Oct 30 (Reuters) - Illinois Tool Works raised its 2024 profit forecast on Wednesday, citing gains from a recent divestiture and a lower projected tax rate, sending the shares of the company up by 2.72% before the opening bell.
The company, however, reported a decline in quarterly revenue as high borrowing costs and persistent inflation dampened spending for fasteners and other industrial tools and equipment supplied by the Illinois-based firm.
ITW now expects an annual profit of $11.63 to $11.73 per share, from the previous range of $10.30 to $10.40. The company maintained its revenue and organic growth to be approximately flat based on current levels of demand and foreign currency exchange rates.
In August, ITW sold its noncontrolling equity interest in construction material supplier Wilsonart, with proceeds of $395 million and resulting in a pre-tax gain of $363 million.
The company reported a per-share profit for the quarter ended Sept. 30 at $3.91, compared with the $2.55, a year ago. Excluding gains from the divestiture, adjusted per-share profit was $2.65, representing a 4% increase.
Its third-quarter revenue declined 2% to $4 billion.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Vijay Kishore)
((pratyush.thakur@thomsonreuters.com;))
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