Illinois Tool Works Raises 3Q Earnings Outlook

GLENVIEW, Ill. (AP) — Illinois Tool Works Inc. on Tuesday lifted its third-quarter forecast for earnings from continuing operations, citing ongoing restructuring efforts and improved discrete end markets.

The industrial equipment maker now expects profit of 48 cents to 56 cents per share in the period, up from its prior forecast of 39 cents to 51 cents per share.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, anticipate third-quarter net income of 47 cents per share.

Illinois Tool Works said its outlook assumes a revenue increase of 3 percent to 6 percent from second-quarter revenue of $3.39 billion. That implies revenue of about $3.5 billion to $3.6 billion. The company previously said it expected revenue would range from 2 percent lower than the second quarter to 4 percent higher.

Analysts expect third-quarter revenue of $3.5 billion.

In July the company said it had spent $98 million on restructuring efforts for the year to date and expected to spend $50 million to $70 million more in the second half of the year.

Shares of Illinois Tool Works advanced 80 cents to $45 in premarket activity.