GLENVIEW, Ill. — As previously announced, Illinois Tool Works Inc. (ITW) entered into a definitive agreement in April 2011 to sell its finishing group of businesses to Graco Inc. The finishing businesses’ revenues were approximately $305 million in 2010. Additionally, the company approved plans to divest a consumer packaging business and an electronics business, which had combined 2010 revenues of approximately $100 million. Accordingly, ITW has reclassified the results of these businesses, as well as two other businesses previously exited, to discontinued operations.

The effect of the reclassification is as follows:

The company also announced that it has completed share repurchase activity of $550 million or 9.7 million shares in the 2011 second quarter. This reduction in shares equates to 5 cents of 2011 full-year earnings.

As a result of this reclassification to discontinued operations and share repurchase activity, ITW is now forecasting 2011 second quarter income per share from continuing operations to be in a range of 95 cents to $1.01 and assumes a total revenue growth range of 17 percent to 20 percent. The new forecasted range compares to a second quarter 2010 adjusted income per share from continuing operations of 79 cents.

Excluding the reclassification for discontinued operations and share repurchase, the second quarter 2011 would be in a range of 99 cents to $1.05. For the full year, the company is now forecasting income per share from continuing operations to be in a range of $4.08 to $4.26 and assumes a total revenue growth range of 16 percent to 18 percent. The full-year forecast includes the 33 cents per share one-time tax benefit recorded in the 2011 first quarter. The new forecasted range compares to a full-year 2010 adjusted income per share for continuing operations of $2.89. Excluding the reclassification for discontinued operations and share repurchase, the full year 2011 would be in a range of $4.16 to $4.34.