DOW JONES NEWSWIRES Snap-on Inc.'s (SNA) second-quarter earnings rose 72% as the tool maker reported revenue gains across all segments, particularly in its financial services business. 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. In recent quarters, sales have improved and cost cuts have generally boosted margins. The company posted a profit of $78 million, or $1.33 a share, up from $45.3 million, or 78 cents a share, a year earlier. Excluding an arbitration settlement gain, earnings rose to $1.14 from 78 cents. Revenue increased 12% to $726.7 million, boosted by foreign currency gains. Analysts polled by Thomson Reuters most recently forecast earnings of $1.07 a share on revenue of $726 million. Gross margin widened to 47.1% from 46.9%, though operating expenses grew. The commercial and industrial segment, its largest by revenue, saw sales increase 8.1%. Snap-on tools sales grew 13%. The financial-services business posted revenue of $30.3 million, more than double the $13.9 million a year earlier, boosted by an arbitration settlement gain and higher earnings from the growing on-book finance portfolio. Snap-on shares closed at $93.11 Wednesday and were inactive premarket. Through Wednesday's close, the stock is up 44% over the past 12 months. -By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com
