Illinois Tool Works Inc. announced unaudited earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported operating revenue of $3,629 million against $3,399 million a year ago. Operating income was $850 million against $742 million a year ago. Income before taxes was $796 million against $726 million a year ago. Net loss was $76 million against net income of $507 million a year ago. Basic and diluted loss per share was $0.22 against net income per diluted share of $1.45 a year ago. Adjusted operating income was $850 million against $742 million a year ago. Free cash flow was $617 million against $593 million a year ago. Adjusted net income was $582 million against $507 million a year ago.

For the year, the company reported operating revenue of $14,314 million against $13,599 million a year ago. Operating income was $3,494 million against $3,064 million a year ago. Income before taxes was $3,270 million against $2,908 million a year ago. Net income was $1,687 million against $2,035 million a year ago. Diluted net income per share was $4.86 against $5.70 a year ago. Adjusted operating income was $3,399 million against $3,064 million a year ago. Free cash flow was $2,105 million against $2,029 million a year ago. Adjusted net income was $2,345 million against $2,035 million a year ago.

The company provided earnings guidance for the first quarter and full year of 2018. The company forecasts first quarter 2018 GAAP earnings to be in the range of $1.80 to $1.90 per share with organic growth of 3% to 4%. As per usual, the guidance is based on current foreign exchange rates and the company are estimating a 24.5% to 25.5% tax rate.

The company is raising its 2018 full-year guidance by $0.40 at the midpoint to reflect the benefits of a reduction in the tax rate to an estimated range of 25% to 26% and current foreign exchange rates. The company expects 2018 GAAP earnings to be in the range of $7.45 to $7.65 per share with organic growth of 3% to 4%. Free cash flow conversion is expected to exceed 100% of net income and allocated $1 billion of surplus capital to share repurchases.