Feb 5 (Reuters) - Illinois Tool Works ( ITW ) on

Wednesday forecast annual profit below Wall Street expectations,

as high borrowing rates and sticky inflation force customers to

slow investments on industrial equipment.

Shares of the company were down 3% before the bell.

Higher borrowing costs have reduced corporate spending,

muting the impact of steady demand from the automotive sector

for the fasteners and parts supplied by the industrial company.

Illinois Tool Works ( ITW ) expects its 2025 profit per share to be

in the range of $10.15 to $10.55, compared with analysts'

estimates of $10.62 per share, as per data compiled by LSEG.

Total revenue fell 1.28% to $3.93 billion in the fourth

quarter ended Dec. 31, from a year earlier. Analysts were

expecting $3.99 billion.

The company reported an adjusted profit of $2.54 per share

for the reported quarter, compared with estimates of $2.50 per

share.