Illinois Tool Works Inc.  (ITW - Get Report)  shares tumbled on Monday, July 23, after lowering full-year earnings guidance and operating margin, prompting concern about prospects for 3M Co. (MMM - Get Report)  , which reports earnings tomorrow.

Glenview, Ill.-based Illinois Tool said it had earnings of $1.97 a share, which was in-line with analysts' expectations, according to FactSet. Revenue of $3.831 billion was just shy of forecasts calling for $3.838 billion.

Still, five business segments missed revenue expectations, and only two units beat this quarter. The segments that missed include Automotive OEM, Food Equipment, Test and Measurement and Electronics, Polymers and Fluids, and Construction Products.

Illinois Tool Works now expects third-quarter earnings between $1.80 and $1.90 per share, below the FactSet consensus of $1.98 per share.

The equipment manufacturer for automotive, construction and food industries also cut its full-year earnings guidance to a range of $7.50 to $7.70 per share, compared to its previous outlook of $7.60 to $7.80 per share. ITW attributed this revision to an expected 12 cents negative currency impact.

"In addition to currency headwinds, higher costs are expected to be a headwind for ITW in the back half of the year," Jim Cramer and the Action Alerts PLUS team said in an email to subscribers. "To reflect this, management also lowered its full-year operating margin to a range of 24% to 25%, down from a previous guide of 25% to 25.5%."

Because of the change in guidance, the AAP team is not a buyer on today's weakness, but they also aren't sellers.

"We think there is a heightened sense of urgency to restructure," the AAP team said.

Illinois Tool Works is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells ITW? Learn more now.

ITW stock fell 7.9% to $135.35 at about 12:40 p.m. New York time.

ITW's quarterly results and revised guidance puts peer 3M Co. (MMM - Get Report) in focus, which is down 1.4% to $199.19. 3M is scheduled to report quarterly earnings before the opening bell on July 24. The company is expected to report earnings of $2.58 per share on revenue of $8.38 billion, according to analysts surveyed by FactSet.

3M shares fell 1.3% to $199.34 in trading on the New York Stock Exchange as of 12:40 p.m.