Illinois Tool Works Narrows 2023 Guidance Amid Labor Strikes in Automotive Industry
By Denny Jacob
Illinois Tool Works narrowed its 2023 guidance in response to ongoing labor disputes in the automotive industry.
The manufacturing company forecast earnings per-share of $9.65 to $9.85 for 2023, compared with prior guidance of $9.55 to $9.95. It said the guidance includes a 12 cent per share adjustment for the estimated fourth-quarter impact of ongoing labor disputes.
The Glenview, Ill.-based company guided for revenue growth in the year between one percent and two percent with organic growth in the range of two percent and three percent based on current levels of demand exiting the third quarter as well as the disruptions to the automotive industry from labor actions.
"We anticipate some impact from ongoing automotive industry labor actions on our Automotive OEM segment in the fourth quarter," said Chief Executive Scott Santi, who added the company still expects to deliver a strong performance in 2023.
The United Auto Workers strike against General Motors, Ford Motor and Chrysler parent Stellantis, now in its sixth week, has sent about 40,000 workers to picket lines across the three companies, or about 27% of their unionized U.S. factory workers. The latest escalation came Monday, when about 6,800 workers walked off the job at a Stellantis pickup-truck plant in suburban Detroit.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
October 24, 2023 09:02 ET (13:02 GMT)
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