Illinois Tool Works
trimmed guidance for the third quarter and year, citing the housing slowdown and falling U.S. auto production.
The Glenview, Ill., engineered components maker said it expects to make 78 cents to 80 cents a share for the quarter ending this month and $3.03 to $3.07 for the year. Analysts surveyed by Thomson Financial were looking for 81 cents for the quarter and $3.08 for the year.
Illinois Tool said revenue for the three months through Aug. 31 rose 12% from a year ago, with 5% of that growth coming organically and 7% from acquisitions.
"While base revenue growth benefited from relatively strong international and North American end market demand in a number of the company's manufacturing related businesses, the North American new housing market weakened in August," Illinois Tool said. "The company expects some additional weakness in this market in September and in the fourth quarter."
For the third quarter, Illinois Tool expects base revenue to rise 3%-4% from a year ago. For the year, base revenue should grow in a range of 4.4%-5.2%.