Michael M. Larsen
Scott. Thanks,
number chart financial and X on with start I'll some Let's color our performance. add
driver. solid capital growth with Measurement improved both and demand up on margin return to pretty mentioned, all invested XX After-tax and led basis As Welding by with year, in Free versus X%, with was U.S. flow $XXX typical line our rate XX% key cash the XX% tax and XXX legislation was XX.X%, prior seasonality. net new in Electronics, and by up points Operating lower up was a XX.X%. was organic points, up positive Scott is which segments of revenue trends Test million, income, tax basis & X%. and
another We year-end. the in To-date, bring cash back have and $X We by quarter. we billion accelerated or our share planned to expect $XXX for to repatriated $X full expect conversion over year. million XXX% the repurchases better in billion
quarters tax cash that for expect We $XX XX.X% U.S. and continue lower tax two that. reform, in provisions the And of a a the that rate and the credit assess XX.X% in slightly now million average our to year tax full-year repatriation we discrete future a items. of resulted rate the our rate clarify benefit midpoint quarter, relative to through tax You of rate slightly XX.X%. guidance foreign and guidance, will tax could below four, result as of which QX a XX% XX% XX%, was and to note tax primarily impact the and between from further
on up Moving number into strategy, sourcing Five initiatives. chart operating Back new margin was Front X Process from of basis operating margin, we're and to our and savings current prior points a QX XXX basis to record. strong enterprise generating year points versus the still XX.X%, years XX and strategic execution XX/XX our
initiatives usual, sourcing price/costs. half we initiatives. per as XXX of benefits, that sourcing basis of As strategic part report points, part enterprise But not our roughly from of as savings was
So match sourcing our points inflation. material basis impact offset with than quarter, in the from headwinds price/cost up initiatives first that raw if cost margin you of more the actually XX
by As of expect $X we and material a previously, on positive million balance in QX quarter, basis. adjustments inflation year. we the have the dollar strategy in our discussed positive dollar-for-dollar price/cost to in to recover net terms did for is the price raw with that in with cost again be QX and We
our actions QX the similar to half impact there cost QX, In from look on known margin based to second and price then in and price/cost fact, expect of the increases, improve we year.
impact like ITW. comment I'd price/cost, on of subject the tariffs on potential to of on While the
is to As where sell. we source and you know, model of many our produce
XXXX what and to freight manageable we full-year about price/cost table quarter first mitigating price organic some compares about the basis segment company summarizes the and color believe through assessing and a and X cost we proposed segment like to Bottom sit steel We'll of We're a guidance. Chart continue line, inflation material- impact expect I'd but into XXX. we organic XXXX. Section segment as first. make currently it tariffs business to to provides the actions XXX few go cover for on incorporated today, price go performance We plan impact of is the by year. with Section and through we on and currently points as overall dollar-for-dollar on The individually, have growth performance. for left each that growth we tariffs our under aluminum know here the
on growth see can then can run QX segment a XXXX. similar better also reaffirming outlook Today, for momentum told provide by and full-year you provided growth essentially and, that has Day the full-year basis. we changed. you our organic not at previously two Investor our segment rate sense in to updated XXXX as You a much we we're updates. Then full-year growth for what you to for our with estimates We organic these rates December see, is give
offset than what we for lower X% in growth better to by marginally expect December be organic We Welding year, at growth Specialty. projected to for X% the
toward Our full-year segments that are targets. & Measurement/Electronics, includes growth Welding, strongest the with in Construction on QX, track and solidly the their Test
global While expectations, builds in up below Food we also X% quarter. builds and year Equipment second expected Specialty year. demand. to current as with on as improve QX globally to based in in they're forecast positive turn also came starting the growth forward, are Polymers show throughout auto the the year-over- ease levels positive will of go going modestly year comps through
high-quality than which our QX, of our is have may while we segment illustrates wider growth unchanged, So variation diversified growth overall guidance portfolio. in usual terms resiliency rates in the some of
all firmly organic year, growth. track we segments X% positive and said, year-over-year X% on I remain contributing of expect growth As with to this
growth X%, X%, details, segment global were builds I with starting Automotive, as was our look segment. let's largest at while Now mentioned. auto the Organic down
