Industrial products and equipment maker Illinois Tool Works Inc. (ITW), Monday lifted the low end of its first-quarter earnings outlook and revised revenue growth forecast. The company also affirmed its fiscal 2010 guidance.
The company now expects first-quarter income from continuing operations in a range of $0.52 - $0.60 per share. The company also sees first-quarter revenue growth of 13% to 15%.
Illinois Tool Works earlier projected income from continuing operations of $0.48 to $0.60 per share and total revenue growth of 14% to 18% for the first quarter.
On average, 18 analysts polled by Thomson Reuters expect the company to report earnings of $0.57 per share for the quarter. Analysts' forecast typically excludes one-time items.
For the three months ended on February 28, 2010, the company reported a total company operating revenue increase of 10% compared to last year. Base revenues contributed 2% to revenue growth in the three-month period. Illinois Tool Works attributed the improvement in base revenue to increased production by the global automotive manufacturers as well as more modest improvement in the industrial packaging and polymers and fluids end markets. In addition, acquisitions and currency translation added 2% and 6% to revenue growth, respectively, the company noted.
On a segment basis, the company's three-month period revenue from Transportation was up 35.4%. Industrial Packaging revenue rose 12.1% while Food Equipment revenue dropped 1.4%. Power Systems and Electronics revenue growth for the period was 5.4%. Construction Products revenue increased 15.8% Polymers and Fluids revenue grew 15.6%. While Decorative Surfaces revenue edged up 0.1%, All Other posted revenue increase of 5.4%.
For fiscal year 2010, Illinois Tool Works continues to expect income from continuing operations of $2.43 to $2.93 per share. The full-year 2010 forecast assumes a total revenue growth range of 10% to 14%. Wall Street analysts forecast full-year earnings of $2.78 per share.
For the recently closed fourth quarter, Illinois Tool Works posted an increase in its profit, aided by ongoing restructuring activities and improvements in discrete end markets in the most recent quarter. The Glenview, Illinois-based company's fourth-quarter net income from continuing operations was $495.6 million or $0.98 per share, up from $302.5 million or $0.59 per share reported in the year-ago quarter. Quarterly operating revenues dropped 5% to $3.76 billion from the previous year's revenue of $3.95 billion.
Among others in the sector, Cooper Industries plc (CBE) in January said that it expects first-quarter earnings excluding items of $0.65 to $0.70 per share. The company expects revenue to be down 3% to up 2% compared to both the first quarter and the preceding fourth quarter. Analysts anticipate the company to earn $0.69 per share on revenue of $1.27 billion for the quarter.
For fiscal year 2010, Cooper has forecast earnings from continuing operations excluding items in a range of $2.70-$2.90 per share. The company also expects revenue to be down 1% to up 4%, including currency translation, and acquisition revenue of approximately 2%. Analysts are of the view that the company will earn $2.97 per share on revenue of $5.23 billion for the full year.
ITW is trading at $45.65, down $1.00, on a volume of 1.49 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.