ITW Expects Expects Q1 EPS of $1.14 to $1.20

Illinois Tool Works Inc. ITW today reported a total operating revenue increase of 11 percent for the three months ended February 28, 2011 compared to the year-ago period. Based on the elimination of the one month lag for international results and the resulting calendar year reporting format, the Company is forecasting 2011 first quarter diluted income per share from continuing operations to be in a range of $1.14 to $1.20. This first quarter range includes a favorable discrete tax adjustment of $166 million, or $0.33 of diluted income per share, associated with a February 2011 Australian tax court decision. The 2011 first quarter forecast assumes a total revenue growth range of 12 percent to 15 percent. For full-year 2011, the Company is forecasting diluted income per share from continuing operations to be in a range of $3.93 to $4.17. The 2011 full-year forecast assumes a total revenue growth range of 11.5 percent to 14.5 percent. As part of the change to the calendar year reporting format, the Company is restating its 2010 financial results. As a result, 2010 pro forma full-year diluted income per share from continuing operations of $2.99 was $0.04 lower than previously reported. The adjustment to 2010 full-year earnings was principally related to fourth quarter international results that were negatively impacted by adverse weather, increased price/cost pressures and one less sales day versus the 2009 fourth quarter.