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ITW Reports 21 Percent Decrease in Operating Revenues for Three Months Ended February 28, 2009; Company Lowers First Quarter 2009 Forecast

Posted on: Monday, 16 March 2009, 07:00 CDT

GLENVIEW, Ill., March 16 /PRNewswire-FirstCall/ -- Illinois Tool Works Inc. (NYSE: ITW) today reported an operating revenue decrease of 21 percent for the three months ended February 28, 2009. The revenue decline for the three months was due to a 20 percent decrease in base revenues and a 7 percent fall off in contributions from currency translation. Acquisitions contributed 7 percent to revenues in the period. The further decrease in revenues versus the Company's February 16, 2009 release was primarily related to significantly lower than expected end market activity in North America, Europe and Asia in January and February.

On a segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below.

(% change for 3 months ended February 28, 2009 versus prior year period)

*Industrial Packaging: - 27.7 % *Power Systems and Electronics: - 26.9 % *Transportation: - 25.0 % *Food Equipment: - 15.5 % *Construction Products: - 31.7 % *Polymers and Fluids: + 1.2 % *All Other: - 12.0 %

In January and February 2009, the Company has experienced significantly weaker demand across worldwide end markets versus its original expectations and expects similar trends in March. As a result, the Company is now forecasting first quarter 2009 diluted income per share from continuing operations to be in a range of $0.08 to $0.16. The 2009 first quarter forecast assumes a total Company revenue range of - 26 percent to - 22 percent versus the prior guidance revenue range of - 17 percent to - 11 percent. The Company will review its 2009 forecast as part of its first quarter earnings release and conference call on April 16, 2009.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitations, statements regarding end markets, revenues, diluted income per share from continuing operations and the Company's related forecasts. These statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially from the Company's expectations are set forth in ITW's Form 10-K for 2008.

With $15.9 billion in revenues, ITW is a multinational manufacturer of a diversified range of value-adding and short lead-time industrial products and equipment. The Company consists of 875 business units in 54 countries and employs some 65,000 people.

SOURCE Illinois Tool Works Inc.

Source: PR Newswire

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