Illinois Tool Works (ITW) 8-K Results of Operations and Financial Condition

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ITW Conference Call

Third Quarter

2010

Exhibit 99.2

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ITW
Agenda

1.Introduction…………………...….. John Brooklier/David Speer

2.Financial Overview…………..….. Ron Kropp

3.Reporting Segments………....…. John Brooklier

4.2010 Forecasts…………………… Ron Kropp

5.Q & A………………......……...…... John Brooklier/Ron Kropp/David Speer

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ITW
Forward - Looking Statements

This conference call contains forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995 including, without limitation, statements regarding
operating performance, revenue growth, diluted income per
share from continuing operations, restructuring expenses and
related benefits, tax rates, end market conditions, and the
Company’s related 2010 forecasts.These statements are
subject to certain risks, uncertainties, and other factors which
could cause actual results to differ materially from those
anticipated.Important risks that could cause actual results to
differ materially from the Company’s expectations are detailed
in ITW’s Form 10-K for 2009.

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Conference Call Playback

Replay number: 402-220-9717

No pass code necessary

Telephone replay available through midnight of
November 2, 2010

Webcast / PowerPoint replay available at
itw.com website

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ITW
Quarterly Highlights

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ITW
Quarterly Operating Analysis

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ITW
Non Operating & Taxes

ITW
Invested Capital

ITW
Debt & Equity

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ITW
Cash Flow

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ITW
Acquisitions

Transportation
Quarterly Analysis

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Transportation
Key Points

•Transportation segment benefited from our ongoing
penetration into Auto OEM platforms; strong build
environment also continued in Q3 ’10

•Auto OEM/Tiers: Worldwide base revenues +21.3% in Q3
’10 vs. Q3 ’09

–North American Q3 ’10 base revenues: +28.5% vs. Q3 ’09

•North American auto builds increased 26% in Q3 ’10 vs. Q3
’09

–International Q3 ’10 base revenue: +15.5% vs. Q3 ’09

•European auto builds grew 8% in Q3 ’10 vs. Q3 ’09

•Auto aftermarket Q3 ’10 worldwide base revenues: -2.5% in
Q3 ’10 vs. Q3 ’09 as consumer spending softens

Industrial Packaging
Quarterly Analysis

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Industrial Packaging
Key Points

•Total segment base revenue growth of 16.4% in Q3 ’10
reflected gains for many of our businesses; most end
markets remained at sustainable levels

–Total Q3’10 North America industrial packaging base
revenues: +19.5% vs. Q3 ’09

–Total Q3’10 international industrial packaging base revenues:
+13.0% vs. Q3 ’09

•Q3 ’10 North American and international plastic and
steel strapping base revenues: +24.0% and +13.4%,
respectively, vs. Q3 ’09

•Q3 ’10 protective packaging units: +17.3% vs. Q3 ’09

Food Equipment
Quarterly Analysis

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Food Equipment
Key Points

•Total segment Q3 ’10 base revenues: +1.4% vs. Q3
’09; customers delayed equipment purchases but
continued to invest in our service support

•North America Q3 ’10 base revenues: flat vs. Q3 ’09

–Equipment base revenues: -3.8% in Q3 ’10 vs. Q3 ’09

–Service base revenues: +3.6% in Q3 ’10 vs. Q3 ’09

•International Q3 ’10 base revenues: +2.7% vs. Q3 ’09;
Asia and Latin America drove growth in quarter

Power Systems and Electronics
Quarterly Analysis

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Power Systems and Electronics
Key Points

•Total Q3 ’10 segment base revenue increase +23.8%
due to strong contributions from welding and PC
board fabrication units

•In Q3 ’10, worldwide welding base revenues: +14.8%
vs. Q3 ’09

–Q3 ’10 North America welding base revenues: +19.4% vs. Q3
’09 due to heavy equipment OEM’s and manufacturers

–Q3 ’10 International welding base revenues: +5.3% vs. Q3 ’09;
Europe strong while Asia Pacific weaker

•Q3 ’10 PC board fabrication base revenues: +68.6%
vs. Q3 ’09 as consumer electronics demand
continues to be very strong

Construction Products
Quarterly Analysis

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Construction Products
Key Points

•Total segment base revenue growth of 4.0% due to more
stable international construction demand; North America
end markets weaker

•International Q3 ’10base revenues: +7.0% vs. Q3 ’09

–Q3 ’10 Europe base revenues: +13.3% vs. Q3 ‘09

–Q3 ’10 Asia-Pacific base revenues: +5.1% vs. Q3 ’09

•North America Q3 ’10base revenues: -6.7% vs. Q3 ‘09

–Q3 ’10 residential base revenues: -10.7% vs. Q3 ’09

–Q3 ’10 commercial construction base revenues: -7.8%
vs. Q3 ’09

–Q3 ’10 renovation base revenues: -2.1% vs. Q3 ’09

Polymers and Fluids
Quarterly Analysis

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Polymers and Fluids
Key Points

•Total Q3 ’10 segment base revenue growth of 4.3%
due to better international demand but slower than
expected growth in key North American end markets

•Q3 ’10 worldwide polymers:

–International base revenues: +8.1% vs. Q3 ’09

–North America base revenues:-7.0% vs. Q3 ’09
(oil and gas platforms and wind industry)

•Q3 ’10 worldwide fluids:

–International base revenues: +4.0% vs. Q3 ’09

–North America base revenues: +3.0% vs. Q3 ’09

Decorative Surfaces
Quarterly Analysis

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Decorative Surfaces
Key Points

•Total Q3 ’10 segment base revenues: +3.1% vs. Q3 ’09

•North America laminate Q3 ’10 base revenues: +5.0% vs.
Q3 ’09 due to increased buying by office equipment
customers and improved demand for retail outlet
remodeling

•International Q3 ’10 base revenues: +4.9% vs. Q3 ’09 due
to increased demand in Asia (+23% y/o/y growth)

•Wilsonart flooring business Q3 ’10 base revenues:
decreased substantially vs. Q3 ’09

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All Other
Quarterly Analysis

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All Other
Key Points

•Total Q3 ’10 segment base revenues: +13.7% vs. Q3 ’09

•Q3 ’10 worldwide test and measurement base revenues: +8.9% vs.
Q3 ’09; service and consumables helped drive growth; Cap Ex
recovery next?

•Q3 ’10 worldwide consumer packaging base revenues: +9.9% vs.
Q3 ’09 due to strength in graphics/decorating businesses

•Q3 ’10 worldwide industrial/appliance base revenues: +18.6% vs.
Q3 ’09; better sales growth for both North America and the rest of
world

•Q3 ’10 worldwide finishing base revenues: +31.0% vs. Q3 ’09;
strong growth largely driven by international end market demand
for Gema products

ITW
2010 Forecast

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ITW 2010 Forecast
Key Assumptions

•Exchange rates hold at current levels

•Acquired revenues in the $500 to $700 million range for the
year

•Q4 operating margins expected to be in a range of 14.2% to
15.2% which would be lower than 3rd quarter margins
primarily due to North America/International mix and Q3 ’10
corporate adjustments.

•Restructuring costs of $40 to $50 million for the full year

•Tax rate range of 30.0% to 31.0% for the 4th quarter

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ITW Conference Call
Q & A

Third Quarter

2010