Summary:
We maintain a Neutral recommendation on Illinois Tool Works. The company on its Analyst and Investor Day provided an update on its five-year enterprise strategy. The company claims to be progressing well having divested 20 non-core businesses since 2011 and aiming to divest 25% of 2011 revenues by 2014. The number of operating divisions has been shortened, leading to overall margin expansion. Cost savings of $600 $800 million are targeted through business structure simplification and strategic sourcing strategies. (…)
