Salles Slump But Illinois Tools Affirms Outlook

Illinois Tool Works said sales dropped sharply in the last 3 full months as slowed global demand and tight credit markets continue to pressure businesses. Despite the weakness, however, the engineered products and equipment manufacturer upheld its first-quarter and full-year guidance. On Monday, Illinois Tool Works said the global economic slowdown continued to negatively impact North American, European & Asian markets, resulting in 15.0% drop in operating sales in the 3-month period ended Jan. 31. The company, which regularly issues sales updates for the months it doesn't report quarterly results, said base sales were 16.0% lower than in the prior year and negative currency rates caused a 6.0% drop, but this was largely offset by a 7.0% acquisition-related sales boost.