Illinois Tool Works Inc. 실적 발표

Yeah, thank you, Jamie. So maybe I'll take the first part and then hand it over to you, Chris, for the CBI question. I'd say in terms of Overall confidence. You know, let's start with the context that we came in right along with our plan for the first quarter. You know we talked about on the last call that we expected a step down from Q4 to Q1 and we actually on the top line did a little bit better than that. So I would say if anything we are more confident today. As we sit here today, I think it's important. to mention that our guidance today is based on the current levels of demand that we're seeing in these businesses. And in some of these businesses, maybe welding and test and measurement in particular, we are seeing order rates that are meaningfully higher than the organic growth rates that those segments put up in the first quarter. That is not included in our guidance today. Again, based on kind of our past practice, this is based on, you know, current run rates. And I think certainly maybe a little bit more of a challenge in maybe a place like food equipment, which we just talked about. But we believe as we sit here today, we have more than enough strength in those capex related and semi related segments to offset any challenges there. And like I said, we're more confident in our organic growth guidance of one to three today than we were on the last call. So that's maybe how I would think about it. Just one last word on automotive, because automotive did have a slower start in China. So you need to factor in that automotive bills in China were down 10% in Q1, and they're projected to be flat here in Q2. So we're expecting a pretty meaningful ramp from Q1 to Q2. uh with sequential growth in the in kind of the low to mid single digits we expect meaningful sequential margin improvement more than 100 basis points we expect incremental margins to improve um and if you just look at the uh the cadence that we outlined which i think was your other question you have the eps bit 48 to 52 we just did 23 in q1 which is exactly what we said on the call uh last time that would imply uh that for the second quarter the eps contribution would be about 25% to the full year. And as we sit here today, we feel very, very confident in our ability to deliver both Q2 and the full year.

Yeah, thank you, Jamie. So maybe I'll take the first part and then hand it over to you, Chris, for the CBI question. I'd say in terms of Overall confidence. You know, let's start with the context that we came in right along with our plan for the first quarter. You know we talked about on the last call that we expected a step down from Q4 to Q1 and we actually on the top line did a little bit better than that. So I would say if anything we are more confident today. As we sit here today, I think it's important. to mention that our guidance today is based on the current levels of demand that we're seeing in these businesses. And in some of these businesses, maybe welding and test and measurement in particular, we are seeing order rates that are meaningfully higher than the organic growth rates that those segments put up in the first quarter. That is not included in our guidance today. Again, based on kind of our past practice, this is based on, you know, current run rates. And I think certainly maybe a little bit more of a challenge in maybe a place like food equipment, which we just talked about. But we believe as we sit here today, we have more than enough strength in those capex related and semi related segments to offset any challenges there. And like I said, we're more confident in our organic growth guidance of one to three today than we were on the last call. So that's maybe how I would think about it. Just one last word on automotive, because automotive did have a slower start in China. So you need to factor in that automotive bills in China were down 10% in Q1, and they're projected to be flat here in Q2. So we're expecting a pretty meaningful ramp from Q1 to Q2. uh with sequential growth in the in kind of the low to mid single digits we expect meaningful sequential margin improvement more than 100 basis points we expect incremental margins to improve um and if you just look at the uh the cadence that we outlined which i think was your other question you have the eps bit 48 to 52 we just did 23 in q1 which is exactly what we said on the call uh last time that would imply uh that for the second quarter the eps contribution would be about 25% to the full year. And as we sit here today, we feel very, very confident in our ability to deliver both Q2 and the full year.

Yeah, I think there's really nothing unusual about Q1, I'd say, other than the slow start maybe in food equipment. I think if you look at kind of how the quarter progressed, you know, January started out a little bit slower because of food equipment, and then we improved from a growth standpoint in February, got even better in March. I think March organic was up 4% and in April we're off to a really good start with organic growth. If you look at our full year guidance range, one to three, we're probably turning towards the high end of that range here in April. And so that's really the top line. And on margins, We expect a sequential improvement, like I said, from Q1 to Q2. We just did 25.4. We would expect more than 100 basis points of improvement sequentially from Q1 to Q2. So that will put it somewhere around, you know, 26.5, 27-ish. And then a little bit of improvement further from Q2 to Q3 on margins. and as well in Q4. From a growth standpoint, from Q2 to Q3, revenues based on run rates, again, are kind of about the same in Q3 and Q4. But that is all that we need to deliver some meaningful organic growth towards the higher end of the range in the second half of this year. So hopefully that gives you a little bit of context.