Business

Illinois Tool net income drops 67% on lower sales

Posted July 21, 2009 11:00 pm

Associated Press

Illinois Tool Works Inc., the maker of Hobart food mixers and Duo-Fast nail guns, said second- quarter profit fell 67 percent as revenue dropped amid the global recession.

Net income declined to $176.6 million, or 35 cents a share, from $528.1 million, or $1.01, a year earlier, the Glenview-based company said today in a statement. Sales dropped 26 percent to $3.39 billion.

Chief Executive Officer David Speer has reduced spending on acquisitions and plans employee cuts to total as much as 13 percent of the workforce by year-end to trim expenses as construction and auto demand slide. The company's units in those industries accounted for 26 percent of sales in the first quarter.

"A number of ITW's key end markets are very weak and could slow further," Ann Duignan, an analyst with JPMorgan Chase & Co., said in a July 9 report.

Illinois Tool rose 26 cents to $40 at 8:19 a.m. before the regular open of New York Stock Exchange trading.

Article Comments

Article Categories
Business Communities Content Providers Cook County Counties Glenview

Article Comments

Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.