Illinois Tool Works Inc. (ITW) boosted its third-quarter forecast, crediting its restructuring actions and stronger markets, as it said revenue the past three months is down 21%.

The bellwether maker of products ranging from fasteners to food service and welding equipment now expects per-share earnings from continuing operations of 48 cents to 56 cents. The forecast assumes a 3% to 6% revenue rise from the second quarter. The company had projected earnings of 39 cents to 51 cents and revenue ranging from down 2% to up 4% sequentially.

Illinois Tool was at the front lines as the sputtering economy took its toll on the industrial sector and customers sharply reduced orders. Chairman and Chief Executive David B. Speer has said the recovery in the U.S. economy would be uneven and prolonged, with significant improvement in the housing industry not likely until 2011.

But Tuesday, the company noted improvements in markets such as automotive and construction. Revenue fell in all segments for the latest three months, led by the power systems and electronics unit's 37% drop. Double-digit declines were reported by all segments. Transportation fell 9.2%.

Illinois Tool shares closed Monday at $45.20 and didn't trade premarket. The stock is up 26% this year.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com