GLENVIEW, Ill. — Illinois Tool Works Inc. (ITW) has reported first quarter 2011 diluted net income per share of $1.24, an 88 percent increase compared to the 2010 first quarter.
Excluding a one-time tax benefit of 33 cents associated with the settlement of an Australian tax case in the 2011 first quarter, earnings of 91 cents per share would have been 30 percent higher than the year-ago adjusted period. As previously announced, the company eliminated the one month lag for the reporting of its international operations effective Jan. 1. All 2011 and 2010 results as well as 2011 forecasts reflect this change.
The company reported total revenues of $4.388 billion, an increase of 17.4 percent. Organic or base revenues grew 11.7 percent, with North American organic revenues increasing 12.2 percent and international organic revenues growing 11 percent.
Acquisitions net of divestitures added 4.2 percent, and currency translation contributed 1.6 percent to total revenues. ITW reported operating income of $682.6 million, an increase of 26 percent; and net income of $623.1 million, which grew 86.7 percent.
"We were extremely pleased with our strong financial performance in the 2011 first quarter," said David Speer, chairman and CEO. "Our total revenue increase of 17 percent was driven by double-digit organic growth, underlying both the strength in many of our worldwide end-markets and our ongoing market penetration gains. We believe that most of our end-markets will remain relatively strong throughout the remainder of 2011."
Based on first quarter results and anticipated end-market conditions for the remainder of the year, the company is increasing its full-year 2011 diluted net income per share forecast to be in a range of $4.16 to $4.34. The full-year forecast includes the 33 cents per share one-time benefit recorded in the 2011 first quarter. It also includes full-year operating results from the finishing group that is expected to be sold to Graco Inc. no sooner than June. The 2011 full-year forecast assumes a total revenue growth range of 16 percent to 18 percent.
For the 2011 second quarter, the company is forecasting diluted net income per share to be in a range of 99 cents to $1.05. The 2011 second quarter forecast assumes a total revenue growth range of 17 percent to 20 percent.
