Illinois Tool Works Inc.

Good morning. My name is David and I'll be your conference operator today. At this time, I'd like to welcome everyone to the ITW Q1 2022 earnings conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 once again. For those participating in the Q&A, you'll have the opportunity to ask one question and, if needed, one follow-up question. Karen Fletcher, Vice President of Investor Relations, you may begin your conference.

Thank you, David. Good morning, everyone, and welcome to ITW's first quarter 2022 conference call. I'm joined by our Chairman and CEO, Scott Santee, and Senior Vice President and CFO, Michael Larson. During today's call, we'll discuss ITW's first quarter financial results and update our guidance for full year 2022. Slide 2 is a reminder that this presentation contains forward-looking statements. We refer you to the company's 2021 Form 10-K 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. So please turn to Slide 3, and it's now my pleasure to turn the call over to our Chairman and CEO, Scott Santee.

Thanks, Karen, and good morning, everyone. We have talked often about the fact that the core focus of our enterprise strategy is to leverage the performance power of the ITW business model to consistently deliver top-tier performance in any environment. And our teams around the world continue to do an exceptional job of doing just that, as evidenced by the 11% organic growth and 23% operating margins that they delivered in Q1. In the quarter, we saw continued strong demand almost across the board, while input cost inflation and supply chain issues remained challenging, to say the least, and our businesses responded. Across the company, we continue to leverage the advantage supply capabilities inherent in our 80-20 front-to-back operating system to support our customers and execute our win-the-recovery strategy to accelerate profitable market penetration and organic growth across our portfolio. Many of our businesses continue to receive strong feedback from their customers that their current delivery performance is truly differentiated and that they are being awarded additional share as a result. And despite another step up in input cost inflation in Q1, we more than offset cost increases on a dollar-for-dollar basis in the quarter. Looking ahead at the remainder of 2022 based on our first quarter results and projecting current demand, supply rates, and all known cost increases through the balance of the year, we are raising our guidance for a full year 2022 organic growth to 8.5% at the midpoint and GAAP EPS of 920 at the midpoint, which is 14% earnings growth year-over-year and would be an all-time record for the company. While the near-term environment certainly has its challenges, we remain focused on delivering differentiated service to our customers, differentiated financial performance for our shareholders, and continued progress on our path to ITW's full potential. I'll turn the call over to Michael, who will provide more detail on the quarter and our full-year outlook. Michael? Thank you, Scott, and good morning, everyone.