DOW JONES NEWSWIRES
Illinois Tool Works Inc. (ITW) said its revenue has fallen 25%
the past three months, showing the sales slump at the diversified
manufacturer has appeared to stabilize.
Excluding acquisitions and currency changes, the drop was 23%,
with the weakest segments being industrial packaging, power systems
and electronics and construction products. All three saw sales down
by more than one-third.
The company affirmed its second-quarter earnings forecast set
last month, assuming a sequential revenue increase of 5% to 11%.
The forecast excludes its Decorative Surfaces unit which it pulled
off the block last week, citing a weak market and premiums afforded
such operations. The unit makes building products such as laminate,
countertops and flooring and its brands include Wilsonart and
Polyrey.
Shares were down 1.3% at $33.50 in recent premarket trading. As
of Thursday, the stock was down nearly 40% in the last 12 months,
though it has risen by roughly a third since hitting a seven-year
low in March.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com