Illinois Tool Works Q3 EPS Up 9%, Trims FY Earnings Outlook

(RTTNews) - Multi-industrial manufacturing company Illinois Tool Works Inc. (ITW) Wednesday announced a decline in third quarter net income, while earnings per share increased 9 percent from the prior year. Excluding currency impacts, earnings per share would have climbed 18 percent from the previous year. Revenue for the quarter was down 9 percent, reflecting foreign currency impacts and deteriorating end market trends in Welding and test and measurement and electronics.

Looking ahead, the company reduced its full year earnings per share, in view of lower demand level. Excluding currency impact, full year earnings would have increased 18 percent.

Third quarter net income was $511 million, down from $531 million in previous year. Earnings per share increased to $1.39 from $1.34 a year ago. On average, 17 analysts polled by Thomson Reuters expected $1.36 per share. Analysts estimates usually exclude special item.

Revenue for the quarter increased to $3.354 billion from $3.692 billion last year. Wall Street expected $3.43 billion.

For the full year, the company expects a reduction of $0.05 or one percent at the midpoint in its full year earnings per share guidance in a range of $5.05 to $5.15 per share. The Street is looking for $5.13 per share on revenue of $13.56 billion.

Organic revenue for the full year is projected to be down one percent to flat, including one percentage point impact from PLS.

For the fourth quarter, the company expects earnings per share in a range of $1.15 to $1.25, while organic revenue is projected to be down 1 to 2 percent. Analysts are looking for $1.26 per share.

ITW is currently trading down $1.79 or 2.10 percent on volume of 457 thousand shares.