DOW JONES NEWSWIRES
Snap-on Inc.'s (SNA) first-quarter earnings soared 53% as the
tool maker Thursday reported strong sales in emerging markets and
its finance arm swung to a profit.
The results easily topped Wall Street expectations.
The company controls a big chunk of the professional tool
market, where it competes with Stanley Black & Decker Inc.'s
(SWK) Mac Tools unit and Danaher Corp.'s (DHR) Matco. It gets more
than half its sales from the U.S. and from the auto sector, but has
sought growth in emerging markets and higher-margin segments such
as power generation and aerospace.
The company reported a profit of $56.2 million, or 96 cents a
share, up from $36.8 million, or 63 cents a share, a year earlier.
Net sales increased 12% to $693.7 million.
Analysts polled by Thomson Reuters recently forecast earnings of
92 cents a share on revenue of $685.1 million.
Gross margin increased to 47.7% from 46.3%.
The commercial and industrial segment, its largest by revenue,
saw sales rise 10% on higher sales in emerging markets and in its
Europe-based hand-tools business. The Snap-on tools group posted
sales growth of 14%, helped by continued growth in the U.S.
Operating earnings from the financial-services business grew to
$12.5 million from an operating loss a year earlier.
Shares closed at $61.01 and were inactive premarket. The stock
has gained 26% over the past 12 months.
-By Drew FitzGerald and Jenny Roth, Dow Jones Newswires;
212-416-2909; Andrew.FitzGerald@dowjones.com