Illinois Tool Works (NYSE:ITW) revealed on Friday a 14% rise in revenue over the prior three months, prompting the diversified manufacturer to stand by its fourth-quarter earnings outlook despite slower demand in Europe and Asia.
Glenview, Ill.-based Illinois Tool Works said its organic or base revenue increased 7% in the three month period ended October 31, contributing to a 14% overall jump in total operating revenue.
The manufacturer said transportation revenue surged 25%, while polymers and fluids sales were up 23% and power systems and electronics revenue climbed 21%. Food equipment and construction products revenue saw slower growth of 5% and 9%, respectively.
However, Illinois Tool Works warned of some trouble ahead, perhaps due in part to the European sovereign debt crisis and China’s slowing economy.
“Some Asia Pacific and European end markets saw demand moderate in the month of October,” the company said in a statement.
Still, Illinois Tool Works said it anticipates fourth-quarter EPS of 86 cents to 94 cents, right in line with the Street’s view of 90 cents. It also called for 2011 EPS of $4.04 to $4.12, which would beat estimates from analysts for $3.77. The company called for 2011 revenue to climb 15.1% to 15.9%.
Shares of Illinois Tool Works gained 0.41% to $44.56 ahead of Friday’s open, lagging behind a rally of 0.6% on the S&P 500 futures. The company’s stock has slumped close to 17% year-to-date.