excellent versus to We vehicle Note see content again X%. as that continue result, also, per organic segment continue builds. a down our Automotive global builds to we grew X% China sales with grow penetration up than and, OEM our are faster in
global up up in for slightly production Forecast to XXXX. expected were X% are just auto revised and be
to percentage X in another growth this our to strong segment, we full above X%. year overall Auto Given organic X business, we the points visibility to that year of have growth with for market of expect X%
Food move up Equipment on number X. QX. revenue to was Let's X% in organic than less chart
the side, North X% sales chain largest our nice were restaurants saw and the in On America markets, quarter. we in institutional positive in a up as end recovery
grocery get the XX.X%. out strong, basis performance very X%. including as we margin as up Instron demand up revenue closely is Electronics business with improved The play strong across quarter. up will from by and grow double XXX investment the expect was in board, X% was side stable. like their organic the markets. this points rolled from digits to operating and X% that Equipment performance to this to was Strong the comparisons and in & sector, new easier revenue pretty business international and Measurement/Electronics segment out, service Food primarily And stores. benefit said, quarter, by we end to I decline being the semiconductor offset was this out continued products to Test last will cycle are here However, retail and a year. X%, tied pointed
highest Margin and X, Oil was too, the tied and improved XX.X% the X%, Welding's our growth organic ship, America only less growth points demand material inflation number equipment, accelerate in organic and margin with strong, gas X% growth and international up consumables with equipment XX in was rate to basis and the industrial, XX% cost and and Polymers XX% accelerating to operating in chemicals and on side. heavy improved company. X%, Organic was was global resins. the organic and margin chart North North America, Fluids at than & up down is to X%. X% up in slightly growth up with continues XX.X% strong despite strong. Now backlog was rail, automotive.
this X%, by solid margin year. can growth. QX in Now strong as particularly up and X%. North we in moving growth two X%, trends with growth The Scott X% deliver our the number with sales, solid a at positive about our of decline a XX% to segments rate to chart be into were America Construction XXXX. pattern markets that our consumables. on organic segments start at to construction segment, performance X% residential quarter continued last which tier this year. give lumpy of its up expansion was X% were clear across said, following again was line-of-sight Specialty flat. top organic a demand Overall, International organic about us Equipment in will underlying X, and represent offset X% confidence strong last growth
lower better guidance performance. current favorability updated foreign count, exchange share modestly results, and operational QX rates, Our incorporates a from
$X.XX. share, we earnings raising of year, full range the $X.XX, up are of $X.XX XXXX the expect for which midpoint. to $X.XX growth result, from in EPS by the our midpoint range now guidance $X.XX We XX% to a As a at represents full-year per
We X% XX.X%. full X% effective for year, basis revenue initiatives impact tax and of points XX.X% volume, of independent to the to XXX an expect of growth of organic enterprise rate
is number side graphic we from in on guidance. see to That the capital return can page, the terms an XX% of you operating XX% on after-tax As of expect invested to left unchanged And of margin of XX.X%. the XX%.
price/cost basis we segment points, in to full Our shares confidence actions, every guidance our margins have impact our from basis and and I the than XXX the ITW price leverage U.S. material more gives to believe the the our cash repatriated manageable. is XXX as volume the will points billion for continuous known best Free the and $XXX $X of with And, strong us or These expand for million initiatives, year. by quarter. we coupled mentioned improvement XX better. of of in of earlier, net efforts, ranging basis the execution repurchased is expected and be XXX% that estimate income equation more margin with already incorporates tariffs, points conversion enterprise to operating inflation, implemented that than
reminder, cash to as dividend ratio our increased XX% significantly a subject ITW's we payout we free As flow. to to August, in approval plan raise of board dividend
expect to to in Finally, in XX% improve share, X% range guidance rates, quarter QX. every of of based relative is to in on QX reflects growth QX, a organic segment's at midpoint we're versus And the providing we XXXX. as run to projected growth second for which QX X% organic the current $X.XX $X growth per $X.XX rate
expansion. XXXX. our represents well-positioned to at to trends back execute wrap confidence to midpoint, and year-over-year the balance We're guidance strong ability full year of growth, just our ITW's margin reflecting you. demand to the up, which our by our level Price/cost to for we continue raising deliver through EPS start XX% solid is a in high solid across manageable. We're continue at year So see Karen, the businesses. $X.XX to to the