Illinois Tool Works forecasts 2025 profit below estimates
Feb 5 (Reuters) - Illinois Tool Works ITW.N on Wednesday forecast annual profit below Wall Street expectations, as high borrowing rates and sticky inflation force customers to slow investments on industrial equipment.
Shares of the company were down 3% before the bell.
Higher borrowing costs have reduced corporate spending, muting the impact of steady demand from the automotive sector for the fasteners and parts supplied by the industrial company.
Illinois Tool Works expects its 2025 profit per share to be in the range of $10.15 to $10.55, compared with analysts' estimates of $10.62 per share, as per data compiled by LSEG.
Total revenue fell 1.28% to $3.93 billion in the fourth quarter ended Dec. 31, from a year earlier. Analysts were expecting $3.99 billion.
The company reported an adjusted profit of $2.54 per share for the reported quarter, compared with estimates of $2.50 per share.
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