By Imani Moise
Industrial conglomerate Illinois Tool Works Inc. said its fourth-quarter earnings rose, helped by added revenue from a recent acquisition.
The Glenview, Ill.- based company also backed its fiscal 2017 outlook and forecast first-quarter earnings of $1.39 to $1.49 a share. Analysts surveyed by Thomson Reuters expect $1.44 per share.
Once a serial acquirer, ITW largely has largely remained out of the acquisitions market in recent years as it shed slower-growing businesses in an effort to spur revenue growth. In the third quarter, however, the company bought a fastener suppliers business for about $450 million, which contributed 4% growth to its fourth-quarter top line.
Organic revenue increased 2% over the quarter lead by a 7% jump in organic sales in the automotive original equipment manufacturing segment.
In all for the quarter, Illinois Tool Works reported a profit of $507 million, or $1.45 a share, up from $450 million, or $1.23, a year earlier. Excluding nonrecurring items, the company earned $1.39 a share.
Revenue rose 3.8% to $3.4 billion.
Analysts polled by Thomson Reuters had forecast earnings of $1.37 a share on $3.41 billion in revenue.
Shares, inactive premarket, closed at $127.06 and have risen 14% over the past three months.
Write to Imani Moise at email@example.com
(END) Dow Jones Newswires
January 25, 2017 09:51 ET (14:51 GMT)
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