Illinois Tool Works narrows 2023 profit forecast on expected hit from UAW strikes

Illinois Tool Works

24/10/2023 14:35

Oct 24 (Reuters) - Illinois Tool Works  ITW.N  on
Tuesday narrowed its full-year profit forecast, as it expects
United Auto Workers strikes to dent demand for its automotive
parts in North America.
    The company manufactures industrial equipment that caters to
clients in the automotive, construction and food equipment
industries across the globe.
    The Illinois-based company now expects its full-year profit
to range between $9.65 and $9.85 per share, compared with its
prior expectations of $9.55 to $9.95.
    The company's 2023 profit outlook includes a hit of 12 cents
per share in the fourth quarter due to the UAW's coordinated
labor action.
    More than 40,000 union members working at Ford  F.N ,
General Motors  GM.N  and Stellantis  STLAM.MI  are now on
strike since the walkouts began on Sept. 15.
    If the issue remains unresolved, the strike could impact
organic growth of the automotive segment of Illinois Tool Works
by about 3% to 5% in the fourth quarter, according to analysts
at J.P Morgan.
    Businesses ranging from airlines to auto parts makers are
starting to feel the heat from the strike by hourly workers at
the Detroit Three automakers.
        Illinois Tool Works reported operating revenue of $4.03
billion for third quarter ended Sept. 30, up 0.5% from a year
earlier. Analysts on average had expected $4.09 billion, as per
LSEG data.    
    The company posted a profit of $2.55 per share, compared
with Wall street expectations of $2.46 per share.

 (Reporting by Aishwarya Jain; Editing by Maju Samuel)
 ((Aishwarya.Jain@thomsonreuters.com;))