ITW Reports 10 Percent Growth in Operating Revenues - aftermarketNews

ITW Reports 10 Percent Growth in Operating Revenues

Illinois Tool Works Inc. (ITW) has reported an operating revenue increase of 10.1 percent for the three months ended Aug. 31. The company said this double-digit increase in revenue growth was due to contributions from translation and acquisitions.

ITW Reports 10 Percent Growth in Operating Revenues

Illinois Tool Works Inc. (ITW) has reported an operating revenue increase of 10 percent for the three months ended Nov. 30. Operating revenues for the three month period consisted of 2 percent growth from base revenues, a 7 percent increase from acquisitions and a 1 percent contribution from translation and other items. While base revenue growth benefited from strong demand from a broad array of international end markets, a number of North American end markets continued to show signs of moderation or decline for the three month period.

GLENVIEW, Ill. — Illinois Tool Works Inc. (ITW) has reported an operating revenue increase of 10.1 percent for the three months ended Aug. 31. The company said this double-digit increase in revenue growth was due to contributions from translation and acquisitions.

On Aug. 11, the company announced a plan to divest its Decorative Surfaces and Click Commerce businesses. These units, totaling approximately $1.3 billion in annual revenues, will be reclassified as part of discontinued operations prior to the company’s reporting of earnings on Oct. 16. Accordingly, the company will release the reclassified financial statements for prior periods and its related earnings forecast on October 7.

For more information, go to: http://www.itw.com.

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GLENVIEW, IL — Illinois Tool Works Inc. (ITW) has reported an operating revenue increase of 10 percent for the three months ended Nov. 30. Operating revenues for the three month period consisted of 2 percent growth from base revenues, a 7 percent increase from acquisitions and a 1 percent contribution from translation and other items. While base revenue growth benefited from strong demand from a broad array of international end markets, a number of North American end markets continued to show signs of moderation or decline for the three month period.

After two months of lower than expected base revenue growth in the 2006 fourth quarter and anticipated continuing weakness in North America end markets in December, the company is decreasing its forecasted earnings range to 72 cents to 74 cents from the prior range of 77 cents to 81 cents. As a result, the company’s full-year forecasted earnings range is now $2.96 to $2.98 compared to the prior range of $3.01 to $3.05. Base revenues now are expected to grow in a range of 1.8 percent to 2.4 percent for the fourth quarter and 3.7 percent to 3.8 percent for the full year. The previous base revenue ranges were 3.1 percent to 5.1 percent for the fourth quarter and 4.0 percent to 4.6 percent for the full year. The midpoint of these newly forecasted ranges would represent earnings growth of 3 percent in the fourth quarter and 14 percent for the full-year.

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