Annual results from foodservice equipment conglomerate ITW have revealed the extent to which the global coronavirus pandemic impacted its business last year.
Revenues that the company made from catering equipment reached $1.73bn (£1.26bn) in 2020 compared with $2.18bn (£1.59bn) the previous year – a cut of 21% or $450m (£328m).
At the same time, operating income fell from $578m to $342m (£421m to £249m), while it ended the year with a 17.8% operating margin versus 26.4% the year previously.
ITW owns a number of well-known foodservice equipment brands, including Hobart, Foster, Avery Berkel and Bonnet, although its business isn’t exclusively wedded to the hospitality sector.
It also has manufacturing interests in automotive OEM, construction, polymers and fluids, and electronics.
Full-year revenue at the company declined 11% to $12.6bn (£9.17bn), while operating income fell 15% to $2.9bn (£2.11bn).
Scott Santi, chairman and CEO, said the company had responded “remarkably” to the unprecedented conditions it had faced and ended the year with fourth quarter up slightly on the previous 12 months.
“Looking back at 2020 in its entirety, our people around the world provided another meaningful demonstration of the power of the ITW business model and the differentiating value of our decentralised entrepreneurial culture in how the company responded to the unprecedented events and challenges of the past year.
“While it was the unique circumstances that we faced and our response to them that defined the year, it was the sum total of all that the ITW team has built over the last 8 years through the execution of our enterprise strategy that gave us the capabilities and options to respond as we did.
“In the face of a global pandemic, our ability to deliver strong operational and financial performance while remaining fully invested in the execution of our long-term enterprise strategy provides further evidence that ITW is a company that has the enduring competitive advantages, resilience, and agility necessary to deliver consistent top tier performance in any environment and over the long term.”