Illinois Tool Works reports revenue decline

Illinois Tool Works Inc., the maker of Hobart food mixers and Duo-Fast nail guns, said third-quarter profit will be higher than it previously expected because of improvements in the auto and construction markets.

Income from continuing operations will be 48 cents to 56 cents, the Glenview-based company said today in a statement. Illinois Tool in August forecast profit of 39 cents to 51 cents. The average estimate of 18 analysts in a Bloomberg survey was 47 cents a share.

Illinois Tool said base revenue improved "modestly" in the three months ended Aug. 31 compared with the previous three months amid better automotive and construction markets. Operating revenue, which includes sales from acquisitions and divestitures, fell from a year earlier in all divisions.

Revenue in the third quarter will increase 3 percent to 6 percent from the previous quarter, Illinois Tool said today. That's higher than the company's August forecast range of a decline of 2 percent to a 4 percent gain.

ITW fell 33 cents to $43.87 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 25 percent this year.