DOW JONES NEWSWIRES Illinois Tool Works Inc.'s (ITW) fourth-quarter earnings were up 32% as margins improved and revenue grew in the double digits in both the transportation and power-systems and electronics segments. The diversified industrial manufacturer also forecast current-quarter earnings of 89 cents to 97 cents a share on revenue growth of 6% to 9%, while analysts surveyed by Thomson Reuters expect 98 cents on 4% revenue growth. The company also expects full-year earnings for this year of $4.02 to $4.26 a share on 5% to 8% revenue growth. Analysts were expecting $4.14 on 7% revenue growth for the year. The company--which makes products as diverse as commercial refrigerators, plastic packaging and industrial adhesives--has improved results in recent quarters as a rebound in manufacturing prompted businesses to restock the inventories they let dwindle in the downturn. But the company has previously warned that demand appeared to be moderating. While it expected most of its end-market to remain relatively strong through the end of 2011, in December it forecast lower base revenue growth in 2012. Illinois Tool reported a profit of $442.2 million, or 91 cents a share, up from $335.7 million, or 67 cents, a year earlier. Earnings from continuing operations rose to 90 cents from 66 cents. Revenue jumped 10% to $4.32 billion. Its December projection was earnings from continuing operations of 86 cents to 94 cents a share on revenue growth of 9.5% to 12.5%. Gross margin rose to 35.2% from 33.4%. Revenue in the transportation segment, which supplies automotive components, jumped 21%. Its power-systems and electronics segment, which includes its Miller Electric welding business, saw a 16% revenue increase. Shares closed Monday at $53.20 and were inactive premarket. The stock has risen 14% so far this year. -By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
