ITW Trims Sales & Earnings Forecasts
ITW Trims Sales & Earnings Forecasts
Jason Sandefur
Weakness in the U.S. auto industry and home construction prompted Illinois Tool Works Inc. to lower its earnings and sales forecasts for the remainder of 2006.
ITW now expects sales to rise in a range of 3% to 4% in the third quarter, down from its previous forecast of 4% to 6%. For the year, it sees sales growth in its base businesses in the range of 4.4% to 5.2%.
Analysts have expected sales of $3.55 billion for the third quarter and $14.11 billion for the year.
For the three-month period ending in August, North American Engineered Products, including fasteners, saw revenue rise 11%, while International Engineered Products revenue climbed 9%.
The revised forecasts did not seem to worry investors.
“It’s a well-managed company and it’s trading at valuations that we haven’t seen in 15, 16 years,” Thomas Leritz of Argent Capital Management told Reuters. “What we’re visualizing is a slower economy, but one that creates less inflation. In other words, a soft landing.” Web: itw.com �2006 FastenerNews.com
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