Illinois Tool Works Q2 Profit Falls; Updates FY13 Outlook - Quick Facts

(RTTNews) - Illinois Tool Works Inc. (ITW) reported that its second-quarter net income declined to $465 million or $1.03 per share, from $881 million or $1.85 per share in the same quarter last year.

Income from continuing operations for the quarter decreased to $464 million or $1.03 per share from last year's $519 million or $1.09 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items. The latest-quarter included $0.05 of earnings per share dilution due to a pension settlement charge primarily related to the exit of Decorative Surfaces employees from the ITW pension plan.

Excluding the pension settlement charge,adjusted income from continuing operations for the quarter declined to $1.08 per share from $1.02 per share in the prior year.

Operating revenues for the quarter slip to $4.219 billion from $4.463 billion in the prior year quarter. Fourteen analysts had consensus revenue estimate of $4.29 billion for the quarter.

For the 2013 third quarter, the company forecasts income per share from continuing operations to be in a range of $1.06-$1.16 and total revenue growth in a range of 3 percent to 5 percent. Analysts expect the company to report earnings of $1.13 per share for the third-quarter.

Incorporating first half actual results, including the $0.05 of earnings per share dilution for the second quarter pension settlement charge, the company now expects full-year 2013 income per share from continuing operations to be in a range of $4.10-$4.30 and total revenue growth in a range of 0.5 percent to 2.5 percent. Previously, the company had expected full-year income per share from continuing operations to be in the range of $4.15 to $4.35 and total revenue growth in a range of 2 percent to 4 percent. Analysts expect the company to report earnings of $4.23 per share for fiscal 2013.