ITW - Illinois Tool Works Announces New CEO -- Here's How It Might Impact ITW's Future
2023-09-15 06:18:00 ET
E. Scott Santi's decade-long reign as CEO of Illinois Tool Works (NYSE: ITW) will end in January 2024. Shareholders will miss him after a highly successful tenure that resulted in a fundamental transformation of the company. He will remain chairman of the board until early March and serve as a nonexecutive chairman of the board thereafter. Company veteran and current vice chairman Christopher O'Herlihy will replace him. So, what does it mean for the company's future? Here's the lowdown.
Illinois Tool Works stock is up 410% compared to 254% for the S&P 500 since the year when Santi took over as CEO. The outperformance comes down to the company's relentless focus on improving profit margins across its wide range of business segments (segments include automotive parts, welding, foodservice equipment, and electrical components to name a few). The primary method for margin improvement has been implementing its enterprise strategy for each segment. At the heart of the strategy lies the continual reshaping of its portfolio of businesses to maximize their full potential.
I'll return to the enterprise strategy in a moment, but first, here's a look at just how much Santi's tenure improved operating margins and return on invested capital .
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Illinois Tool Works Announces New CEO -- Here's How It Might Impact ITW's Future