Illinois Tool's Profit Rises

Led by strength in domestic and overseas end markets, Illinois Tool Works (ITW) posted a 26% rise in net income that was in line with analysts' estimates.

The Glenview Ill.-based manufacturer of industrial systems said earnings rose to $360.4 million, or $1.16 a share, from $284 million, or 92 cents a share, in the same period last year.

Sales were up 17% to $3 billion from $2.56 billion a year earlier.

Analysts had forecast earnings of $1.16 on revenue of $2.97 billion, according to Thomson First Call.

The company attributed its results to overall improved operating margins and eight new acquisitions. In addition, currency translation and a lower effective tax rate boosted earnings by 5 cents a share in the latest quarter.

Due to the anticipated strengthening of these end markets, the company expects third-quarter earnings of $1.05 to $1.11 a share and boosted its full-year earnings expectations to $4.21 to $4.35 a share.

Analysts expect third-quarter earnings to be $1.10 a share and year-end earnings to be $4.33 a share.

Illinois Tool Works was recently trading down $3.25, or 3.5%, to $88.87.

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