GLENVIEW, Ill. — Illinois Tool Works Inc. (ITW) has reported an operating revenue decrease of 13 percent for the three months ended Nov. 30. The revenue decline for the three months included a 15 percent decrease in base revenues.
Acquisitions contributed 2 percent to revenues while currency translation was essentially flat in the three month period. For the most recent three month period, base revenues improved compared to the August – October 2009 period mainly due to easier November comparisons and ongoing improvement in discrete end-markets, particularly automotive and construction.
On a segment basis, the company’s three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below.
On Oct. 20, the company forecasted fourth quarter 2009 diluted income per share from continuing operations to be in a range of 54 cents to 66 cents. As a result of a $75 million nonrecurring tax benefit from a German tax audit settlement, the company is now forecasting fourth quarter 2009 diluted income per share from continuing operations to be in a range of 69 cents to 81 cents.
The 2009 fourth quarter tax rate is now expected to be in a range of 10.5 percent to 11.5 percent versus the original range of 29.25 percent to 29.75 percent. Also, the company is expecting additional tax benefits from other fourth quarter transactions, which are not included in the forecast but could be material. The 2009 fourth quarter forecast assumes a total revenue growth range of -1 percent to 5 percent versus the 2009 third quarter.
