Illinois Tool Works Trims Outlook as Demand Moderates

By Dean Seal

Illinois Tool Works trimmed its earnings and revenue guidance for the year, citing demand trends and foreign currency exchange impacts exiting the second quarter.

The industrial products and equipment maker said it now expects earnings of $10.30 to $10.40 a share this year, shaving 30 cents off the upper end of its prior guidance. It also now expects sales to be flat for the year, instead of up 1% to 3% as previously projected.

Chief Executive Christopher O'Herlihy said demand is moderating across the company's portfolio, which has been partially offset by its efforts to boost margin.

For the second quarter, the Glenview, Ill.-based company posted a profit of $759 million, or $2.54 a share, compared with $754 million, or $2.48 a share, in the same quarter a year ago.

Analysts surveyed by FactSet had been expecting earnings to edge down to $2.47 a share.

Revenue declined 1% to $4.03 billion, below analyst projections for $4.08 billion, according to FactSet. The drop was largely driven by foreign currency translation, with the top line nearly flat on an organic basis.

Shares rose 3% to $255.51 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 30, 2024 08:44 ET (12:44 GMT)

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