Tuesday, August 2, 2011

Investopedia: Illinois Tool Works Spooks The Street

Whether it's the wrangling over the debt limit in Washington, the ongoing problems in Europe, or the shaky economic data coming out in recent months, institutional investors are playing defense these days. So while it looks like the biggest problem Illinois Tool Works (NYSE:ITW) has is that its early-cycle businesses are slowing and the company is transitioning through the cycle, investors seem to be pretty nervous about the stock, the company, and the broader industrial sector. 

Iffy Second Quarter Results  
To be sure, there were some spots on the second quarter for Illinois Tool Works. Reported revenue rose more than 17%, but organic growth was more on the order of 6%. That is really not so bad relative to other large industrial conglomerates like United Technologies (NYSE:UTX), General Electric (NYSE:GE) or Danaher (NYSE:DHR), but it does represent a significant deceleration from the first quarter, and it was not great relative to expectations. 


To read the complete piece, click below:
http://stocks.investopedia.com/stock-analysis/2011/Illinois-Tool-Works-Spooks-The-Street-ITW-UTX-GE-DHR-LECO-ETN-EMR0802.aspx

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