GLENVIEW, IL — Illinois Tool Works Inc. (ITW) has reported an operating revenue increase of 16.6 percent for the three months ended Nov. 30. Operating revenues for the three month period consisted of a 9.8 percent increase from acquisitions net of divestitures, 2.5 percent growth from base revenues and a 4.3 percent contribution from translation and other items.
The company said its strong acquisition pace over the past 12 months resulted in the continuing growth in acquisition revenues. Base revenues benefited from ongoing strength in a broad array of international end markets. International base revenues increased 5 percent while North American base revenues grew less than one percent in the three month period.
During the past three months, the company has seen continuing weakness in North American end markets and as a result lower than expected base revenues and operating margins. In addition, as expected, acquisitions have continued to be dilutive to margins. As a result, ITW is lowering its forecasted earnings range to 82 to 86 cents in the 2007 fourth quarter and $3.32 to $3.36 for the full-year. The company now expects base revenues to be in a range of 2 to 2.8 percent for the fourth quarter. The midpoints of these 2007 forecasted ranges would represent earnings growth of 9 percent for the fourth quarter and 11 percent for the full-year.