By Illinois Tool Works, a manufacturing company based in Glenview, Illinois, has revised its 2023 guidance due to ongoing labor disputes in the automotive industry. The company now forecasts earnings per-share of $9.65 to $9.85 for 2023, compared to its previous guidance of $9.55 to $9.95. This updated guidance includes a 12 cent per share adjustment to account for the estimated impact of ongoing labor disputes in the fourth quarter.
According to the company, it expects revenue growth of one to two percent for the year, with organic growth in the range of two to three percent. This projection is based on current levels of demand exiting the third quarter as well as the disruptions caused by labor actions in the automotive industry.
Chief Executive Scott Santi stated that they anticipate some impact on their Automotive OEM segment in the fourth quarter due to ongoing labor actions in the automotive industry. However, he still expects the company to deliver a strong performance in 2023.
One of the major labor actions affecting the automotive industry is the United Auto Workers strike against General Motors, Ford Motor, and Chrysler parent Stellantis. This strike, now in its sixth week, has led approximately 40,000 workers to picket lines across these three companies, representing about 27% of their unionized U.S. factory workers. The latest escalation occurred on Monday, with around 6,800 workers walking off the job at a Stellantis pickup-truck plant in suburban Detroit.
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