KENOSHA, Wis. (Aug. 7, 2009) — Tool and equipment maker Snap-on Inc.'s net earnings for the second quarter plummeted 44.1 percent to $37.4 million as sales fell 23 percent to $590.0 million compared with the year-ago period.
However, second quarter sales increased 3 percent over the 2009 first quarter, while operating earnings of $70.3 million climbed 9.3 percent.
“There were a number of encouraging signs in the second quarter, particularly the sequential improvements for our Snap-on Tools and Diagnostics & Information businesses,” said Nick Pinchuk, Snap-on chairman, president and CEO. “The deepening of the recession across most European economies and the spreading of economic weakness to other industries had a more severe impact on us in the second quarter, particularly for the Commercial & Industrial Group. Nevertheless, sales and operating income for the overall corporation did improve sequentially from the first quarter.”
For the first half, Snap-on's net income decreased 44.5 percent to $72.2 million as sales fell 21.9 percent to $1.16 billion, compared with the year-ago period.
Snap-on Tools Group segment sales dropped 11.8 percent to $258.3 million for the second quarter and 14 percent to $500.7 million for the first half, compared with the year-ago periods.
The company said it expects third quarter sales and earnings will be down year over year.