ITW posted a 5 percent decline in overall revenue from $3.95 billion to $3.76 billion and a 10 percent decline in revenue for the fourth quarter. However, profit grew to $507.4 million from $233.8 million, or to $1.01 per share from $.46 cents per share. The fourth quarter included a gain of 37 cents per share which was due to a tax settlement**. Also from this tax break, profit almost doubled in the fourth quarter. Analysts were expecting ITW to earn $.74 cents per share from continuing operations, however ITW earned $.61 cents per share.
Transportation and Construction products segments were the only segments to post increases in revenue, 9.46 percent and 4.0 percent respectively. Polymers and fluids was almost flat with a 1.1 percent decline. Power systems and electronics, which houses ITW's welding unit, was down 17.8 percent in the quarter because of the overall construction market. However, these revenue figures were expected.
For 2009, ITW profit fell 38 percent from $1.52 billion to $947 million or down from $2.91 per share to 1.89 per share.
Going forward in 2010, ITW is estimated an increase of revenue of 10 to 14 percent. They expect an increase of earnings per share of $2.43 to $2.93 and analysts are expecting earnings of $2.76 per share.