KENOSHA, Wis. (Jan. 23, 2003) — Tool and diagnostic equipment maker Snap-On Inc. reported improved earnings for the fourth quarter and the year just ended.
In 2002, the firm had earnings of $106 million vs. $19 million in 2001.
For the fourth quarter, the Kenosha-based company posted earnings of $33.1 million compared to a net loss of $17.4 million in the fourth quarter 2001.
Net sales were up 2.8 percent from 2001 in the fourth quarter, topping out at $549.5 million. The company said currency translation favorably impacted sales 2.5 percent in the quarter. Net sales for the year were $2.109 billion, up 0.6 percent in 2001.
Through focusing on brands and lean operating procedures, Snap-On said it expects to see 2003 earnings increase 10 to 15 percent. But most of that growth is likely to come in the second half of the year as the economy recovers.
“We remain cautious regarding the potential for a recovery in the industrial sector in 2003,” said Dale F. Elliott, chairman and chief executive officer. “However, we believe Snap-On is well positioned to take advantage of the opportunities when a recovery takes place. Our improvements have created the potential for leverage in the business, and we continue to place emphasis on accelerating internal growth.”
The company said end-user demand for tools remained strong during 2002. However, it blamed lower sales in the fourth quarter on “continued weak market demand for big-ticket diagnostics and equipment sold through the tech rep organization.”
Meanwhile, Snap-on announced it has signed a multi-year agreement with Cruz Pedregon Racing as an associate sponsor for the Advance Auto Parts Funny Car Racing Team.
Carl Johanson, Snap-on motorsports marketing manager, said Mr. Cruz “has distinguished himself both on and off the track, proving to be a perfect candidate to represent Snap-on. Adding a Nitro Funny Car to our program will also greatly enhance our exposure in the drag racing community and will give us another opportunity to test our line of products.”
Snap-on supported Mr. Cruz during his 1992 championship season through 1994, with team owner Larry Minor and from 1996 to 1998, with team owner Joe Gibbs.
Advance Auto Parts Inc., based in Roanoke, Va., is the nation's second largest auto parts chain. It operates approximately 2,400 stores in 38 states, Puerto Rico and the Virgin Islands.