Illinois Tool 3Q Profit Falls

GLENVIEW, Ill. (AP) — Illinois Tool Works Inc., which makes industrial equipment, said Tuesday its third-quarter profit fell 33 percent on lower sales, charges and a higher tax rate.

Illinois Tool earned $302.4 million, or 60 cents per share, compared with $453.5 million, or 87 cents per share, for the same quarter last year. Excluding discontinued operations, the company earned $303 million, or 60 cents per share, down from $464.6 million, or 89 cents per share.

Revenue fell 20 percent to $3.58 billion from $4.46 billion.

Analysts polled by Thomson Reuters expected a profit of 53 cents per share on $3.57 billion in revenue.

The recent quarter's results included an impairment charge of $12 million, or 2.5 cents per share. In addition, the company's effective tax rate rose to 32.5 percent from 28 percent, reducing the recent quarter's earnings by 3.5 cents.

The company said it incurred $31 million of restructuring expense in the quarter, bringing this year's restructuring total to $128 million. It expects to incur an additional $25 million to $40 million of restructuring charges in the fourth quarter.

In morning trading, Illinois Tool shares rose $1.38, or 3 percent, to $47.60.