(ITW) Illinois Tool Works’ May-end Revenue Update

Illinois Tool Works Inc. (ITW) reported an 18% year-over-year rise in its operating revenues for the three months ended May 31, 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 5.0% impact on the revenue. End markets were strong with a solid demand for the company’s products.

Transportation revenue grew by 26% year over year, while Industrial Packaging rose by about 19%. Power Systems and Electronics registered an increase of 21%. Construction Products grew by 14% and Polymers and Fluids by 27%. Decorative Surfaces grew by 9% while Food Equipment grew by 10% year over year. Revenue from all other sources soared 13%.

Additionally, Illinois Tool Works reaffirmed its fiscal year 2011 guidance provided during the release of its first quarter 2011 financial results. 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% to 20%.

Illinois Tool Works, which is on a growth trajectory, is one of the leading manufacturers of industrial products and equipment. Evidently, the company’s growth stems from its ability to develop new and improved products, 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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