Illinois Tool Works
Q2 2023 Earnings Call
Aug 01, 2023, 10:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the ITW second-quarter earnings conference call. All lines have been placed on mute to prevent any background noise.
After the speakers' remarks, there will be a question-and-answer session. [Operator instructions] For those participating in the Q&A, you will have the opportunity to ask one question and, if needed, one follow-up question. Thank you. Karen Fletcher, vice president of investor relations, you may begin your conference.
Karen Fletcher -- Vice President, Investor Relations
Thanks, Rob. Good morning, and welcome to ITW's second-quarter 2023 conference call. I'm joined by our chairman and CEO, Scott Santi; and senior vice president and CFO, Michael Larsen. During today's call, we'll discuss ITW's second-quarter financial results and provide an update on our full-year 2023 outlook.
Slide 2 is a reminder that this presentation contains forward-looking statements. We refer you to the company's 2022 Form 10-K and subsequent reports filed with the SEC for more detail about important risks that could cause actual results to differ materially from our expectations. This presentation uses certain non-GAAP measures, and a reconciliation of those measures to the most directly comparable GAAP measures is contained in the press release. Please turn to Slide 3, and it's now my pleasure to turn the call over to our chairman and CEO, Scott Santi.
Scott Santi -- Chairman and Chief Executive Officer
Thanks, Karen, and good morning, everyone. As you saw from our earnings release this morning, the ITW team delivered another quarter of strong operational execution and financial performance. Quarterly operating income grew 9% and exceeded $1 billion for the first time in ITW's history. Operating margin expanded 170 basis points year on year to 24.8%, a second-quarter record with a 130 basis point contribution from enterprise initiatives.
Operating margins for the company are now solidly above 2019 levels. And with a normalizing price/cost environment, we are back to making progress toward our 2030 goal of 30%. With regard to revenues, organic growth was 3% as stable underlying demand in many of ITW's industrial end markets was partially offset by inventory reductions at our end customers and channel partners in response to stabilizing supply chain performance. We estimate that this impacted organic growth by 1 point to 1.5 points in the quarter.