ITW Provides Revenue Update (CBE) (GE) (ITW) (MTW)

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Illinois Tool Works Inc. (ITW) reported a 16% year-over-year rise in its operating revenues for the three months ended April 30, 2011. The increase records an 8% growth, which can be ascribed to a hike in base revenue and 5% to acquisitions. Currency translation had a positive 3.0% impact on the revenue. End markets were strong with a solid demand for the company’s products.

Transportation revenue grew by 24% year over year, while Industrial Packaging by about 17%. Power Systems and Electronics registered an increase of 20%. Construction Products grew by 18% and Polymers and Fluids by 24%. Decorative Surfaces grew by 5% while Food Equipment grew by 7% year over year. Revenue from all other sources soared 12%.

Additionally, Illinois Tool Works reaffirmed its fiscal year 2011 guidance provided during the first quarter 2011 financial results release. Earnings per share (EPS) from continuing operations are expected to be within the $4.16-$4.34 range. The range includes a $0.33 per share benefit related to the settlement of an Australian tax case in 1Q11 and operating results from the finishing business to be sold to Graco Inc. Revenue growth is maintained at a range of about 16%-18%.

For the second quarter of fiscal 2011, Illinois Tool reiterated its EPS guidance that ranges from $0.99-$1.05 based on total revenue growth expectations in the range of 17% 20%.

llinois Tool Works is one of the leading manufacturers of industrial products and equipment. It is quite clear that the company’s growth stems from its ability to develop new and improved products as well as broadening the array of application of established products and improvising and developing n push.

The Company’s prime competitors include the likes of Cooper Industries plc (CBE), General Electric Co. (GE), and Manitowoc Co. Inc. (MTW). We currently maintain our Outperform recommendation on the stock.

COOPER INDS PLC (CBE): Free Stock Analysis Report

GENL ELECTRIC (GE): Free Stock Analysis Report

ILL TOOL WORKS (ITW): Free Stock Analysis Report

MANITOWOC INC (MTW): Free Stock Analysis Report

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