Dow Jones Newswires | Illinois Tools Works Inc. swung to a first-quarter profit and raised its full-year forecast as a global recovery boosted sales of auto parts.

The company now sees earnings in 2010 of $2.72 to $3.08 a share, up from an earlier estimate of $2.43 to $2.93 a share, and projected a second-quarter profit of 74 cents to 86 cents a share on revenue growth of 15 percent to 19 percent. Analysts surveyed by Thomson Reuters projected second-quarter earnings of 69 cents a share and revenue of $3.82 billion, up 12 percent.

The results and outlook signal a continuing recovery for the bellwether
maker of products ranging from fasteners to food service and welding
equipment. Illinois Tools Works’ profit doubled in the prior quarter
after the company struggled to recover from a demand slump that started
in 2008.

Illinois Tool Works reported earnings of $294.3 million, or 58 cents a
share, compared with a loss of $39.4 million, or 8 cents a share, a year
earlier. The latest quarter included a charge of 4 cents a share
related to the recent health-care legislation. Revenue jumped 14 percent to
$3.61 billion.

The company in January projected earnings of 48 cents to 60 cents a
share on revenue growth of 14 percent to 18 percent, generally below analysts’
expectations at the time.

Gross margin increased to 35.6 percent from 31.6 percent.

Sales in the company’s transportation segment, its biggest business,
surged 36 percent on an improving automotive market. Power systems and
electronics revenue increased 13.7 percent.

The stock closed at $48.81 Monday and was inactive in pre-market
trading. Shares have risen 56 percent during the past 12 months.