New book by Larry Connors Click here Improve your trading - See how
Net income for the third quarter was $302.42 million or $0.60 per share, lower than $453.52 million or $0.87 per share last year.
Net income from continuing operations declined to $302.96 million or $0.60 per share from $464.59 million or $0.89 per share last year.
On an average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share. Analysts' estimates typically exclude special items.
As part of the third quarter impairment review, the company recorded $12 million of impairment or a reduction of 2.5 cents of earnings, related last year's acquisition of a truck remanufacturing and parts/service business.
The company's effective tax rate for the quarter was 32.5%, higher than the previously forecasted third-quarter tax rate of 28%, which reduced earnings by 3.5%. The higher tax rate was due to the non-deductibility of the goodwill associated with impairment and several discrete tax adjustments.
The Glenview, Illinois-based company's operating revenues declined 19.8% to $3.58 billion from $4.46 billion in the prior year. Analysts were looking for revenues of $3.57 billion.
In the preceding second quarter, Illinois has reported net income of $176.6 million or $0.35 per share, on operating revenues of $3.39 billion.
Illinois noted that operating revenues for the third quarter were better than the prior quarter, as worldwide end markets continued to stabilize, or in some cases, modestly improved.
The company's base revenues for the quarter declined 17.9% compared with a year ago, with North American base revenues decreasing 21.6% and international base revenues declining 13.8%. The company noted that acquisitions added 3.6% to revenues, while translation negatively impacted revenues by 5.6%.
Segment-wise, worldwide revenues for the Power Systems and Electronics segment declined 34.6%, with base revenues decreasing 34.2%. Revenues from Transportation segment declined 7%, with base revenues decreasing 7.9%.
Worldwide revenues from the Food Equipment segment declined 10.2%, with base revenues decreasing 6.3%. North American food equipment base revenues decreased 8% and international food equipment base revenues fell 4.9%.
For the quarter, operating margins declined 150 basis points to 13.5%, while base margins improved 20 basis points compared with the year-earlier quarter. Illinois recorded operating income of $483.6 million, lower than $671 million in the previous year.
For the nine-month period, net income plunged to $439.61 million or $0.88 per share from $1.29 billion or $2.45 per share in the comparable period. Year-to-date, operating revenues were $10.12 billion, lower than $13.15 billion in the prior year.
Further, the company incurred $31 million of restructuring expense in the third quarter, bringing year-to-date restructuring total to $128 million. The company expects to incur between $25 million and $40 million of restructuring in the fourth quarter.
Looking ahead, for the fourth quarter, the company anticipates earnings from continuing operations to be in a range of $0.54 to $0.66 per share. The fourth quarter forecast assumes a total revenue range of negative 1% to positive 5%, compared with the third quarter. Analysts currently expects earnings of $0.56 per share for the fourth quarter on revenues of $3.63 billion.
ITW is currently trading at $47.24 per share, up 2.03% on the New York Stock Exchange on a volume of 4.37 million shares. For the past 52 weeks, the stock has ranged between $25.60 and $48.08.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
