By Michael Calia
Illinois Tool Works Inc. said foreign currency pressures weighed
on its sales in the most recent quarter, although its profit
increased as costs declined.
The diversified manufacturer, which backed its guidance for the
year, has sought to scale back its business portfolio by shedding
slower-growing assets, including its $3.2 billion sale of its
industrial packaging business last year.
Its automotive group, meanwhile, has been the strongest
performer of late as the U.S. auto industry has continued to post
robust sales and demand. Revenue for the segment rose 2.7% to $620
million in the most recent quarter.
ITW said its earnings for the period were $450 million, or $1.16
a share, up from $408 million, or 93 cents a share, a year ago. On
the basis of continuing operations, the company posted $1.18 a
share in earnings.
Revenue fell 1.4% to $3.5 billion, reflecting negative currency
effects. Organic revenue rose 2.3%.
ITW in October had projected per-share earnings of $1.07 to
$1.15 and flat revenue.
The company said organic revenue growth in North America was
driven by welding, food equipment and automotive OEM demand.
Input costs fell 2.7%, while selling, administrative and
research and development expenses declined 6.5%.
Write to Michael Calia at michael.calia@wsj.com
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