Illinois Tool Works Q4 Profit Down, But Tops Estimate; Reiterates 2014 Outlook

(RTTNews) - Industrial equipment maker Illinois Tool Works Inc. (ITW) said that its fourth-quarter net income declined to $408 million or $0.93 per share, from $979 million or $2.11 per share in the same quarter last year.

The company reported fourth quarter earnings per share from continuing operations of $0.92, three cents higher than the midpoint of the Company's forecast. The better-than-expected earnings per share was driven by strong contributions from the Company's enterprise initiatives as well as improving organic revenue growth from both international and North American geographies.

Income per share from continuing operations slipped to $0.92 from the prior year's $1.99. Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted income per share from continuing operations increased to $0.92 from the prior year's $0.65. Operating revenues for the quarter grew to $3.554 billion from $3.484 billion in the prior year quarter. Sixteen analysts had consensus revenue estimate of $3.52 billion for the quarter.

For the 2014 first quarter, the company forecasts earnings per share to be in a range of $0.93 to $1.01 and expects total revenue growth in a range of 3 percent to 6 percent. Analysts expect the company to report earnings of $0.98 per share and revenues of $3.57 billion for the first-quarter.

The company reiterated its full-year 2014 earnings forecast that it presented in December at its annual investor and analyst day in New York City. The Company continues to expect full-year 2014 earnings per share to be in a range of $4.30 to $4.50. This earnings per share range assumes a full-year total revenue growth range of 2 percent to 4 percent and full-year organic growth of 2 percent to 3 percent. Street currently is looking for fiscal year 2014 earnings of $4.45 per share on annual revenues of $14.83 billion.