KENOSHA, Wis. (July 18, 2013) — Snap-on Inc. boosted its net earnings 15.7 percent to $88.4 million on a 3.6-percent increase in sales to $764.1 million for the second quarter, ended June 29, compared with the year-ago period.
"We believe our performance in the second quarter reaffirms Snap-on's strengths in serving serious professionals performing critical repairs around the world every day," said Nick Pinchuk, Snap-on chairman and CEO. "Again this quarter, we achieved higher year-over-year sales and increased operating income in spite of ongoing headwinds in specific parts of our business, and we continued to progress in those strategic areas of importance that we've identified as being decisive to our future.
"For example, our recent acquisition of Challenger Lifts in the second quarter broadens our established capabilities and furthers our advancement along the growth runway of expanding with repair shop owners and managers. Finally, I thank our franchisees and associates worldwide for their significant dedication and contributions, without which these results would not have been possible."
For the first half, Snap-on's net earnings climbed 16.2 percent to $171.2 million on a 22.2-percent surge in sales to $1.51 billion, compared with the year-ago period.
Sales for its segments showed an increase in the second quarter for its tools group by 6.5 percent to $346.2 million and for its repair systems and information group by 8.3 percent to $246.2 million. Sales for its commercial and industrial group, however, dropped 6.1 percent to $266.2 million.
Excluding $8.5 million of sales from the Challenger Lifts acquisition during the quarter and $0.8 million of unfavorable foreign currency translation, Snap-on said the repair systems segment's organic sales in the quarter rose 4.9 percent, primarily due to higher sales to car dealerships and gains in sales of diagnostics and repair information products to independent repair shop owners and managers.
Operating earnings rose for all three groups for the quarter:
• Tools group, up 22.5 percent to $54.5 million;
• Repair systems, up 8.6 percent to $56.7 million; and
• Commercial and industrial group, up 2.4 percent to $33.6 million.
For the rest of the year, Kenosha-based Snap-on said it expects to continue to enhance its mobile tool distribution network, expand in the vehicle repair garage sector, extend into critical industries and build in emerging markets. The company said it expects capital expenditures this year will range between $70 million to $80 million.