Illinois Tool Works Inc.

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 first quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. 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.

Okay. Thank you, Rob. Good morning, and welcome to ITW's first quarter 2023 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 will discuss ITW's first quarter financial results and provide an update on our outlook for the full year 2023. Slide two 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 three, and it's now my pleasure to turn the call over to our Chairman and CEO, Scott Santee.

Thank you, Karen, and good morning, everyone. As you saw from our earnings release this morning, we delivered a solid start to the year, with results coming in largely in line with our expectations heading into the quarter. Starting with the top line, organic growth was 5%, with four of seven segments delivering positive organic growth, led by food equipment up 16%, welding up 10%, automotive OEM up 8%, and tested measurement and electronics up 6%. Polymers and fluids was flat, construction was down 1%, and specialty was down 5%. Operating margin expanded 150 basis points to 24.2%, with 100 basis point contribution from enterprise initiatives. Gap earnings per share increased 10% to $2.33, which was a new Q1 record for the company. Our free cash flow conversion rate was 86% of net income, which was in line to modestly above normal Q1 levels. Looking ahead at the balance of the year, While there is, of course, some uncertainty with regard to the macro environment, I have no doubt that my ITW colleagues around the world will continue to read, react, and execute at a high level to whatever comes our way. I will now turn the call over to Michael to discuss our Q1 performance in more detail and our updated FOIA guidance. Michael? Thank you, Scott, and good morning, everyone.