Illinois Tool Works Inc. (ITW) boosted its third-quarter
forecast, crediting its restructuring actions and stronger markets,
as it said revenue the past three months is down 21%.
The bellwether maker of products ranging from fasteners to food
service and welding equipment now expects per-share earnings from
continuing operations of 48 cents to 56 cents. The forecast assumes
a 3% to 6% revenue rise from the second quarter. The company had
projected earnings of 39 cents to 51 cents and revenue ranging from
down 2% to up 4% sequentially.
Illinois Tool was at the front lines as the sputtering economy
took its toll on the industrial sector and customers sharply
reduced orders. Chairman and Chief Executive David B. Speer has
said the recovery in the U.S. economy would be uneven and
prolonged, with significant improvement in the housing industry not
likely until 2011.
But Tuesday, the company noted improvements in markets such as
automotive and construction. Revenue fell in all segments for the
latest three months, led by the power systems and electronics
unit's 37% drop. Double-digit declines were reported by all
segments. Transportation fell 9.2%.
Illinois Tool shares closed Monday at $45.20 and didn't trade
premarket. The stock is up 26% this year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com