Snap-On Inc.'s (SNA) fourth-quarter earnings fell 38%, with
results still topping analysts' estimates, as the tool maker saw
weakness in its financial-services arm and continued sales
declines.
Chairman and Chief Executive Nick Pinchuk noted the prior-year
profit was a record and that the latest quarter showed continued
sequential growth. Snap-On has seen sales drop as demand has fallen
during the economic downturn as construction and home-improvement
projects have slowed.
Snap-On reported a profit of $36.6 million, or 63 cents a share,
down from $58.6 million, or $1.01 a share, a year earlier. Revenue
dropped 7.4% to $618.1 million.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 55 cents on $615 million in revenue.
Gross margin rose to 46% from 44.8%.
Operating profit at its commercial and industrial segment, the
biggest segment by revenue, fell 45% while sales declined 7.5%.
Financial-services revenue dropped by two-thirds as the segment
swung to a loss.
Shares closed at $42.93 Wednesday and were inactive premarket.
The stock has risen 41% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com