Illinois Tool Works raises 2024 profit forecast

Illinois Tool Works

30/04/2024 14:23

April 30 (Reuters) - Illinois Tool Works  ITW.N  raised
its annual profit forecast on Tuesday and beat market estimates
for first-quarter profit, even as revenue dropped 1%.
    Elevated loan expenses have constrained business spending,
dulling the impact of steady demand from the automotive industry
for the Illinois-based company's fasteners and other components
used to make vehicles.
        "Looking ahead, we expect current levels of demand
across our end markets and favorable year-over-year comparisons
will translate to positive organic growth through the balance of
the year," CEO Christopher O'Herlihy said.
    Excluding a $117 million benefit from a one-time accounting
change, its operating margin improved 120 basis points to 25.4%
"as enterprise initiatives contributed 140 basis points", the
company said. 
    Illinois Tool Works now expects adjusted profit per share in
the range of $10.30 to $10.70, compared with its previous
forecast of $10 to $10.40.    
    Its quarterly adjusted profit of $2.44 per share surpassed
analysts' average estimates of $2.36, according to LSEG data.   
    However, revenue for the quarter fell to $3.97 billion and
missed estimates of $4.03 billion.

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika
Syamnath)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))