Illinois Tool Works reports dour revenue on slow demand, UAW strike hit

Illinois Tool Works

01/02/2024 14:33

Feb 1 (Reuters) - Illinois Tool Works  ITW.N  missed
analysts' expectations for fourth-quarter revenue on Thursday,
as the industrial tool maker took a hit from lower customer
spending and the UAW strikes, sending its shares down nearly 3%
before the bell.
    High borrowing costs have forced companies to cut down
expenses, causing a slowdown in demand for Illinois Tool Works
that manufactures industrial equipment for clients in the
automotive, construction and food equipment industries across
the globe.
    In October, the company forecast a hit to its automotive
segment due to a workers' strike at Ford Motor  F.N , General
Motors  GM.N  and Stellantis  STLAM.MI . The Detroit Three
automakers are major customers for Illinois Tool Works.
    Total revenue for Illinois Tool Works for the quarter ended
Dec. 31 rose marginally to $3.98 billion from a year earlier and
came in below analysts' average expectation of $4.01 billion,
according to LSEG data.
    Net income fell to $717 million, or $2.38 per share, from
$907 million, or $2.95 per share.

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