KENOSHA, Wis. (July 21, 2014) — Tool maker Snap-on Inc. generated a 20-percent surge in net earnings to $106.1 million as sales jumped 8.2 percent to $826.5 million for the quarter ended June 28.
Excluding $10.5 million of acquisition-related sales and $1.4 million of favorable foreign currency translation, organic sales increased 6.6 percent, the company reported.
“Our second quarter results include broad-based organic sales growth, which we believe affirms Snap-on's unique capabilities in providing repeatability and reliability to a wide range of professional customers performing critical tasks in workplaces of consequence,” said Nick Pinchuk, Snap-on chairman and CEO.
“At the same time, we remain committed to realizing ongoing benefits from our Snap-on Value Creation processes, as evidenced by this quarter's 130 basis point improvement in operating margin before financial services and 20-percent growth in earnings per share. Finally, this continued progress along our defined runways for coherent growth and operating improvement would not be possible without the capability and commitment so evident across Snap-on, and I thank our franchisees and associates worldwide for their significant contributions and extraordinary efforts.”
The Snap-on Tools Group segment sales climbed 6.6 percent to $369.1 million in the quarter, reflecting sales increases in both the company's U.S. and international franchise operations. Operating earnings increased $6 million to $60.5 million in the period.
For the first half, Snap-on boosted earnings 18 percent to $202 million on a 7.2-percent increase in sales to $1.61 billion.
Snap-on expects capital expenditures in 2014 will be in a range of $75 million to $80 millio