DOW JONES NEWSWIRES 
 

Illinois Tool Works Inc.'s (ITW) revenue fell 24% during the three months ended July 31, though the diversified manufacturer saw modest improvement from the second quarter as demand showed more signs of stabilizing.

The bellwether maker of products ranging from fasteners to foodservice and welding equipment has been at the front lines of the sputtering economy's toll on the industrial sector as customers sharply reduced orders starting late last year.

Shares were down 2.9% at $40.11 in recent premarket trading.

The diversified manufacturer also affirmed its third-quarter earnings and revenue forecasts.

Excluding the effects of currency translation and acquisitions, Illinois Tool Works said revenue for the most recent three-month period declined 21%, falling 34% at its industrial packaging unit, 39% at its power systems and electronics business and 32% at its construction products unit.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com