GLENVIEW, Ill. — Illinois Tool Works Inc. (ITW) has reported 2010 first quarter diluted income per share from continuing operations of 58 cents, a significant improvement compared to a loss of 2 cents per share in the 2009 first quarter.

The company’s first quarter revenues of $3.606 billion were 14.6 percent higher than the year-ago period. Notably, end-markets associated with the automotive OEM, polymers and fluids, industrial packaging and the PC board fabrication businesses showed strength in the quarter. The company’s base revenues grew 7.5 percent in the quarter, with North American base revenues increasing 7.1 percent and international base revenues growing 8 percent. Acquisitions and currency translation added 2 percent and 5.4 percent, respectively, to first quarter revenues.

First quarter operating income of $483.9 million was $393 million higher than the year-ago period. Income from continuing operations totaled $294.3 million in the first quarter versus a loss of $8 million in the year-earlier period. First quarter operating margins of 13.4 percent were ,050 basis points higher than the year-ago period. Excluding the impairment in the 2009 first quarter, first quarter 2010 operating margins would have been 760 basis points higher than the year-earlier period.

"Our strong first quarter financial performance highlights our business units’ ability to achieve significant leverage on increased revenues thanks to lower overhead and manufacturing costs as a result of our restructuring programs," said Chairman and CEO David Speer. "We are encouraged by the ongoing improvement in macro-data across many of our worldwide end markets and we have a growing sense of optimism that the business environment will continue to improve as the year progresses."

Based on the improvement in certain end markets in the first quarter, the company is forecasting second quarter 2010 diluted income per share from continuing operations to be in a range of 74 cents to 86 cents. The 2010 second quarter forecast assumes a total revenue growth range of 15 percent to 19 percent. For full-year 2010, the company is forecasting diluted income per share from continuing operations to be in a range of $2.72 to $3.08. The 2010 full-year forecast assumes a total revenue growth range of 10 percent to 14 percent. The new full-year guidance represents a substantial upward adjustment from the company’s March 30 full-year earnings forecast of $2.39 to $2.89.