Dec. 17 (Bloomberg) -- Illinois Tool Works Inc., the maker of Duo-Fast nail guns and Wilsonart countertops, cut its full- year earnings forecast as lower-than-expected sales in North America and acquisitions hurt profit.

The company now forecasts full-year earnings of $3.32 to $3.36 a share, Illinois Tool said today in a statement. Last month, the Glenview, Illinois-based company forecast earnings of $3.36 to $3.40 a share. The average of 18 analyst estimates compiled by Bloomberg was for 2007 earnings of $3.38.

Illinois Tool has stepped up expansion into foreign markets through acquisitions, reducing its dependence on the U.S. to about 50 percent of sales from 65 percent a decade ago. In the third quarter, it bought 18 companies. Sales from overseas units owned at least a year increased 5.1 percent in the third quarter, while such sales in North America rose only ``modestly.''

For the fourth quarter, Illinois Tool cut its forecast to 82 cents to 86 cents a share. Analysts, on average, projected earnings of 88 cents. Illinois Tool fell 68 cents to $55.90 on Dec.14 in New York Stock Exchange composite trading.

To contact the reporter on this story: Will Daley in Chicago at wdaley2@bloomberg.net

Last Updated: December 17, 2007 08:50 EST