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Glenview, IL – August 15, 2008
Illinois Tool Works Inc. (NYSE:ITW) today reported an operating revenue increase of 11.4 percent for the three months ended July 31, 2008. The double-digit increase in revenue growth for the three months was due to contributions from translation, acquisitions and base revenues.
On a segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below.
(% change for 3 months ended July 31, 2008 versus prior year period) *Industrial Packaging: + 16.7 % *Power Systems and Electronics: + 17.0 % *Transportation: + 8.5 % *Construction Products: + 7.4 % *Food Equipment: + 13.3 % *Polymers and Fluids: + 29.8 % *Decorative Surfaces: + 4.5 % *All Other: + 5.0 %
Looking ahead, the Company is forecasting a third quarter 2008 diluted income per share from continuing operations of $0.93 to $0.99. The 2008 third quarter forecast assumes a total company revenue growth range of 10 percent to 14 percent. The Company is forecasting full-year 2008 diluted income per share from continuing operations range of $3.40 to $3.52. The full-year forecast assumes a total company revenue growth range of 9 percent to 12 percent. The full-year forecast also reflects a 22 cent after-tax charge to earnings taken in the first quarter due to impairment and European tax charges.
On August 11, 2008, the Company announced a plan to divest its Decorative Surfaces and Click Commerce businesses. These units, totaling approximately $1.3 billion in annual revenues, will be reclassified as part of discontinued operations by the end of the 2008 third quarter. Accordingly, at that point in time the Company will revise its forecasts for income per share from continuing operations for the 2008 third quarter and full year.
The statements regarding the Company's 2008 third quarter and full-year forecasts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks, uncertainties and other factors, which could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially from the Company's expectations are set forth in ITW's Form 10-Q for the 2008 second quarter.
With $16.2 billion in revenues, ITW is a diversified and value-added manufacturer of highly engineered components and industrial systems and consumables. The Company consists of approximately 825 business units in 52 countries and employs some 60,000 people.
CONTACT: John Brooklier, 847-657-4104 or jbrooklier@itw.com
