UPDATE 1-ITW says sales stabilizing, reclassifies a unit
NEW YORK, June 15 (Reuters) - Illinois Tool Works Inc (ITW.N) said on Monday its revenues have stabilized, and said it would reclassify a unit it failed to sell as a continuing operation.
The diversified manufacturer said its base revenues, excluding acquisitions and currency impact, were down 23 percent in the three months ended May 31. Core revenue declines have remained in a range of down 21 percent to down 25 percent in each of the first five months of 2009, ITW said.
Separately, the company said it was reclassifying a unit to count among continuing operations, which will add 4 cents per share to this quarter's earnings from continuing operations.
ITW said it expects profit from continuing operations of 29 cents to 41 cents a share, compared with average analyst forecasts of 30 cents.
It said last month it would keep the decorative surfaces business because it could not find a buyer willing to pay what it considered a fair price. [ID:nN08502529]
Quarterly sales will be up when compared sequentially with the first quarter, the company said. Its shares closed Friday at $38.08. (Reporting by Nick Zieminski; Editing by Brian Moss)
