peaks, indicating a rebound in operational performance. The variability among segments suggests differential impacts and recovery rates, with Test & Measurement and Electronics, Construction Products, and Polymers & Fluids segments showing especially notable improvements in the latest year analyzed.