GLENVIEW, Ill. — Illinois Tool Works Inc. has reported second quarter 2011 diluted income per share from continuing operations of 96 cents, a 22 percent increase compared to the 2010 second quarter. Excluding the impact of discontinued operations, second quarter 2011 diluted net income per share would have been 99 cents.
Total revenues of $4.615 billion increased 17.5 percent versus the year-ago period. The company’s financial results and forecast reflect the reclassification of certain businesses to discontinued operations as announced on June 28.
Organic or base revenues grew 6.3 percent, with North American organic revenues increasing 7.4 percent and international organic revenues growing 5.1 percent. Acquisitions net of divestitures added 4.8 percent and currency translation contributed 6.3 percent to total revenues, the company said.
Operating income of $711.1 million increased 14 percent, and income from continuing operations of $483.5 million grew 21 percent. Net income of $498.4 million increased a similar 21 percent.
The company also executed share repurchases of $550 million or 9.7 million shares in the second quarter.
"While our second quarter performance reflected solid demand from a number of worldwide end-markets, our 17.5 percent total revenue growth was slightly below our original expectations," said David Speer, chairman and CEO. "Both our total revenue and organic revenue growth rates in the second quarter were approximately 100 basis points lower than forecasted in April. We also anticipate similar moderating demand levels in the second half of 2011. As a result, we have modestly adjusted our third quarter revenue assumptions as well as our full-year earnings forecast. Nonetheless, we still believe overall end markets continue to be in a long-term recovery mode."
The company is forecasting 2011 third quarter diluted income per share from continuing operations to be in a range of 95 cents to $1.03. The midpoint of this earnings range represents 24 percent growth versus the third quarter of 2010. The third quarter forecast assumes a total revenue growth range of 15 percent to 18 percent.
For the 2011 full year, the company is forecasting diluted income per share from continuing operations to be in a range of $4.05 to $4.21 and assumes a total revenue growth range of 16 percent to 18 percent. The full-year forecast includes the 33 cents per share one-time tax benefit recorded in the 2011 first quarter. Excluding the one-time tax gain, the midpoint of the full-year earnings would be $3.80 and would represent a 32 percent increase compared to the year-ago period.
