ITW Cuts Profit Outlook
ITW Cuts Profit Outlook
Jason Sandefur
Illinois Tool Works Inc. cut its quarterly profit forecast due to the effects of a slowing U.S. economy. ITW, which reported two months of lower-than-expected base revenue growth, now expects to earn 72 cents to 74 cents a share in the fourth quarter, compared with a previous range of 77 cents to 81 cents.
Following the announcement, ITW shares fell 2.4% to $46.75 on the New York Stock Exchange.
“It really reflects the softening of the domestic economy,” Longbow Research senior analyst Eli Lustgarte told Reuters. “We’re going to have to get through the next couple of quarters, which in our view is going to be a little dicey.”
Other U.S. manufacturers have also trimmed their outlook. Agricultural equipment maker Deere & Co., heavy equipment maker Caterpillar Inc., and diversified manufacturer Honeywell International Inc. have all warned of slowing activity. Web: itw.com �2006 FastenerNews.com
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