Glenview, IL, Oct. 16--Illinois Tool Works Inc. today reported that 2003 third quarter income per diluted share from continuing operations increased 10% versus the prior year period primarily due to contributions from currency translation, improved operating performance and acquisitions in the company's North American and international business units. Operating revenues increased 5% and operating income grew 7% in the third quarter.
Income from continuing operations in the 2003 third quarter was $269.8 million, or 87 cents per diluted share, compared with $244.3 million, or 79 cents per diluted share, in the prior year period. In addition to contributions from currency translation, the increase in the company's third quarter income was driven by the modest growth of North American revenues and operating income in September as well as contributions from selected Specialty Systems international business units. Leasing and Investments also contributed to third quarter income growth.
North American Engineered Products third quarter revenues and operating income increased 1% and 2%, respectively, as strength in the ITW construction and Wilsonart businesses offset weakness from the automotive units. As a result, third quarter operating margins of 16.9% were 20 basis points higher than the year earlier period. For the nine month period, revenues were flat and operating income declined 8%. Operating margins of 16.3% were 140 basis points lower than the year ago period.
Looking ahead, the company continues to be uncertain about economic conditions for the 2003 fourth quarter and the related impact on North American and international end markets. For full-year 2003, however, the company is raising its earnings forecast, with income per diluted share from continuing operations expected to be in the range of $3.23 to $3.33. For the 2003 fourth quarter, the company is forecasting income per diluted share from continuing operations to be in the range of 79 cents to 89 cents.
