ITW Announces a Revision to First Quarter 2010 Earnings Forecast Due to Recently Enacted Health Care Legislation
GLENVIEW, Ill., March 30 /PRNewswire-FirstCall/ -- Illinois Tool Works Inc. (NYSE: ITW) today announced that as a result of certain provisions in the recently enacted Patient Protection and Affordable Health Care program, future Medicare prescription drug subsidies received by the Company for retiree prescription drug coverage will now be taxable. As a result, the Company expects to record a discrete tax adjustment of $22 million, or 4 cents of diluted income per share from continuing operations, in its 2010 first quarter results to reflect this change in tax treatment. This discrete tax adjustment was not included in the Company's March 15, 2010 revised earnings forecast.
Accordingly, the Company now is forecasting first quarter 2010 diluted income per share from continuing operations to be in a range of $0.48 to $0.56. On March 15 the Company had revised its earnings range upward to $0.52 to $0.60 to reflect improving operating efficiencies and operating margins. The Company now also is revising its full-year 2010 forecasted diluted income per share to be in a range of $2.39 to $2.89. The prior full-year earnings range was $2.43 to $2.93.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitations, statements regarding diluted income per share from operations, a discrete tax adjustment, and the Company's related forecast. These statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially from the Company's expectations are set forth in ITW's Form 10-K for 2009.
With $13.9 billion in revenues, ITW is a multinational manufacturer of a diversified range of value-adding and short-lead time industrial products and equipment. The Company consists of approximately 840 business units in 57 countries and employs approximately 59,000 people.
SOURCE Illinois Tool Works Inc.