Illinois Tool Works (ITW) has reported that sales from its foodservice equipment arm reached $449m in the third quarter – an 18% reduction on the same period last year.
The company, which owns brands such as Baxter, Hobart and Traulsen, saw divisional operating income almost halve from $152m last year to $88m this time around.
Overall company revenue declined at a less severe rate of 5%, leaving it with total quarterly sales of $3.3 billion.
Chairman and CEO Scott Santi said that the business had actually seen “solid recovery progress” in many of the end markets it serves in the third quarter as evidenced by its revenue growing 29% versus second quarter.
“Our people around the world responded by leveraging our proprietary business model to provide excellent service to our customers while keeping themselves and their co-workers safe,” he said.
“These efforts and our third quarter financial results support the decisions we made early in the pandemic to provide full compensation and benefits support to all of our ITW team members, to focus on positioning the company for full participation in the recovery, and to remain invested in the key initiatives supporting the execution of our long-term enterprise strategy.”
Santi said the strength of the company’s operational and financial performance over the last few quarters demonstrated that it has the resilience necessary to deliver consistent upper tier results in any economic environment.
“Looking ahead, we remain focused on delivering strong results across a range of economic scenarios while continuing to execute on our long-term strategy to achieve and sustain ITW’s full-potential performance,” he concluded.