Illinois Tool adjusts earnings predictions

GLENVIEW — Illinois Tool Works Inc., which makes industrial tools and products, on Tuesday adjusted its second-quarter and full-year earnings predictions to account for the planned sales of three of its businesses and the effects of a $550 million stock buyback.

The Glenview, Ill., company said it expects to post income from continuing operations of 95 cents to $1.01 per share, up from an adjusted profit from continuing operations of 79 cents per share in the same quarter last year.

The projection assumes sales growth of 17 percent to 20 percent, implying revenue of $4.77 billion to $4.89 billion for the quarter.

Excluding the reclassification for discontinued operations and effects of the stock buyback, Illinois Tool said it expects a profit of 99 cents to $1.05 per share.

Analysts, on average, expect earnings of $1.04 per share for the quarter on sales of $4.77 billion, according to a FactSet survey.

For the full year, the company now expects to post income from continuing operations of $4.08 to $4.26 per share on sales growth of 16 percent to 18 percent, implying sales of $18.41 billion to $18.73 billion.

The full-year forecast includes a one-time tax benefit of 33 per share and compares with a full-year 2010 adjusted profit from continuing operations of $2.89 per share.

Excluding the reclassification for discontinued operations and stock buyback, the company projected a profit of $4.16 to $4.34 per share.

Analysts expect 2011 earnings of $3.96 per share on $18.48 billion in sales.

Illinois Tool shares rose 46 cents to $54.87 in late morning trading.